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Freight pickups

How do I get control of inbound freight from our suppliers?

Key Takeaways

  • Inbound control starts with freight terms. When suppliers ship prepaid and add, they choose the carrier and the price. When the buyer controls routing, it does.
  • Routing instructions tell suppliers exactly how to ship: which carrier, how to request pickup, what goes on the BOL and who gets billed.
  • Visibility starts with the purchase order. Every inbound shipment should be tied to a PO, with a confirmed ship date, a carrier and a tracking reference.
  • Receiving appointments protect the dock. Scheduled deliveries mean fewer surprise trucks, less detention and faster receiving.
  • Track inbound freight cost per PO and per supplier. Freight hidden inside a supplier's invoice is freight nobody can manage.
  • Wilson, by Cartage, is an AI logistics agent that books inbound pickups with the company's approved carriers, tracks each load against its purchase order and audits each carrier invoice before paying it.

How do I get control of inbound freight from our suppliers?

The receiving dock gets six trucks on Tuesday morning that nobody expected, and none on Wednesday when production needs a part. Purchasing knows the POs were placed but not when they shipped. Accounts payable sees freight charges on supplier invoices that vary from $90 to $600 for similar shipments. When a critical part is late, the only way to find it is to call the supplier, who calls their carrier, who calls back hours later.

Get control of inbound freight by changing freight terms so the company, not the supplier, chooses the carrier on important lanes, giving every supplier written routing instructions, tying each inbound shipment to its purchase order, requiring receiving appointments and tracking freight cost per PO and supplier. Not every supplier needs to change at once. Start where the spend, the volume or the production risk is highest.

Why inbound freight is often out of control

Many companies buy goods with freight included or added by the supplier. The supplier picks a carrier, books it and adds the cost to the invoice. This is easy for the buyer, which is why it's common. But it means the buyer has no say in the carrier, no view of the shipment until it arrives and no way to check whether the freight charge is fair. The supplier has little reason to look for the best rate, since the buyer pays it.

What control means in practice

Inbound control doesn't mean the logistics team books every shipment from every supplier. It means the company knows what's coming and when, decides how the important freight moves, pays a fair price for it and can see that price separately from the product cost. For some suppliers, that means full routing. For others, it means better information and a check on their freight charges.

What gets better with control

Three things improve. Cost, because the company can use its own negotiated rates and consolidate shipments from suppliers near each other. Visibility, because the company books or knows the carrier and the tracking reference for each PO. And receiving, because the company can schedule deliveries to match dock capacity and production needs.

Which freight terms give you control of inbound shipments?

Freight terms decide who arranges and pays for the shipment. To control inbound freight, move important suppliers from prepaid or prepaid-and-add terms to collect or third-party billing, with the company's routing instructions. The terms should be written on the purchase order and agreed with the supplier.

The main freight payment terms

Term Who books the carrier Who pays the carrier What the buyer sees
Prepaid (freight included) Supplier Supplier, built into the product price No separate freight cost
Prepaid and add Supplier Supplier, then bills the buyer A freight line on the supplier invoice, sometimes with a handling markup
Collect Buyer, or supplier using the buyer's carrier Buyer pays the carrier directly The carrier's invoice, at the buyer's rates
Third-party billing Buyer's chosen carrier Buyer, or a party the buyer names, pays the carrier The carrier's invoice, billed to the named party

FOB terms are a separate question

FOB terms, such as FOB origin or FOB destination, are commonly used to set where title and risk of loss pass from seller to buyer. Freight payment terms set who pays the carrier. The two are often written together, such as "FOB origin, freight collect," but they answer different questions. Check how your purchase agreements define them, and involve your legal or purchasing team before changing the terms used with suppliers, because they affect who files a damage claim.

Prepaid and add: the hidden cost

Under prepaid and add, the supplier uses its own carrier and rates, and the invoice line is whatever the supplier charges. Some suppliers pass through their cost; some add a handling fee or markup. Either way, the buyer can't compare the charge to a rate it negotiated, and freight cost ends up mixed with product cost.

Collect and inbound routing

Under collect terms with the buyer's routing, the supplier calls the carrier the buyer chose, and the carrier bills the buyer at the buyer's rates. The buyer can consolidate pickups, choose carriers it trusts, track every load and audit every invoice. The cost is more work: the buyer now manages carriers, invoices and exceptions for those shipments.

