Novelty from Girteka Logistics: electronic document circulation and fast payments for partners-carriers

Girteka Logistics successfully invests in the development of IT solutions and technologies for process automation. Digitization of operations made it possible to switch to electronic document circulation and allowed the company to significantly reduce the time it takes to fulfill its financial obligations to carriers. 

Girteka Logistics is a leading transport company in the European region, trusted by thousands of customers. However, even 8,000 trucks are not enough to meet all obligations on time, since logistics, like no other industry, is subject to many external factors and unforeseen circumstances. Therefore, the company is interested in establishing cooperation with reliable carriers operating trips to Russia, the CIS countries, Europe, and Central Asia.

In order to make cooperation effective and reduce the deadlines for fulfilling financial obligations to its carrier partners, Girteka Logistics has created a digital platform Partners Portal, which made it possible to launch a full-scale electronic document circulation.

Working with paper documents assumes that the invoice payment deadline is counted from the day the customer receives the originals of the primary transportation documents (bill of lading, invoices, etc.). Usually in transport applications there is a mandatory clause: “payment term: 15, 20, 40 days after receiving the originals of accompanying documents.” However, the actual period when the carrier will receive the money on the account may take weeks and be 60-90 days, if the driver’s cadence has just begun and he will not return to the base soon to hand over the documents to the accountant. A small transport company cannot fully manage its finances if the timeframe for making a profit stretches over several months, and this can affect its further growth and development.

The electronic document circulation, which was launched by Girteka Logistics, allows to speed up the delivery and processing of primary transportation documents and, accordingly, significantly reduce the time required for payment of invoices for services performed.

“Girteka Logistics strives to become No. 1 for its customers and partners, which is why, ahead of time, we are introducing digital technologies into our logistics business processes. The coronavirus pandemic, the transition to a remote form of work, interruptions in supply chains due to quarantine measures, the closure of borders between states and other factors only accelerated the digitization of most of the operations at Girteka Logistics, including the transition to electronic document circulation,”says Zigmas Mikoliūnas , Head of the Russian Business Unit of Girteka Logistics.

Documentation of 46% of shipments in Girteka Logistics is already processed and stored in electronic format. By the end of the year, the company plans to increase this figure to 70%.

Thanks to the introduction of electronic document circulation, the company was able to reduce the payment terms for contractors for transportation in international traffic up to 30 days. This means that the carrier only needs to enter the Personal Account and upload an electronic copy of the CMR and invoice to the platform, and after 30 days the transportation service will be paid for.“Electronic copy” also means a photo of documents in good quality, taken by the driver on the phone immediately after shipment.

If it is indicated in the transport application that the carrier is obliged to provide the originals of the primary documents for the carriage of goods, the payment period will also be counted from the date of adding an electronic copy of the documents to the platform, and will be 30 days. But only on condition that the original documents are delivered by mail or courier service to the Girteka Logistics office during this period.

“Electronic document circulation allowed Girteka Logistics to reduce the terms of payments for carriers for their performed services, which is especially important for the sustainable and stable operation of transport companies,” adds Zigmas Mikoliūnas.