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Automate Freight Damage Claims: A Supplier's Guide | iNymbus

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What Are Freight Claims?

Freight claims are requests for compensation sent by shippers or consignees to carriers for losses, damages, or other transit issues. These claims are vital for recovering costs from shipping mishaps and ensuring financial stability.

Why Are They Important?

  • Handling Retailer Shipments and Valid Deductions: Freight claims provide a formal process for suppliers to recover costs from carriers for valid issues like shortages or damages, maintaining smooth financial operations and good retailer relationships.

  • High Volume of Damage and Shortage Claims During Transit Between Warehouses: Filing freight claims helps suppliers recover costs associated with these issues, ensuring financial stability by making sure the carrier bears the cost of damages or losses.

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Common Documents Required to Support Freight Claims

  1. Bill of Lading (BOL): It's the contract between the shipper and carrier that outlines the shipment and its terms.

  2. Shipping Invoice: An invoice that provides a detailed list of the shipped items along with their respective values.

  3. Packing List: A document listing the contents of the shipment.

  4. Proof of Delivery (POD): A document signed by the receiver confirming the delivery of goods.

  5. Photo Documentation: Photos or videos showing the condition of the goods upon arrival, particularly useful for damage claims.


Check out our article on how to automatically retrieve these documents from sources like EDI.

 

Why Freight Claims Are Hard to Handle

  • Manual Processes:
    Entering claim details by hand into carrier portals takes a lot of time and is prone to mistakes. Errors in data entry can cause claim denials or delays. Navigating different carrier portals, like those for FedEx damage claims or UPS freight claims, can be frustrating and lead to errors.

     

  • Tight Deadlines: 

    Carriers like UPS and FedEx have strict deadlines for filing claims. For instance, UPS gives you only 180 business days from the delivery date to file a claim. Missing these deadlines can result in automatic denial of claims, causing financial losses.

     

  • Complex Documentation:
    Many supporting documents are needed, such as BOLs, invoices, packing lists, and delivery receipts. Each document must be accurately completed and submitted, often within tight deadlines.

     

  • Financial and Operational Impact:
    Delays in processing freight claims can affect a supplier’s cash flow, as they may need to wait for reimbursement for damaged or lost goods. The time and resources spent on managing freight claims take away from other important tasks, leading to potential disruptions. 

Check our blogs on retailer deductions.

Real-World Example of Manual Freight Claim Problems

D&H Distributing faced serious problems with their freight claims. Each month, they had to handle over 3,000 claims. This inefficiency caused many claims to be denied by their original suppliers. They tried hiring more staff, but it only helped a little. 

 

A big challenge was the time needed to file a claim online. It took a long time to gather documents and wait for follow-ups. Tracking numbers had to be managed very carefully to file claims correctly. This manual work often led to delays and mistakes, making things worse. They were nearly out of ideas until they found iNymbus.

 

D&H Distributing CTA

 

How iNymbus Automates Freight Claims Processing 

iNymbus uses robotic process automation (RPA) to simplify the freight claims management process, especially with carriers like FedEx and UPS:

 

Automated Data Collection: iNymbus automatically gathers all required documents from your systems and carrier portals like FedEx accounts.

 

Form Filling: It enters the necessary details into FedEx and UPS claim forms, removing manual effort.

Document Uploading: iNymbus uploads all essential documents, such as Bills of Lading (BOL) and invoices, to support your claim.

 

Tracking and Follow-up: It tracks the status of your claims and follows up as needed, ensuring they are processed and resolved quickly.

 

How iNymbus Solved D&H’s Freight Claims Problems

iNymbus designed custom solutions to streamline D&H’s freight claims. Robotic Process Automation had three main goals:

 

  • iNymbus automated repetitive actions that were traditionally done by humans.
  • Reviewed, validated, and input data from shipping companies like FedEx and UPS.

Deduction Management Software

 

Benefits of Freight Claim Management Software

Efficiency: Automated systems can work continuously without breaks.

 

Scalability: Software can be adjusted to handle increased claim volumes.

 

Resource Allocation: Employees can focus on analytical tasks and improving processes.

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