Five Ways Payment Programs and Regulations Preserve Carrier Capacity.

Author:Garcia, Cheryl

The partnership between the military and the freight carrier industry is stronger than ever. It spans from the branches of military service and multiple government agencies to providers around the globe who all play important roles in support of the Department of Defense (DOD) mission.

Without carrier capacity, everything from delivering military vehicles and equipment stateside and overseas to the movement of household goods for those who serve our country would be impacted. That's why efficiency and collaboration are so very important.

Successful cross-industry collaboration depends on all parties working together toward a common goal, and everyone has a role to play. What many may not realize is there are programs and regulations involving carrier industry payments that are vital to maintaining carrier capacity. Let's take a closer look at five of the key ways carrier capacity is supported in the payment process.


The DOD operates an increasingly complex supply chain that must reach around the world. Typically, no singular mode whether rail, surface, ocean, or air, transports a shipment from origin to destination. Rather, it is the collaboration amongst providers and in various modes of transport.

Without capacity and an efficient supply chain, the ability to fully supply and support the DOD's more than 800 military installations in more than 70 countries across the globe would not be possible. While there are more than 130 different DOD systems used to otder, transport, track and account for transportation payments, the DOD's use of a third-party payment system (TPPS) provides a streamlined audit and payment process to:

* Connect with true local resources who understand the local regulations and logistics industry

* Support readiness with multi-currency and multilingual capabilities

* Provide the right data in the right format by capturing all relevant data and ensuring data harmonization for important information such as currencies

* Properly control access to data. While not all users need access to all data, they do need access to the right information--which may include data across several entities for analysis.

* Efficiently allow access to reporting and business intelligence

By utilizing a TPPS with these attributes, the DOD can better manage freight spend, regardless of geographic or divisional boundaries.


All carriers depend on timely payments to keep their...

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