How To Reduce Dwell Time With Digital Payments

Outdated technologies are slowing down the supply chain at a time when the transportation industry could use all the extra time it can get. One area ripe for improvement is the unloading payment process, which is known to drive up dwell times and costs. Fortunately, emerging digital technologies can address the payment problem while creating value for shippers and carriers.

The Unloading Payment Process

The unloading payment process today is time-consuming and cumbersome in many supply chains. Carriers often make unloading payments—or lumper payments—at receiving locations, where a warehouse associate unloads the truck. In this scenario, a truck driver is notified of unloading fees upon check-in at the warehouse. Once unloading is complete, the driver must complete multiple administrative steps:

Driver pays unloading fee with cash or fleet check, calling his or her company for 18-digit check code to tender to the receiver
Receiving clerk calls to verify 18-digit code and validate check
If check is invalid, driver calls for a new check, delaying door-turn time further
After completing the transaction, receiving clerk issues a paper receipt
Driver maintains paper receipt and faxes it for reimbursement

Although shippers are legally required to reimburse carriers for unloading fees, which can average $200 per load or more, floating the expense creates a significant cash flow burden for carriers. Worse, carriers often miss reimbursements and profits they are owed from shippers due to lost receipts, theft, long dwell times, and other pitfalls.

The process is outdated, inefficient, not secure, and frustrating for all.

Addressing the Payment Problem Through Technology

Innovations in payment technologies are not only addressing the lumper payment problem and modernizing the dock, but also creating value across the supply chain.

Remote Payment Processing

Remote payment systems enable carriers to make fast, easy, electronic payments from mobile phones with payment options like fleet check, fuel cards, or credit cards. The contactless approach enables drivers to remain in the cab throughout the process, which gets drivers back on the road faster, reduces risk of COVID-19 transmission, and improves the driver experience overall. Electronic receipts are automatically sent to drivers and carriers and stored for future reference, which protects all members of the supply chain from loss and fraudulent activity. Warehouses benefit from improved flow of inbound transportation and reduce supply chain waste.

Direct Bill

Direct billing removes drivers from the payment process altogether. Implementing a direct bill program has been shown to decrease average driver dwell times at distribution centers by a considerable amount of time per load. In fact, one international food manufacturer reduced average unload time by a whopping 21%.

Innovations from Capstone Logistics

Capstone Logistics is proud to announce the launch of CapstonePay, a remote payment system that allows truck drivers to pay for unloading services without leaving their cab. CapstonePay is the first payment solution to fully integrate directly with all major fleet check and fuel card providers including Comdata and WEX. CapstonePay also ensures faster reimbursement, reduced dwell time, and fraud reduction.

Capstone also offers Direct Bill at certain sites to further streamline unloading payments.

A better lumper-payment experience is just one way to reduce unnecessary delays and inefficiencies in logistics today. Capstone’s integrated transportation and warehousing platform improves communication and provides end-to-end visibility from point of origin to warehouse receipt. With solutions spanning transportation management, warehousing, and last mile delivery, Capstone partners enjoy improved performance, reduced costs, and mitigated risk.