Operational inefficiencies and fraud prevention are two of the hottest topics in logistics today. Good carrier screening protocols and improved onboarding processes can offer significant improvements in both areas.
Descartes recently acquired MyCarrierPortal to combine the strengths of both businesses, creating a more powerful solution for companies looking to boost efficiency while tackling fraud head-on.
“Carrier fraud and cargo theft is an ongoing problem in the transportation industry. This acquisition is another investment to help enable improved Know-Your-Carrier (KYC) capabilities that are critical to improve supply chain performance and fraud reduction,” said Dan Cicerchi, general manager of transportation management at Descartes.
This strategic move offers substantial benefits for brokers, shippers and carriers alike. The combined offerings of Descartes and MyCarrierPortal (MCP) have the power to transform the way companies approach carrier vetting, onboarding and fraud prevention.
Streamlining carrier onboarding
Too often, the process of vetting and onboarding new carriers stands in the way of brokers, shippers and carriers working efficiently. When these processes are too convoluted, or rely on manual labor, everyone loses.
MyCarrierPortal specializes in simplifying the onboarding process for freight brokers and shippers by providing a secure, centralized platform that collects and verifies crucial information about carriers. This includes insurance compliance, safety records, incident reporting and legitimacy checks.
By integrating MCP’s platform into Descartes’ Global Logistics Network, the onboarding process for carriers and users also becomes significantly more efficient by enriching data and consolidating workflows with other Descartes solutions, creating a win-win-win scenario.
Faster onboarding
MCP’s platform automates much of the vetting process, allowing brokers and shippers to onboard new carriers quickly. That reduces delays in matching freight with suitable carriers.
Insurance and compliance monitoring
Once carriers are onboarded, MCP continues to monitor their compliance. The system immediately notifies users of any issues, such as lapses in insurance or other safety concerns, allowing for swift corrective action.
Identity verification
A key factor in reducing the risk of identity-related fraud, carriers are assessed and validated through strict security measures.
Reducing fraud and cargo theft risks
Freight fraud has been on the rise since late 2022, reaching an all-time high in the first quarter of 2024. During the first three months of the year, CargoNet documented 925 reports of theft across the industry. That is a staggering 46% increase over the same quarter of 2023.
Theft reports did fall to 771 during the second quarter of 2024, representing a slight drop from the record highs of the previous quarter, but still eclipsed the second quarter of 2023 by 33%.
It is too soon to tell if the first-quarter highs represented a true inflection point or if cargo theft will continue to rise the rest of the year. Either way, theft and other types of fraud still pose an immense risk to everyone in the logistics industry.
Descartes’ acquisition of MCP enhances the company’s capabilities in combating these risks. The integration of MCP with Descartes’ MacroPoint FraudGuard solution creates a comprehensive, end-to-end risk management platform.
Enhanced fraud prevention
By adding MCP’s carrier screening and monitoring capabilities, Descartes can strengthen its ability to prevent fraud before it happens. This significantly reduces the likelihood of bad actors being onboarded as legitimate carriers.
Improved visibility
The integration enhances real-time tracking and compliance monitoring, giving brokers and shippers greater visibility into their carriers’ performance, reduces the chances of cargo theft, and assists in potential recovery efforts.
“We actively connect with hundreds of thousands of carriers and thousands of brokers and shippers. Many of these participants have expressed their desire for us to further extend our investments in fraud prevention. The combination of MCP and our Descartes MacroPoint FraudGuard tool presents a differentiated solution for our customers to efficiently onboard carriers while enhancing visibility and compliance and reducing fraud risk,” Cicerchi said.
Improving customer service
This acquisition aligns with Descartes’ broader goal of providing seamless, secure logistics solutions. MCP’s capabilities complement Descartes’ existing technology, including its TMS, compliance, connectivity and real-time visibility tools.
In essence, the acquisition allows both Descartes and MCP to offer more integrated, secure and streamlined services to their customers, helping them maintain high standards of safety and efficiency in their operations.
Visit Descartes and MyCarrierPortal to learn more.
The post Improving carrier onboarding is first step in tackling freight fraud appeared first on FreightWaves.
