Encounter Logistics was stuck in a back-office bottleneck. Factoring loads took hours, invoices were prone to errors, and weekly cash flow spikes left little room for growth or stability. The result? Frustrated carriers, strained resources, and an unsustainable system that kept the team buried in paperwork instead of building relationships.
Enter Denim. By automating processes and simplifying operations, Denim helped Encounter Logistics turn things around:
- Time Savings: Factoring loads now takes less than 5 minutes, down from 2–3 hours.
- Avoided adding headcount while scaling: With only 5 employees, the team avoided hiring for 15 additional roles. Now, they’re focusing on hiring roles for business development, not manual data entry.
- Improved Carrier Payments and Revenue: With more reliable ACH payments and QuickPay options, they’re now generating revenue that offsets their factoring costs.
- Faster Credit Approvals: New customer credit requests are now approved within hours, instead of days.
Encounter Logistics has overcome inefficiencies, strengthened carrier relationships, and positioned itself for sustainable growth with the help of Denim.
About Encounter Logistics
Founded in 2009, Encounter Logistics initially managed overflow for an asset carrier. By 2016, the company began operating independently, driven by the vision of principal partners Donald Browning and Paul Burton. Their dedication to building strong relationships and expanding the business laid a solid foundation for future growth.
In a strategic move to enhance efficiency, Justin Sowa joined the team to optimize computer systems and workflows, embracing a technology-forward approach. Last year Tom Burke joined as the Director of HR and Compliance. With a lifetime of experience in the HR field, Tom brings a wealth of knowledge and expertise to the team. By 2024, Encounter Logistics had evolved into a full-fledged 3PL provider.
Guided by core values of passion, proactivity, and personability, Encounter Logistics fosters deep, family-like relationships with its carriers, proudly referring to them as their “lifeblood.” With a private carrier network and a steadfast commitment to innovation, the company skillfully balances traditional values with modern, forward-thinking solutions.
The problem: manual processes stifling growth
Encounter Logistics faced severe inefficiencies in their back-office operations. Each load required extensive manual paperwork, from scanning and uploading documents to combining files into PDFs and re-entering data into their previous factor’s portal. This repetitive process often took 2–3 hours per load and was prone to errors, including incorrect billing amounts that led to rejected invoices and the need to rebill customers.
The workload left little time for strategic tasks or relationship-building with carriers and customers. Payment delays caused frustration, with carriers frequently following up about lost or late checks. As Justin put it, “We had a racecar engine in a Pinto,” underscoring the gap between their potential and the limitations of their outdated systems.
Encounter Logistics needed a streamlined solution to reduce errors, speed up payments, and free their team to focus on more meaningful tasks.
Choosing Denim
When their previous factoring company refused to support an integration, Encounter Logistics turned to Tai Software for advice and was introduced to Denim. From the start, Denim’s team, led by Dan Igoe, provided hands-on support, carefully explaining their offerings and managing the transition seamlessly.
“Switching factoring companies is a big decision, but Denim made it smooth,” Justin shared. Within just 10 days of signing, Encounter Logistics was fully operational with Denim, a contrast to the slow communication they experienced with their old factor.
Denim’s proactive approach and seamless integration with Tai proved to be the right fit, giving Encounter Logistics the efficiency and automation they needed to scale.
The benefits of working with Denim
Lean and streamlined operations
Denim and Tai Software have improved Encounter Logistics’ back-office efficiency, providing dual benefits of saving time on invoicing and reducing the need for additional staff. Factoring, which previously took hours, now takes less than five minutes per load - a 91% increase in efficiency. After reviewing invoice details in Tai, the team simply clicks “factor,” and Denim handles the rest, including document verification, invoicing, and carrier payments.
This streamlined process has significantly reduced errors while freeing up the team to focus on meaningful work.
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“We still have the same number of staff, but now we have time to talk to our carriers and build better relationships,” Justin explained. “Before, we spent so much time on tasks that kept us running but didn’t help us grow.”
By automating repetitive tasks, Encounter Logistics avoided a 75% increase in staffing. Under their old system, they would have required 20 employees to manage the workload. Today, they operate efficiently with just five, allowing them to invest in specialized roles like business development.
“Automation has completely changed how we work. Instead of just keeping the heart pumping, our team can focus on growing the business,” Justin shared. With Denim and Tai, Encounter Logistics has not only streamlined their operations but also built a leaner, more strategic team.
QuickPay program that pays for itself
Denim’s QuickPay program has added financial flexibility to Encounter Logistics while improving carrier satisfaction. When carriers onboard, they are offered several QuickPay options, which allows them to get paid faster for a small fee. Denim automatically deducts the fee and adds the extra revenue to Encounter Logistics’ advance. Since Denim does not charge a fee for QuickPay, Encounter keeps 100% of the profits.
“We set up our fee structure so when a carrier selects QuickPay, the fees cover our factoring cost,” the team explains. “Anytime a carrier QuickPays, that load is essentially factored for free—plus, we earn a little extra to cover other costs.”
Switching to Denim also modernized their payment process. “Previously, all carriers were paid via check because our old factor couldn’t send ACH payments,” the team shared. “Now, almost all our carriers are set up for ACH payments, and they no longer have to worry about checks getting lost in the mail.”
This combination of ACH payments and QuickPay has significantly increased carrier satisfaction while creating an additional revenue stream for Encounter Logistics.
Financial stability and insights
Denim has helped Encounter Logistics achieve greater financial stability and visibility. Previously, cash flow was unpredictable due to weekly job uploads with their old factor, leading to spikes and challenges in paying bills. Now, with daily uploads through Denim, cash flow is consistent, allowing them to set bills on autopay and even build a reserve fund for added security. “We don’t have cash flow spikes anymore, and we can see growth trends without running a bunch of math,” Justin shared.
Faster credit approvals have also streamlined operations. Denim’s credit team responds to new customer requests within a few hours, a significant improvement over the two-day turnaround with their previous factor.
The Denim dashboard has become a valuable tool for financial planning, offering insights into DSO, customer payment trends, profitability, and monthly projections. “The benchmarking tools help us assess performance and guide decision-making,” Justin noted.
With consistent cash flow, faster approvals, and actionable financial insights, Denim has become an integral part of Encounter Logistics’ success.
A Partnership That Drives Growth and Efficiency
With Denim, Encounter Logistics has turned a once tedious, manual process into an efficient, automated operation. The partnership has delivered time savings, financial stability, and improved carrier relationships while allowing the company to scale without additional overhead.
“Denim is constantly adding new things, and we’re excited to continue our partnership,” Justin shared. Encounter Logistics is now better equipped than ever to grow and succeed in a competitive industry.
Ready to simplify your operations and achieve your goals? Get started with Denim today.
