In August 2023, the National Motor Freight Traffic Association (NMFTA) introduced the first standardized API for Electronic Bill of Ladings (eBOLs). With the participation of over 70 affiliates – including Old Dominion – shippers now require only a single API configuration to function across all participating carriers, TMS providers, and 3PLs.
The NMFTA’s Digital LTL Council unveiled its advanced eBOL 2.1 standards in March 2024. Here are three reasons why your business will profit from adopting this standard.
Adopting eBOL Standard Gives You Flexibility
The eBOL API standard grants shippers the advantage of integrating one API across multiple carriers, TMS systems, or 3PLs. Previously, shippers had to devise several programs to incorporate their APIs into carriers’ systems, potentially deterring eBOL adoption. Now, the process is streamlined, allowing shippers to save time and resources while also increasing their flexibility in working with different carriers.
In addition, eBOL APIs allow for a more efficient onboarding process for new carriers. By using the standardized API, carriers can easily connect with shippers without needing to develop their own integration methods. This allows for quicker and smoother setup processes, ultimately leading to faster service and improved customer satisfaction.
One eBOL Standard Minimizes Errors and Cost
The digital transformation within the LTL industry has progressed slowly, with many shippers still relying on handwritten bills of lading as the standard practice. Currently, there are numerous methods to transmit eBOL data via API, making it challenging for carriers to comprehend each format. This leads to handwritten errors, inaccurate billing, and inefficient data transmission.
Consider a case study from a large LTL shipper in the commercial printing sector. Despite having an enterprise TMS, they were largely relying on manual processes for operations. However, after the implementation of API connections into their TMS, they digitized their shipment processes, including their Bills of Lading, resulting in a significant $250,000 per year reduction in costs by minimizing 700-900 daily manual calls*. They experienced speedier and more efficient shipments, fewer manual errors, and enhanced customer communication.
Additionally, the Digital LTL Council reported that shippers can expect to see an average of 2-4% cost savings per shipment once full adoption of the eBOL. The savings come in the form of greater network efficiency and on-time performance, improved carrier performance, decreased dwell times, reduced safety stock levels, and better worker efficiencies. Industry-wide, this means an estimated savings of $470 million.*
One eBOL Standard Improves Communication and Service
With a single digital format, eBOL data can be transferred and processed more quickly and efficiently, saving valuable work hours. Not only does this clean, concise data format improve communication between shippers and carriers, but it also enhances accuracy, leading to improved carrier service.
The NMFTA is continuously developing more APIs to assist with various business processes, including in-transit visibility, tracking, and rating. You can familiarize yourself with them here.
In a world where both speed and service quality matter, implementing a standard eBOL can help you optimize both. Enhanced service will only refine your processes over time, strengthening your relationship with your carrier and clients.
*According to NMFTA’s July 2023 Digital LTL Council Case Study.