E-Transport Newsletter

Fall, 2006

Volume 3, Number 2

 

 


Greetings from Chairman, Ron Pagoota!


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As your board members and NACM of South Texas are busy finalizing our Fall Conference in San Antonio, I wanted to extend a personal thanks to the TRMG board and NACM South Texas for their combined efforts to bring together one of the strongest credit and revenue management groups in the country!

 

I also would like to take this opportunity to welcome our new members to the TRMG Group that have joined since our Spring meeting in Washington, DC:

 

Covenant Transport
Janette White
Marilyn Loggins


Estes Express Lines
Kenny Debes

Jevic Transportation
Jerry Boyer

Scully Transportation Services
Timothy Angel

 

 

Our theme for our fall meeting is “Driving Transportation Revenue – Deep in the Heart of Texas.”  This industry as a whole has seen increased revenues and profits over the past year and, at the same time, we have also seen the increased number of Paying Agents and 3PLs.  All of us are well aware that, when someone other than our customer is responsible for the audit and payment of our invoices, the challenge to get paid within terms can become more difficult. This meeting will attempt to address these challenges and, hopefully, a more effective way to improve our processes by sharing best practices.   This is one you don’t want to miss so, if you haven’t registered, I would encourage you to do so and be a part of a very important meeting that could save your company time and money.

 

I look forward to seeing each of you in San Antonio in a few short weeks! 

 

 

Your Chairman,

 

 

Ron Pagoota

Southeastern Freight Lines, Inc.

1-803-939-3294

rpagoota@sefl.com

 

 

 

 

 

 

 

 

 

 

 

 

National  Transportation  Revenue Management    Group
(Administered by NACM  Houston)

10887 Wilcrest Drive

Houston, TX 77099

 

Phone:

(281) 228-6100

 

Fax:

(281) 228-6122

 

E-mail:

nacm@nacmsouthtexas.org

 

We’re on the Web!

www.nacmsouthtexas.org

 
Editor:
Kathleen Quill, CAE 
NACM  Houston             
kquill@nacmsouthtexas.org

 

©NACM Houston, 2004

News from Transportation Revenue Management Group


Deep in the Heart of Texas!
It’s almost time for a rip-roaring Texas style Transportation Revenue Management Conference!
San Antonio, Texas

 Oct. 8-11, 2006


Just a few reminders

 

    • Dress: Sunday Evening Event – Casual
    • Meeting Attire: Business Casual

 

  • Monday - The Best Practices Roundtable breakout will provide an opportunity to discuss pertinent issues, challenges and solutions facing your industry today. NOTE: Please submit to any topics you would like to have discussed at your breakout by Friday  September 29th.

 

At the Beer and Browse on Monday evening you will have an opportunity to interact with the Associate Members of the TRMG group and let them know their sponsorship is much appreciated toward supporting this conference.

 

  • Tuesday will provide you with information to enlighten and inform you on Reducing Invoice Exceptions to Improve Cash Flow, Navigating The  Bankruptcy Matrix,  3PL Challenges in Transportation, and the Benchmarking Project.

 

Exchange groups are meeting on Wednesday and Thursday immediately following the conference.  If you are not a data exchange group member and you are interested in visiting one, please contact Deana Gardner to make arrangements.

BENCHMARKING SURVEY OPEN NOW!

Thanks to everyone who has already participated!  This information can be an unbelievably invaluable resource for you to check your company’s performance against the industry.

This year, we have expanded the survey to allow comparisons of key elements across transportation modes – truck, rail & air, as well as key indicators from 3PLs!

REMEMBER!  Results will ONLY be shared with participating companies, so be sure to log on and fill out the simple survey today if you haven’t already: Take me to the survey!

 


News from the Credit World

The following is now in effect, and it affects you!

FCC ISSUES RULES IMPLEMENTING JUNK FAX LAW: The Federal Communications Commission (FCC) on April 5 released rules implementing the federal fax law enacted by Congress in 2005, bringing clarity to a few lingering questions for businesses that communicate with clients via fax.

The “Junk Fax Prevention Act of 2005” (JFPA) proved necessary due to new rules developed by the FCC in 2003 that would have prohibited the sending of commercial faxes without the prior written consent of recipients. The JFPA maintains the “established business relationship” (EBR) exception that allows associations and businesses to send unsolicited commercial faxes to their members and to other recipients with whom they have an established business relationship. In addition, the law requires that all unsolicited commercial faxes include an “opt-out” provision on the first page of a fax; that the sender provide a cost-free, 24-hour means for the recipient to request to be removed from the fax distribution list; and that fax numbers (other than those in the possession of the sender prior to the enactment of the law) be obtained either directly from the recipient or from a public source to which the recipient gave the fax number for publication (i.e., a website, advertisement, or directory).

The JFPA authorized the FCC to determine the “shortest reasonable time” that senders must comply with an opt-out request, and establish whether a time limit on the EBR was necessary, among other things.

Notably in its rulemaking, the FCC did not limit the duration of the EBR, although it reserved the right to evaluate the nature of complaints regarding faxed advertisements over the next year to determine whether they’re a result of the EBR. The FCC cited ASAE’s (American Society of Association Executives) comments in determining that 30 days is a reasonable time period for organizations to honor an opt-out request, taking into consideration the limited staffing resources of many associations and other small businesses.

The FCC’s rules also clarify the term “unsolicited advertisement” as “any material advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person without the person’s prior express invitation or permission, in writing or otherwise.” Informational pieces such as an association’s newsletter or legislative updates do not constitute unsolicited advertisements so long as the primary purpose of the communication is informational, and not to promote commercial products. The FCC has found that even “an incidental advertisement contained in a newsletter does not convert the entire communication into an advertisement.”

Visit the FCC website to read the FCC’s rules in their entirety.

Source: ASAE Inroads, 2006

Some interesting credit Q & A from a recent Covering Credit Bulletin:

 

Q:  What interest rate can we charge on past due accounts?

 

      A:  You did not mention what State you were selling to.  This link provides usury rates State by State. It is a free site:  http://law.enotes.com/everyday-law-encyclopedia/interest-rates

Q.  Our terms are Net 30.  The customer’s Purchase Order showed net 60 when I pulled it.  Is the invoice due in 30 days or in 60 days?

 

        A.  Probably 60.  Even if your invoice and your credit application indicate that the terms are net 30 days, when the customer modifies this arrangement by presenting a PO with net 60 day terms and that PO goes unchallenged there is little that you can do after the fact to correct this problem and accelerate the customer’s payment plans.

 

The key is the proverbial ounce of prevention. Someone must be responsible for and accountable for reviewing customer purchase orders and rejecting those with unacceptable terms and conditions.

Q.  How do you develop an appropriate bad debt reserve?

 

     A.  I recommend a three step process.  The first step involves developing a general reserve based on historical bad debt write offs.  The second step involves creating a specific reserve for accounts in bankruptcy, placed for collection, in receivership, etc.  The third step is to create a high risk reserve for accounts that the credit department is currently concerned about.

Source:  Michael Dennis, Covering Credit Bulletin

2005-2006 Group Leadership

Thanks for all your work!

2005-2006 Chairman:                   Ron Pagoota, Southeastern Freight Lines
2005-2006 Vice Chairman:          Jeff Jones, FedEx National LTL
Associate At Large:                     Karolyn Rubin, Bonded Collections
Carrier At Large:                          Kevin Sauntry, Ryder

 

 

 

 

Transportation Revenue Management Group

National Association of Credit Management – Houston

10887 Wilcrest Drive

Houston, TX 77099