How Adopting Freight Audit and Payment Software Helps Save Money and Time

Logistics Tech Outlook | Tuesday, May 31, 2022

Outsourcing your freight audit and payment responsibilities to third-party logistics can relieve a lot of stress.

FREMONT, CA: An error occurs in one out of every four freight bills that could greatly affect the company's bottom line. Logistics catch numerous errors a day in clients' invoices. Unfortunately, these errors would often go unnoticed and uncorrected without a daily manual freight audit by the company and its staff.

Manual auditing and payment are time-consuming and often require additional administrative staff time. Companies that lack these resources can save time and money by outsourcing Freight Audit and Pay through a third-party logistics (3PL) company.

What is Freight Audit?

A freight audit is a process where the company's freight bills are assessed, adjusted, and verified for their Correctness.

The first step is to check the company's invoices for errors. An 8-point system reviews carrier information, shipper information, mileage, Bill of Lading, shipment weights, tracking number, price, and discounts. The invoice will also be examined so that it has not already been processed to ensure no duplicates.

If errors are identified on the shipper's invoice, their chosen freight audit and payment Company will contact the carrier to ensure that it is verified and issued a new invoice.

A freight audit service ensures that the actual freight invoice matches what was quoted at the time of shipment.

What is Freight Pay?

Freight pay is an accounts payable service for transportation invoices. That might look like relying on a logistics or transportation manager to round up all of the various carrier invoices and then have the accounting team tackle processing each separate payment by a direct clearinghouse or cutting individual checks.

As a shipper, one will see an immediate return on investment. Freight audit and pay save money in two ways. First, it allows one to catch those data errors discussed above. Secondly, it helps one eliminate unnecessary labor costs. In addition, partnering with a third party logistics gives the peace of mind those firms are always paying the correct amount for their shipments.

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