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The freight bill audit procedure offers much more than simply identifying problems and spending less. Shippers can use the information from shipping invoices and payments for their gain, making it a value-added operation. Shippers can gain insights, leading to other potential business process modifications.
Fremont, CA: It would be ideal if every freight invoice was correct, and the shipper could pay the bill with confidence that the amount stated and the details on the invoice were accurate. Unfortunately, this is not the case. Learning how to read a bill of lading or cargo invoice takes time. In the beginning, mistakes are unavoidable. There are solutions for this, such as freight auditing; even organizations without in-house freight auditing experience can profit.
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A freight audit examines a freight bill and makes any required changes to assure its accuracy. This carrier reconciliation checks the invoice to the agreed-upon terms and the services delivered and received, guaranteeing that the quantities and conditions charged are correct.
The freight bill audit procedure offers much more than simply identifying problems and spending less. Shippers can use the information from shipping invoices and payments for their gain, making it a value-added operation. Shippers can gain insights, leading to other potential business process modifications. The audit is more than a checklist; it is a cost-cutting measure and a piece of corporate intelligence.
Types of Freight Audit Process
An audit may be of different types, which may include:
Manual Freight Audit Process:
Manual audits take time, and errors are expected since the task is tiresome and challenging to contrast and recall. A manual audit makes less sense as the quantity of shipping receipts increases. The manual technique increases the likelihood that batches of invoices will be randomly examined, leaving room for errors to sneak through. Manual audits are only as good as the person performing them. It also has an opportunity cost because the individual performing the audit may work on other objectives, especially if done in-house.
Automated Freight Audit Process:
Software is used in automated freight bill audits. Whether your organization has in-house software or an auditing company employs it, auditing software gives better results if your version is updated. Software solutions can be electronically integrated with freight carriers, making freight audits and recovery quicker and more effective.
Combination Freight Audit Process:
The combined technique enables the software to perform most of the auditing work. Any exceptions or concerns are left for human examination. If any of these ways contains problems, the company or software will contact the freight carrier to obtain a rectified shipping invoice or reclaim the invoice discrepancy amount.
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