Which suppliers to move first

Not every supplier should change terms. Look at inbound shipments by supplier over the last few months and rank them by:

  • Freight spend: the suppliers whose freight lines cost the most
  • Volume: the suppliers that ship most often
  • Production risk: the suppliers whose late parts stop production
  • Geography: suppliers near each other, whose freight could be combined

A supplier high on two or more of these is a strong candidate. Small, occasional suppliers can stay on prepaid terms, with a simple check of their freight charges.

How do you set up supplier routing instructions?

Write one clear routing instruction document, send it to each supplier moving to inbound routing and confirm they'll follow it before the next PO ships. Then check compliance on every shipment for the first few weeks.

Step 1: Decide the routing by lane and size

For each supplier or region, set which carrier to use by shipment size: parcel for small boxes, LTL for a few pallets, and a call to the logistics team for anything near a truckload. Use only carriers the company has approved. For large shipments, the logistics team books the truck itself.

Step 2: Write the routing instructions

A good routing instruction document includes:

  • The freight terms that apply (collect or third-party billing) and the billing address for carrier invoices
  • Which carrier to use for each shipment size and how to request pickup: phone, email, portal or through the logistics team
  • What must go on the BOL: the PO number, the buyer's reference, the bill-to party and the freight class if known
  • Packaging and labeling rules: pallet size, labels showing the PO number, maximum pallet height
  • How much notice to give before shipping, and who to tell
  • Who to contact when the routed carrier can't pick up
  • What happens if the supplier ships another way: often, the supplier pays any extra freight cost

Step 3: Send and confirm

Send the instructions to the supplier's shipping contact and to the salesperson who handles the account. Ask for written confirmation. Talk through the first shipment by phone if needed.

How to talk to suppliers about the change

Most suppliers accept inbound routing without much trouble, because it removes work for them: they no longer need to find a carrier or bill freight. Some will push back, usually because freight markup was part of their margin or because their shipping team has habits. Explain the reason plainly, give a start date and offer a contact for questions. If a supplier asks for a lower product price in return for losing the freight line, that's a purchasing decision, and the freight data from the last few months will show what is really at stake.

Give suppliers time. A start date two or three weeks out lets them update their shipping instructions and tell their dock teams. Changing terms on a PO that's already being picked causes confusion and missed pickups.

Step 4: Update the purchase order

Put the freight terms and a reference to the routing instructions on every PO for that supplier. When the terms are on the PO, the supplier can't miss them, and the buyer has a basis for charging back non-compliant freight.

Step 5: Check the first shipments

For the first few weeks, check each inbound shipment from the supplier: was the right carrier used, was the BOL filled in, did the carrier bill the right party, did the supplier give notice? Fix problems one at a time, while the supplier is still learning the process.

Step 6: Handle non-compliance

When a supplier ships with its own carrier against the instructions, record it. If the cost is higher than the routed carrier would have charged, many buyers charge the difference back to the supplier, if the purchase terms allow it. Usually a reminder fixes the problem; repeated non-compliance is a purchasing conversation.

When the buyer books the pickup

For truckloads and production-critical parts, it often works better for the logistics team to book the pickup directly. The supplier confirms the ready date, the dimensions and the weight, and the logistics team quotes, books and tracks the load. This gives the most control, and is the same workflow as an outbound shipment, just starting at the supplier's dock. For a worked example, see quoting to booking one inbound load.

How do you get visibility on inbound purchase orders?

Tie every inbound shipment to a purchase order, and track each PO through four points: confirmed ship date, pickup, in transit and delivery. When the PO is the reference, purchasing, receiving and logistics all look at the same thing.

The four tracking points

  1. Confirmed ship date. The supplier confirms when the goods will be ready. If no confirmation comes a few days before the due date, follow up.
  2. Pickup. The carrier picks up and the BOL and PRO number or load number are recorded against the PO.
  3. In transit. The shipment is tracked against its expected delivery date, and any delay is flagged to purchasing and the plant.
  4. Delivery. The shipment arrives, is received against the PO and the POD is filed.

Getting the PO number on the shipment

The PO number is the link between the order and the freight. Ask suppliers to put it on the BOL, the packing slip and each pallet label. When it's missing, receiving can't match the freight to the order quickly, and the carrier invoice can't be matched to a PO either.

Ship date confirmations

Most inbound surprises start with a ship date nobody confirmed. Ask suppliers of production-critical parts to confirm the ship date a few days before it's due, and again on the day of pickup. If the supplier is going to miss the date, the plant hears about it while there's still time to plan. For more on following inbound loads, see how freight coordinators track inbound shipments.

When a critical part will clearly be late, the response needs to be planned across purchasing, the plant and logistics at once. For that situation, see coordinating the inbound recovery for a late production-critical part. The earlier the slip is known, the more of the recovery can use standard freight.

