Technology could help help shorten the 45- to 60-day freight payment cycle that hampers cash flow and hurts carriers, according to Art Mesher, executive vice president of strategic development for The Descartes Systems Group Inc.
Mesher told a Boston business conference this week that many corporations routinely take 45 to 60 day to pay freight bills. Meanwhile, he said many carriers are factoring their accounts receivables for cash at a cost of 15 to 22%.
Mesher told the gathering of financial analysts and the business press that the difference between what shippers currently gain and what carriers pay should provide a basis for negotiation. Mesher said both sides could come out ahead if shippers paid quickly in return for lower rates. The enabling factor, he said, would be reliable logistics systems and shipper acceptance of the proof-of-delivery those systems provide.
Mesher's remarks came during a two-day conference that presented recent Descartes initiatives to security analysts and the press.
Descartes, based in Waterloo, Ont., Canada, provides logistics and fleet operations systems worldwide.
Mesher told a Boston business conference this week that many corporations routinely take 45 to 60 day to pay freight bills. Meanwhile, he said many carriers are factoring their accounts receivables for cash at a cost of 15 to 22%.
Mesher told the gathering of financial analysts and the business press that the difference between what shippers currently gain and what carriers pay should provide a basis for negotiation. Mesher said both sides could come out ahead if shippers paid quickly in return for lower rates. The enabling factor, he said, would be reliable logistics systems and shipper acceptance of the proof-of-delivery those systems provide.
Mesher's remarks came during a two-day conference that presented recent Descartes initiatives to security analysts and the press.
Descartes, based in Waterloo, Ont., Canada, provides logistics and fleet operations systems worldwide.
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