🇺🇸United States

Unbilled deliveries, pickups, and accessorial transport charges

2 verified sources

Definition

Delivery and pickup services, overtime runs, and extra-distance hauls are often not captured or invoiced when scheduling is handled via paper tickets or disconnected tools. Vendors emphasize that integrating logistics with rental and accounting systems eliminates double entry and reduces errors, implying that before integration, service lines and surcharges are frequently missed.

Key Findings

  • Financial Impact: Texada highlights that integrated rental management and accounting reduce errors from double entry and manual edits; in similar rental case examples, customers typically save tens of hours of admin time and capture more billable services, which for a branch running 40 deliveries/pickups a day could easily amount to several thousand dollars per month of previously unbilled trips and fees.[1][4]
  • Frequency: Daily
  • Root Cause: Drivers and dispatchers record deliveries/pickups on paper or in standalone apps, and these are later keyed manually into billing systems; rushed staff omit accessorial items (e.g., extra mileage, wait time, failed delivery fees) or forget to attach delivery confirmations, so invoices are simplified or written off.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Commercial and Industrial Equipment Rental.

Affected Stakeholders

Drivers, Dispatchers, Counter staff, Billing / AR clerks, Branch managers

Deep Analysis (Premium)

Financial Impact

$1,000–$3,000 per month (lost surcharge recovery + potential SLA penalties if delivery performance is not properly tracked) • $1,000–$3,000 per month (regulatory audit risk; potential contract violations if delivery terms are not properly enforced) • $1,200–$3,500/month in missed or incorrectly attributed delivery charges due to lack of integrated yard-to-billing documentation flow

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Current Workarounds

AR Specialist manually reviews event order notes and delivery confirmations; creates retroactive invoice adjustments; frequently unable to recover charges due to time elapsed and customer resistance • AR Specialist manually searches through order notes and delivery confirmations for missed charges; creates ad-hoc invoice adjustments; frequently unable to recover charges due to time lapse or missing documentation • Compliance Officer maintains manual delivery log; reconciles against billing weekly; flags discrepancies in ad-hoc spreadsheet

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Overtime and labor inefficiency from last‑minute, manual scheduling

While vendors do not quote overtime dollars directly, a modest scenario where 5 drivers incur 5 hours of overtime weekly at $45/hour due to poor scheduling equals ~$4,500/month in extra labor, which specialized dispatch boards aim to remove.[3][4]

Excess transport cost from inefficient routing and ‘empty miles’

Wynne’s logistics solution markets reduced empty miles and maximized driver hours as core benefits, indicating that pre-software operations experience significant waste.[4] For a fleet of 10 trucks at $90/hour all-in, saving even 1 avoidable driving hour per truck per day through better scheduling equates to ~$18,000/month in avoided transport cost.

Lost rental days from delayed pickups tying up billable equipment

Wynne Systems notes that delayed pickups tie up equipment that could be earning revenue, implying loss of billable days across the fleet; for a mid-size rental fleet with 200 heavy units at $350/day, even 2 lost billable days per unit per month equates to ~$140,000/month in unrealized revenue.[4]

Rework and customer compensation from late or failed deliveries

If even 2% of deliveries per 1,000 monthly orders require an unplanned second trip (driver + truck at $180 per run) and a $100 goodwill credit, that equals ~$7,600/month in avoidable rework and compensation; the push for better logistics tools exists precisely because of this recurring waste.[4]

Delayed invoicing due to slow capture of delivery and pickup confirmations

EZRentOut and Texada both emphasize automation of bookings, invoicing, and use of mobile apps to capture delivery/pickup confirmations; EZRentOut reports clients saving ~30 hours weekly and increasing turnaround by 25%, reflecting much faster order closure and therefore earlier cash collection.[1][5] For a branch billing $1M/month, even a 3–5 day acceleration in invoicing meaningfully improves working-capital cost.

Idle fleet capacity from slow turnaround between pickup and next delivery

EZRentOut reports clients increasing equipment turnaround by 25% through better tracking and scheduling, indicating substantial prior delays in getting returned assets back into rent-ready status.[5] For a $10M fleet targeting 65% utilization, a 25% faster turnaround can unlock hundreds of thousands of dollars in additional annual revenue opportunity that is otherwise lost capacity.

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