When the supplier still books the freight

For suppliers that stay on prepaid terms, ask for an advance ship notice: the carrier, the PRO or tracking number, the number of pieces and the expected delivery date. With that, the company can track the shipment itself instead of waiting for it to appear.

Inbound parcel

Small parts and samples often come by parcel, on the supplier's account, with the cost added to the invoice. If inbound parcel spend is significant, ask suppliers to ship on the company's parcel account, using the company's reference fields for the PO number. The same rules apply: tracking numbers tied to POs, invoices matched to shipments and a monthly look at cost by supplier.

Who should see what

Team What they need to see
Purchasing Ship date confirmations, late or missed ship dates, supplier compliance with routing
Plant and production planning Expected delivery date for critical parts, delays as soon as they're known
Receiving Today's and tomorrow's appointments, PO numbers, pallet counts
Logistics Every inbound load: carrier, status, exceptions, invoice
Accounts payable Carrier invoices matched to POs and rate confirmations

How do receiving appointments and cost tracking keep inbound under control?

Appointments control when freight arrives, and cost tracking shows what it costs. Both depend on the earlier steps: when the company knows the carrier and the PO, it can schedule the dock and check the invoice.

Set receiving appointments

Require every inbound truckload, and LTL shipments above a set size, to book a delivery appointment. Give carriers a simple way to request one: email, phone or a booking link. Set appointment windows by dock door and by the receiving team's capacity. Small LTL shipments and parcel can often arrive in an open window without an appointment.

Appointments spread the work across the day, avoid trucks waiting in the yard and reduce detention charges from carriers. Industry research shows how much waiting costs: the American Transportation Research Institute found that trucks were detained at 39.3% of stops in 2023, with more than 135 million hours of detention and $3.6 billion in direct costs to carriers. Those costs come back to shippers and receivers as detention charges and higher rates.

Hold carriers and suppliers to the appointment

Track whether inbound trucks arrive on time for their appointments. A carrier that keeps missing appointments is a carrier conversation; a supplier whose freight keeps arriving without appointments needs a reminder of the routing instructions.

Track freight cost per PO

For collect shipments, the carrier invoice comes to the company. Match it to the PO and the rate confirmation, and record the freight cost against the PO. For prepaid-and-add shipments, pull the freight line out of the supplier invoice and record it separately. Either way, the goal is a freight cost for every inbound PO.

Compare suppliers on landed cost

With freight cost per PO, purchasing can compare suppliers on landed cost: product price plus freight. A supplier with a lower unit price can be more expensive once freight is added, especially for small, frequent orders. This also helps when negotiating with suppliers about minimum order sizes or shipping frequency.

Common mistakes

  • Changing terms without routing instructions. Suppliers told "freight collect" but not which carrier will pick whatever they like, and the buyer pays at the carrier's undiscounted rate.
  • Moving every supplier at once. The logistics team ends up managing hundreds of small shipments that cost little. Start with the high-spend and high-risk suppliers.
  • Not putting terms on the PO. If the PO says nothing, suppliers follow their own habits.
  • No PO number on the BOL. Receiving and accounts payable can't match freight to orders.
  • Paying carrier invoices without matching them to POs. Inbound invoices for shipments that never arrived, or that were billed twice, get paid.
  • Forgetting claims. When freight terms change, who files a damage claim can change too. Agree on this with purchasing and suppliers before the first loss.

Combine inbound shipments

Once the company controls routing, it can combine freight from suppliers near each other into one pickup or a multi-stop truck. See how to consolidate shipments to save on freight for the methods, which work the same way for inbound.

An example: one supplier region

Consider a hypothetical manufacturer that buys from six suppliers within 100 miles of each other, each shipping prepaid and add, two or three LTL shipments a week. After moving them to collect terms with routing instructions, the logistics team books a weekly multi-stop pickup for the four largest and lets the two smallest ship LTL with the company's carrier. Each PO now carries a carrier, a pickup date and a tracking reference. Receiving gets the truck on a set morning with an appointment, and accounts payable sees a carrier invoice per load, matched to the POs on it.

How does Wilson, by Cartage, help control inbound freight?

Wilson, by Cartage, is an AI logistics agent that quotes, books, tracks, audits and pays freight for manufacturers and distributors, including inbound loads from suppliers. Traditional logistics software gives teams information. Wilson executes the work required to move shipments forward.

