Best Practices in Freight Audit and Payment

Linda James, Logistics Tech Outlook | Saturday, May 21, 2022

Good freight audit procedures will ensure that companies have an efficient logistics data warehouse to assist them with tactical and strategic decision-making.

FREMONT, CA:Great freight audit procedures and activities are carried out on two platforms: cyberspace and the hands of experienced logistics professionals. While not all Accounts Payable department falls into this category, new technology allows companies of every size to benefit from digital and outsourced solutions.

There's a lot more at stake as freight charges pay for ten percentage of a company's overall spend and 30 percent of all freight invoices are inaccurate. Trying to separate the right tools from the hype can be a time-consuming process for accounts departments. If a company is new to the logistics industry, it might not know where to begin.

The right tools can help build a solid logistics "data warehouse" that can help make tactical and strategic decisions. It's crucial to have data to handle the logistics activities on a regular and long-term basis, and providing good data is even more significant.

The primary functions that freight auditing tools should provide

There are several accounting tools on the market that make this claim back-office work easier. Even though assisting in calculating metrics such as payroll, compliance and security, insurance fees, and invoices is undoubtedly beneficial, it is still just a foundational level of performance. Number crunching is just the beginning of what the tools can do, including improved operating efficiency and decreased team effort.

Machine learning is a crucial feature in some sophisticated accounting tools that put them in the top tier. These programs can learn patterns, self-regulate, and extend their capabilities due to artificial intelligence.

Freight accounting tool can also provide more than just a standard bookkeeping program. The best solutions can be customized to match the requirements of specific companies and are planned and operated by teams who know every aspect of freight and logistics.

The multiple benefits of outsourcing freight accounting

Finding a dependable freight audit partner to assist with freight-related financial activities can be difficult, but they must find a firm that is financially stable and has a diverse customer base. As they do business with Fortune 500 companies does not mean they are "dependable". It is necessary to examine their financial and customer service strengths to determine whether they are stable organizations.

A dependable freight audit partner can also help save time and money, which are two of the most valuable resources. First, by delegating some of the financial responsibility to an outside team who is solely focused on that task, the company can save time on an already overburdened schedule.

Second, a higher level of third-party attention reduces the possibility of an overworked in-house team making avoidable (and costly) errors. With less on their shoulders, the employees become more efficient, and that efficiency leads to profits.

See Also:Top Freight Audit and Payment Solution Companies

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