Outdated supply chain practices are more than just an inconvenience – they're a significant drag on efficiency, profitability, and growth.
In this webinar, our CEO Matt McKinney chats with Christopher Claus from JP Morgan and Jeff Toman from Great Dane, to shed light on the challenges facing many shippers today:
- 80% of invoices are manually keyed into finance systems, leading to errors, delays, and wasted labor hours
- 60% of invoices are still paper-based, creating storage issues, increasing the risk of loss, and slowing down processes
- 40% of B2B payments in the US are paid via check, tying up working capital and increasing fraud risks
These statistics might be startling, but there’s hope on the horizon.
Loop, in partnership with J.P. Morgan, accelerated Great Dane's transformation from Supply Chain 1.0 to 3.0 and beyond, unlocking new levels of efficiency, revenue, and financial control.
Stuck in Supply Chain 1.0
While Great Dane recognized the need for modernization, the COVID-19 pandemic became the tipping point. Jeff shared, "The main catalyst that drove us to make this move was COVID. It really highlighted our dependence and reliance on paper."
That reliance meant:
- Limited visibility into spend and invoices
- Fragmented systems (i.e. paper folders and a generic AP platform)
- Friction across internal teams and carriers
These outdated practices led to significant inefficiencies. As Jeff explained, "Our legacy process meant invoices over $1,500 were sent to traffic for validation and approval. Consequently, any invoice under $1,500 required accounts payable approval. However, they lacked the expertise with the technical aspect of the freight industry and the rates and commodity codes necessary to really validate what we're being invoiced."
Skipping straight to Supply Chain 3.0 with Loop
Great Dane had two choices when it came to their approach to modernizing: incrementally improve or take a leap.
They started to incrementally enter Supply Chain 2.0 with legacy software, when they brought on a generic AP platform. But they quickly realized, the simple software wouldn’t be able to handle the complexity of supply chain payments let alone allow for any automation. So they looked for a better, more modern, solution.
Great Dane decided to leap directly into Supply Chain 3.0 with Loop’s AI-driven workflow automation. This partnership drove significant improvements across four core areas:
- Data Management:some text
- Before: No usable transportation cost data
- After: Complete cost visibility
- Workflows:some text
- Before: People and paper-based workflows
- After: 98% of audit and pay processes automated
- System Integration:some text
- Before: Folders and excel sheets
- After: Centralized platform with self-serve analytics
- Collaboration:some text
- Before: Friction across AP, transportation, and carriers
- After: Improved collaboration internally and externally
98% of invoices audited with no human touch
The impact of this transition was immediate and substantial. But the best part is that it continues to improve. At launch, Loop’s AI executed automated 70% and now it’s up to 98% automation:
- Improved visibility:some text
- Data and documents are now ingested, extracted, and standardized within 2 hours
- $2.3M in spend tracked
- Automated auditing:some text
- 98% of invoices audited with no human touch
- $77,000 in overcharges identified
- Risk reduction in payments:some text
- 100% of payments automated
- Transitioned from paper checks to Loop-activated ACH
- Financial benefits:some text
- 1.5% quick pay discount offered to carriers
- 21% of inbound FTL carriers activated on quick pay so they get margin back
"98% of our freight invoices are successfully being audited and basically approved for payment without any touching. And those invoices, once they hit the platform, are pretty much ready for payment within about two hours." - Jeff Toman, Financial Executive Great Dane
Margin back on 21% of inbound FTL with quick pay
Great Dane didn't stop there. The implementation of quickpay marked Great Dane's first foray into Supply Chain 4.0.
Great Dane leverages Loop and J.P. Morgan's quickpay to offer their carriers same-day payment for a 1.5% discount. This offers a rare supply chain win-win-win:
Carriers:
- Choice in how and when they get paid
- Access to competitive rates
- Ability to get paid same-day without giving up 3-5% to factoring companies
Great Dane:
- Becomes a "shipper of choice"
- Improves carrier relationships
- Earns rebates on payments
- Maintains or even extends payment terms
The Supply Chain:
- Improves cash flow throughout the system
- Reduces financial friction
- Strengthens relationships between shippers and carriers
Jeff has already seen the benefits. "We've had carriers interested in it... In the words of one of the carriers, 'Who doesn't want to get money in their hands quicker?' From our perspective, to be able to get a meaningful rebate on 21% of our FTL payments has been a plus, and we look forward to growing that segment."
This is just the beginning of a transition to a more interconnected and mutually beneficial supply chain ecosystem.
Supply Chain 4.0: Connected ecosystem
With the foundation of Supply Chain 3.0 in place, here’s why Great Dane is excited about the future of Supply Chain 4.0 with Loop:
- AI-driven value delivery: Moving beyond workflow automation to AI-driven decision-making and value creation.
- Unified network data: Expanding data integration beyond the company to include suppliers and customers, creating a truly connected supply chain.
- Connected networks: Transitioning from connected systems within the company to connected networks across the entire supply chain ecosystem.
- Enhanced collaboration: Achieving transparency and collaboration not just internally, but also with suppliers and vendors.
As Great Dane continues its journey towards Supply Chain 4.0, the company is exploring ways to extend these benefits beyond freight payments. "We're looking forward to being able to grow the electronic payments to our other supply chain partners, whether it's MRO, raw material, or other spend," said Jeff.
Loop gets you to Supply Chain 3.0 today and 4.0 tomorrow
Great Dane's journey from Supply Chain 1.0 to 3.0 demonstrates how modern payables solutions dramatically transform operations by eliminating manual processes, improving cash flow, and profitability.
This transformation led to significant improvements in financial control through increased accuracy, reduced fraud risk, and better visibility. As a result, Great Dane is well-positioned to thrive not just today, but tomorrow in Supply Chain 4.0.
Contact us today to learn how Loop can transform your supply chain.