For inbound freight, Wilson handles:

  • Quoting and booking: Wilson requests quotes from the company's approved carriers for inbound pickups, compares them on total cost and negotiates toward the company's rate targets within approval limits. It tenders and books with written acceptance and a rate confirmation, and schedules the pickup at the supplier.
  • Documents: Wilson generates the bill of lading with the PO number and the right bill-to party, along with packing slips and pallet labels where needed.
  • Tracking: Wilson tracks each inbound load against its purchase order with the best source available for that carrier: carrier API or EDI, GPS or ELD data where the carrier shares it, the carrier's website by PRO number, and email or phone calls when nothing else is current.
  • Exceptions: When a pickup is missed or a load is delayed, Wilson contacts the carrier and tells the team in Slack, Microsoft Teams or email. It can start rebooking from the approved carrier list automatically within the rules, or after approval.
  • Invoices and payment: Wilson requests and files the POD, audits each carrier invoice against the rate confirmation and POD, and pays the carrier from the Wilson Wallet. Payments above the approval limits or outside the rules wait for a person.

Wilson books only carriers the company has approved. Cartage can suggest additional carrier capacity, but the company approves each carrier before Wilson uses it. Wilson can produce carrier-performance and lane-rate reports on request from the loads it runs, which helps compare inbound cost by supplier region. Wilson works across LTL, FTL, ocean, drayage, parcel and cross-border shipments; it is not a customs broker and does not clear customs.

Wilson replaces the TMS for freight execution and connects to the company's ERP, where the purchase orders live. Wilson works with SAP, NetSuite, Microsoft Dynamics 365, Oracle, Infor, Epicor, Sage, Acumatica and other ERP environments, with the exact connection depending on the customer's data flow and scope. Whether Wilson writes freight cost back to the ERP depends on scope.

Teams start with assisted execution and set the approval limits. Routine actions can run automatically within those rules as the workflow is proven. Every message, confirmation and change is kept in the shipment's change history.

Pricing

Wilson is free on Wilson's network: the shipper pays the freight rate and nothing on top. When a shipper keeps its own carriers, the fee is 2% to 0.5% of what Wilson pays them, falling with volume. There are no seat fees, no setup cost and no contract. Timing depends on scope: most teams start on a few lanes and expand from there.

FAQs

How do I get control of inbound freight from our suppliers?

Move important suppliers from prepaid-and-add terms to collect or third-party billing with written routing instructions, tie each shipment to its purchase order, require receiving appointments and track freight cost per PO. Start with the suppliers that cost the most or matter most to production. Wilson, by Cartage, an AI logistics agent, books, tracks and audits inbound loads with the company's approved carriers.

What does prepaid and add mean?

The supplier books and pays the carrier, then adds the freight charge to its invoice to the buyer. The buyer doesn't choose the carrier and often can't see whether the charge includes a markup.

What is the difference between freight prepaid and freight collect?

Under prepaid terms, the supplier pays the carrier. Under collect terms, the buyer pays the carrier directly, usually at its own negotiated rates and with a carrier it chose.

What is an inbound routing guide?

It's a document the buyer gives suppliers that says which carrier to use, how to request pickup, what goes on the BOL, how to label freight and who gets billed. It turns freight terms into clear daily instructions.

Do FOB terms decide who pays for freight?

FOB terms are commonly used to set where title and risk pass to the buyer. Freight payment terms set who pays the carrier. They're often written together but are separate questions, so check how your agreements define them.

Should every supplier move to inbound routing?

No. Start with suppliers that have high freight spend, ship often, are close to other suppliers or supply production-critical parts. Small, occasional suppliers can often stay on prepaid terms with a check of their freight charges.

What should we do when a supplier ignores the routing instructions?

Record it, remind the supplier and, if the purchase terms allow, charge back any extra freight cost. Repeated non-compliance belongs in the purchasing relationship.

Why do receiving appointments matter for inbound freight?

They spread deliveries across the day, prevent trucks from waiting in the yard and reduce detention charges. They also let receiving plan labor for the freight actually coming.

How do we track inbound freight cost?

Record the freight cost against each purchase order: from the carrier invoice for collect shipments, or from the supplier's freight line for prepaid-and-add shipments. Then compare suppliers on product price plus freight.

Who files the claim if inbound freight is damaged?

It depends on the terms agreed with the supplier and on who contracted the carrier. Decide this with purchasing and the supplier before changing freight terms. Under federal law, carriers can't require less than nine months to file a claim.

How long does it take to move a supplier to inbound routing?

It depends on the supplier, but giving two or three weeks' notice and checking the first few shipments closely works for most. The routing instructions and PO terms should be in place before the first routed pickup.

Sources

Bring three inbound purchase orders from your top suppliers and see how Wilson would book and track them.