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A freight audit is a commercial procedure that examines, adjusts, and verifies the integrity of a company's freight invoices.
Fremont, CA: Freight auditing is essential for every shipper to maintain a system of checks and balances. A shipper may confirm that they're receiving invoiced for what was agreed upon by reviewing freight bills and that no hidden or exaggerated fees are getting paid. A third-party firm specializing in freight audits and payment forwarding often performs this task. While freight auditing has existed for a while, there are specific increasing trends in automation that aim to speed up the process, decrease errors, and save businesses money.
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A freight audit is a commercial procedure that examines, adjusts, and verifies the integrity of a company's freight invoices. Many specific stages must get done during the audit. The first step is to examine the corporate invoice. It verifies the shipper and carrier information, cargo weights, miles, tracking number, Bill of Lading, discounts, and final price. The invoice was also checked to ensure that it had not previously got paid. If errors get discovered, they get corrected before payment gets submitted.
A 3PL or shipper would spend 70 percent of overall invoicing time processing documents, auditing, and finishing the payment procedure to complete this process. Examining freight bills is a complicated and time-consuming procedure, but a few digital trends minimize the time spent on this critical stage.
Many industries, along with IBM, have developed new software to help automate the invoice approval process.
The freight audit payment system (FAP) can track freight bills, surcharges, vouchers, freight carriers, and 3PL providers. FAP allows businesses to free up workers to improve freight forwarding or provide customer service. Using these systems evaluations also promotes openness throughout the supply chain, resulting in a trickle-down impact to prevent future 'mistakes.' Numerous organizations that have used this software have reported a 20percentage decrease in freight invoice expenses.
As technology advances, the method of completing freight auditing & payments becomes more efficient. Several shippers have questioned whether they can - or should - take on this responsibility themselves. How does this affect 3PLs and other freight auditing & payment firms? Shippers aren't longer content with providers that merely dot the "I's" and cross the "T's." Shippers want to consult services that will help them save money, enhance transportation efficiency, and limit the possibility of inaccurate billing.
Freight auditing businesses must increase their service offerings to please their clientele. Several successful 3PLs employ online data mining & analytical services to help shippers maximize their usage of TMS or transportation management systems. Others are reviewing the shipper's processes and strengthening ties with carriers.
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