What to Consider While Choosing Freight Audit and Payment Services

Logistics Tech Outlook | Wednesday, July 21, 2021

A freight audit and payment solution that combines the knowledge of industry experts with a modern, cloud-enabled tech stack can minimize the overall transportation spend. 

FREMONT, CA: Any global shipper must have a freight audit and payment system in place. The effectiveness of the freight audit and payment procedure can directly impact expenses for organizations that engage in these complicated supply chain networks. The process is complex in general, and poor management will increase the company's transportation costs.

For avoiding potential overcharges and enhancing the company's bottom line, a thorough understanding of transportation charges and the shipping sector as a whole is essential.

Why Freight Bill & Audit Pay (FAP) is Essential

Managing and processing FAP, mainly manually, can be a time-consuming and massive undertaking for businesses. This procedure leads to inefficiencies, errors, and unnecessary expenses for organizations that send and receive millions of shipments every month, often across many systems and carriers.

As it is extremely difficult to manually audit every bill, the firm may overlook frequent miscalculations and inaccuracies in cost estimates, which can quickly mount up. Using logistics or freight forwarding services might be just as dangerous.

The Benefit of Freight Audit & Payment Services

Irrespective of location or mode of transportation, freight audit and payment services take on the burden of monitoring the contract and route compliance and managing all claims. The companies will gain a range of benefits that in-house FAP and TMS software can't provide if they choose the proper vendor for their company.

Improved Transparency

Data that is accurate and actionable must be the basis of the business decisions. Gaining visibility into various factors, such as fuel surcharges, taxes, volumes, and utilization, is the first step in understanding and controlling transportation expenditure. A freight audit and payment service with critical tracking and monitoring features ensure access to vital data for essential insights that affect the bottom line.

Growth Aligned with the Company

The business is constantly evolving, which implies that the transportation expense management journey is changing as well. With scalable technology, a strong product roadmap, expert-managed services, and a forward-thinking investment plan, an experienced freight audit, and a payment provider with robust solutions can grow with the firm.

Cost Savings

Successful freight audits and payment processes reduce inefficiencies and errors that lead to increased transportation expenditure. Companies will have the proper help and data to minimize balance dues and rebills if they depend on a provider with experience in freight audits and advanced technology solutions. As the journey progresses, investment in a robust FAP solution will help the companies to realize immediate savings of 3-5 percent and total transportation cost control, which unlocks savings of 10-15 percent.

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