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Everything You Need to Know About Freight Audit

Logistics Tech Outlook | Friday, June 10, 2022

In today's competitive logistics environment, having visibility into cost and performance, streamlined processes, and positive shipper-carrier relationships in the freight audit department can provide shippers with the competitive advantage they desire.

Fremont, CA: Going through reams of freight bills to examine, process, and pay is an unpleasant and typically low-priority task for most logistics workers. Shippers must keep expenses under tight control while transferring shipments to meet service needs. When you include global or national disruptions, tariffs, trade concerns, and many other issues, transportation and logistics teams have their work cut out for them. Knowing what products are coming in and going out is a top priority.

Freight auditing has grown in importance. At scale, manually auditing freight bills is extremely tough. The procedure is time-consuming and fraught with human error. Due to the volume of freight bills a large, complex shipper receives often has a threshold for which accounts to spend time auditing. In other words, they allow a specific number of wrong bills to be processed and paid even when they are aware of their error.

Cost savings

Cost reductions that can be tracked directly to the P&L due to a change in process or year-over-year savings on the same volume of purchased freight are two cost savings that highlight the relevance of a freight audit.

Process improvement

By automating the process, minimizing manual labor, and permanently resolving reoccurring errors, establishing a freight audit process or engaging with a freight audit solution provider can assist expedite and improving the freight audit process.

Data accessibility

A data-first freight audit service gives transparency and visibility into a shipper's freight expense, allowing real-time access to invoice charge breakdown detail. More advanced suppliers can view shipment, tracking, and billing data.

Payment accuracy and timeliness

Auditing freight bills allows for correct and timely payments to carriers, increasing the shipper-carrier relationship and communication and allowing the shipper to become a Shipper-of-Choice. Payment accuracy helps in the better freight flow, ensuring correct delivery of the shipment.

The advantage in the marketplace

In today's competitive logistics environment, having visibility into cost and performance, streamlined processes, and positive shipper-carrier relationships in the freight audit department can provide shippers with the competitive advantage they want.

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