How To Convert Freight Bill Data Into Business Intelligence

The data collected along the shipment journey plays an integral role in a company's ability to conquer the uncertainties that plague the transportation ecosystem. In this blog, we’ll share how information gathered from a bill of lading (BOL) can provide visibility into your operations, serve as true business intelligence, and empower your teams to make better decisions.

One way companies analyze information on the freight bill is by pattern extraction. This allows businesses to make sense of the mounds of data used in the freight billing process, measure customer satisfaction, and identify strategic business goals.

How Data Capture Methods Impact Accuracy and Efficiency

Before data can be mined and patterns identified, it must be captured.

This is typically done in one of three ways, or a mix of them: manually, by template-based Optical Character Recognition (OCR) programs, or by template-free processing, which is a much rarer form of capture. The methods you use determine the simplicity of the process and the accuracy of the information being examined. While template-based OCR automatically processes bills based on content, template-free models apply machine-learning technology with context recognition to learn, understand, and store new bill templates for future straight-through processing. This advanced method of data matching and validation allows companies to classify, extract, reconcile, and export data in a way that enables its full utilization after processing is complete.

Put Data in the Driver's Seat

Logistics is about collecting information: where deliveries are, where they must go next, and the most cost-effective way to get them to their destination. The intelligent and effective collection, analysis, and application of data help companies predict and prepare for what's next.

This is critical when making decisions for all aspects of the operation, including retaining a profitable customer base. What does the data tell you about how you meet customer expectations?

A few questions transportation providers should ask themselves:

• Are our turnaround times on par?
• Do our customers have full visibility into where their deliveries are at all times?
• Are we meeting shipper requirements for delivery?
• How often do we audit our freight bills?
• How quickly do we rectify billing discrepancies?

Identifying pain points and working toward solutions based on tangible data found along the delivery route helps build customer trust while pursuing better business health. This is where the BOL comes into play. Valued as the contract of carriage, the BOL includes a variety of fields that, if analyzed and audited properly, can help you strengthen your strategic approach to deliveries, customer reliability, and cost containment.

Unlocking Business Intelligence from BOL Data

A BOL is more than just a shipping document; it’s a goldmine of business intelligence. By analyzing key fields, you can uncover valuable insights to optimize operations, improve customer experiences, and drive growth.

Here are some critical BOL data points to evaluate and how they can transform your logistics strategy:

Freight Classification & Number of Units

• Opportunity for Discounts: Analyze freight classifications and shipment volumes to identify opportunities for customer discounts. Preferred customers shipping certain freight classes or reaching a shipment threshold could be rewarded, fostering loyalty.
• Marketing Insights: Look for recurring themes in freight classifications to inform targeted marketing efforts.

Precise Shipment Weight

• Prevent Discrepancies: Tracking shipment weights can help you identify recurring discrepancies between order placement and pickup. Consider investing in tools to resolve these inconsistencies.
• Implement Weight Strategies: Analyze weight patterns to determine if minimum weight requirements or reweigh fees are impacting your customer experience.

Shipper and Receiver Information

• Route Optimization: Review geographic trends to identify opportunities for combining shipments headed in the same direction, maximizing load efficiency.

Shipment Dates

• Seasonality Planning: Beyond seasonal demand, review how your workforce strategy aligns with service commitments. Evaluate blockers like holidays or inclement weather to improve staffing and maintain year-round reliability.

Unique Shipment Instructions

• Process Improvements: If you frequently receive complex instructions, adapt your shipper onboarding process or revise your BOL template.
• Keyword Trends: Extract recurring keywords in instructions to create new offerings or services. Identify ways to automate these processes to enhance shipper satisfaction and streamline operations.

Packaging Details

• Cost Analysis: Track the frequency and cost of supplying packaging materials. Determine how packaging impacts load capacity and identify opportunities to optimize.

Stated Cargo Value

• Liability Adjustments: Check for inaccuracies in stated cargo values and determine if disclaimers in your order interface need revising. Use trends in claimed value to reevaluate liability insurance or introduce tailored service options for high-value cargo.

Account Numbers or POs

• Reduce Errors: Automate processes to minimize errors in account number or PO fields. Evaluate recurring account data to identify loyal customers who can be incentivized through rewards or referral programs.

Hazardous Material Notes

• Optimize Pricing: If hazardous materials shipments are increasing, explore pricing adjustments. Conversely, if volumes are low, investigate whether you can reduce insurance costs.

Client-Specific Insights

Dive deeper into how much business is conducted with specific clients and where deliveries are concentrated. This analysis can help you:

• Identify growth opportunities in specific markets.
• Develop tailored discounts or delivery accommodations.
• Build stronger relationships with key customers.

A BOL is more than paperwork. It is a strategic tool that can help you refine processes, create new opportunities, and deliver more value to your customers. By leveraging these insights, you can turn logistics data into a competitive advantage.

Data Holds the Answers

While the possibilities are endless, here are some questions transportation providers can answer with the data at their fingertips now:

• Asset utilization: Is space being maximized?
• Customer service: Are shipper requirements for delivery being met?
• Marketing opportunities: Can discounts be applied to specific routes?
• Route optimization: Can regular shipments be added to existing loads for delivery along the way?
• Markets of interest: Is there room for expansion to deliver more shipments to a particular geographic area?

For example, after implementing freight billing with The DDC Group, The Custom Companies reduced hours from its linehaul schedule, enabling shorter delivery times for customers. Similarly, Estes Express Lines strengthened customer relationships by providing more accurate data faster than ever, thanks to our intelligent freight billing solutions.

Whether your goals for this year include cutting overhead, reducing turnover, digitizing operations, expanding into new markets, or diversifying service offerings, the insights you need to make informed decisions are already within reach. With the right tools and strategies, your business can achieve its objectives and drive growth.