Simplify and streamline logistics claims: your path to efficiency

You know it already; freight claims are a persistent pain point for shippers and logistics service providers. Logistics claims can become a significant drain on your resources. Manual processes and endless back-and-forth communications demand dedicated time and that you can invest elsewhere in your business.

The good news?

Modern technology, especially automated systems, is transforming how you can manage freight claims in the transportation industry.

 Let's explore how the right technology simplifies your logistics claims management and supports strategic shifts in your transportation operations.

The current state of logistics claims

Many companies still rely on outdated, manual processes to manage freight claims; email, fax and even postal mail. This approach inevitably leads to inefficiencies and increased costs. And with freight claims consistently on the rise, so are the costs of managing them.

The financial impact is simply too great to ignore, given the substantial value of the total logistics claims filed.

Traditionally, you take information from the claimant through email, fax or mail and then manually transcribe it into your transportation management software (TMS) and claims management system. Inefficiencies multiply quickly from updating multiple systems to constantly checking old correspondence and following up for resolution.

The financial equation is straightforward; manual claims management demands resources without contributing to revenue, creating an imbalance that becomes even more problematic when recovery attempts fall short.

Plus, when your freight claims process becomes cumbersome, it grows increasingly difficult to manage effectively, highlighting the urgent need for improvements and integration to streamline your workflows.

Going beyond filing: technology that transforms claims management

Today’s freight claims technology does more than digitize filing. It streamlines the entire lifecycle of a claim- whether it’s for loss, concealed damage or OS&D (over, short and damaged) - by centralizing data and automating workflows.

 Our freight Claims Management solutions help you achieve harmony in claims management by eliminating manual data errors and reducing reliance on paper-based systems.

Here’s how to maximize your use of freight claims technology:

• Integrate seamlessly: Use APIs for real-time data connectivity between systems.
• Go cloud-based: Adopt SaaS platforms to enable flexible, scalable operations.
• Ensure data accuracy: Normalize data to support precise reporting and analytics.
• Apply advanced analytics: Use descriptive, diagnostic, predictive and prescriptive analytics to drive smarter decisions.

By transitioning from outdated manual processes to a streamlined, efficient and automated system, you can significantly reduce costs and errors in your claims management.

Benefits of modern freight claims management

Recent supply chain disruptions, including labor challenges, strengthen the case for eliminating the waste of outdated processes commonly associated with freight claims.

Additionally, the transportation industry is becoming more collaborative, moving away from the long-standing conflicts that often arise from logistics claims.

Here are some ways to measure the benefits that modern logistics claims management provides:

• Cost savings: automate manual processes, schedule tasks and leverage reminders to reduce your administrative and labor costs.
• Improve accuracy: any time you can reduce touches and manual intervention; you minimize errors and ensure accurate data handling. This directly leads to more timely claim resolution.
• Reallocate resources: the efficiencies you gain allow you to reallocate your resources to more value-added work.
• Enhance relationships: timely resolutions of freight claims benefit both you and your carriers and remove counterproductive finger-pointing. Automated systems ensure both parties have access to the same information, allowing you to work together to address the claim. This reduces misunderstandings and fosters trust, building stronger partnerships.

By applying technology to your logistics claims, you can track patterns, pinpoint recurring issues and develop targeted strategies to prevent future claims... ultimately fostering a more efficient and cooperative supply chain.

Real Results: Infios's Claims Management in action

Thomas Butkovich Jr., Director of Cargo Claims at The Custom Companies, shared the   impact of adopting Infios’s Claims Management solution:

“We had a very manual legacy process - taking claim details via email, fax or mail and transcribing it into both our TMS and claims system,” he said.

This approach created delays and required constant status checks across multiple systems. But that changed with Infios’s Claims Management solution.

“The quick-claim functionality allowed claimants to submit directly, which was a game-changer,” said Butkovich. “During the demo, I was sold.”

The results were dramatic:

“We went from five people managing claims to just me and one analyst. One and a half people now handle 2,700 to 3,200 claims a year - without compromising quality.”

With automated letters and simplified claim entry, the team reclaimed time for more strategic tasks while improving the claimant experience.

Embracing the future of logistics claims management

While avoiding damage, shortages and other issues is ideal, the reality is that mistakes happen.

Freight claims are an inevitable part of logistics.

They disrupt the smooth flow of your supply chain, often relying on manual intervention to resolve. Think of them as micro-disruptions that, although common, don't have to remain inefficient.

By leveraging modern technology and integrated systems, you can transform how you handle these claims. Efficient claims management not only mitigates these disruptions but enhances your overall supply chain performance, turning challenges into opportunities for improvement and growth.

Want to see what modern claims management looks like?
Download our “freight claims software checklist” to understand all the capabilities your freight claims management software should include.