The Freight and Logistics market in the US is the backbone of its economy. Increasing globalization and e-commerce growth are fuelling demand for efficient freight and logistics solutions.
According to news reports, freight activity in the US is picking up after a two-year slump. Further, the United States Freight and Logistics Market may grow to USD 1.29 trillion by 2029. Managing freight invoices becomes complex as the shipping volumes increase. Evaluating and analyzing vast amounts of freight data and validation is time-consuming. Many resources are required to identify and resolve freight invoice discrepancies.
In such a scenario, shippers often wonder about the accuracy of freight payment to the shipping carrier. There is a constant worry if they have been overbilled or inaccurately billed. With freight audits, shippers get an accurate idea of their transportation costs. This blog article will focus on the benefits of freight audits. In addition, we will discuss freight audit and payment processes and their importance in logistics.
Freight Audit benefits
The purpose of freight auditing is to examine each freight invoice thoroughly. In addition, audits ensure the invoice conform to the details in freight contracts. A freight audit examines shipping rates, fees, weights, discounts, etc. and any mistakes in freight billing help shippers resolve the issues with the shipping carriers.
Freight audits have numerous benefits. The primary of them include:
- Optimizing business operations with meaningful data
- Reducing shipping expenses
- Increasing visibility on transportation spend
- Avoiding unexpected surcharges
- Saving time for companies
- Enhancing customer satisfaction
- Ensuring compliance with regulatory requirements
In addition, freight audit services can request corrected invoices for overcharging. For more benefits of freight audits, you can read our earlier blogs here and here.
Now that we know the benefits of freight audits. Let us discuss-
Freight Payment process
The shipper makes a payment after a freight audit determines the accuracy of a freight bill. It is known as freight payment. However, if there are errors in the freight bills, the shipper may pay the amount after billing adjustments.
The freight payment process starts with a carrier invoice receipt from the shipping carrier. The freight invoice validation is by verifying the invoice data. For example, cross-checking the customer invoice number, purchase orders, bill-of-lading (BOL), etc.
Further, conducting a freight audit ensures
- Accurate freight rates and surcharges
- Applicable discounts
- Invoice number matching customer or shipper data
- Correct freight weights
- Shipping addresses are correct
Inaccurate freight costs are a part of the exception management. Further, the freight payment is by the agreed method to the shipping company. During payment, there is an accounting of cost allocation in the ledger. Data capture is helpful for future freight payments. It helps in understanding ways to improve the business.
What is the Freight Audit and Payment process?
It is the auditing and payment of freight bills. Many Freight Audit and Payment (FAP) software are available for shippers to use in-house. But, it requires intense training of resources for optimum use. However, outsourcing Freight Audit and Payment (FAP) process to FAP service providers can strengthen the supply chain operations of businesses.
Freight Audit and Payment processes use automated systems and Business Intelligence tools. Automating invoice receipts eliminates paper documentation and filing. It allows accurate audits and efficient, detailed cost allocations. Freight audits can identify duplicate fees and verify the accuracy of freight charges. It can keep track of freight carrier performance and compliance according to the contracts.
Further, Business Intelligence tools analyze data to help shippers reduce transportation costs. It provides visibility for companies to improve their shipping processes. It looks at the freight invoices minutely down to each order line-wise. Consolidating freight invoices also helps in reducing transportation costs for shippers.
Audintel provides the most comprehensive “Line-Item” invoice freight audit for its clients. Our actionable, agile platform and customizable dashboards provide freight data to shippers. Enormous information in graph representations and shipping reports is easy to understand. Businesses use the freight data to streamline their shipping operations and save money.
What impact does Freight Audit and Payment have on Logistics?
Transportation of goods from one point to another requires effective management. Different transportation modes, such as road, rail, sea, and air, are available for freight shipments. Fuel prices, labor costs, route efficiency, and many factors influence transportation costs. Moreover, geopolitical events and economic conditions disrupt transport operations, affecting shipping costs.
The digitalization of transport operations can control transportation costs. Intelligent transportation management systems can track shipments in real time. It can minimize detours, reduce last-mile delivery time, and reduce shipping expenses. Further, Transportation Management Systems (TMS) increase full-load shipping by load planning and vehicle capacity management.
Logistics payment optimization is necessary for fast and efficient supply chain operations. Freight Audit and Payment systems improve freight operations efficiency. It automates invoice processing, payment, and transportation invoice reconciliation. Freight invoice auditing provides cost-saving opportunities to companies. Shippers can monitor and measure their Key Performance Indicators (KPIs), such as service levels, delivery time, etc. Freight Audit and Payment processes provide insights into a shipper’s freight spend.
Freight payment processing is possible by Freight Audit and Payment process. It validates carrier invoices against agreed terms to ensure compliance. Freight audits provide insightful analysis of freight data to stay ahead of competitors.
Audintel’s Freight Audit advantage
Our latest technology scrutinizes past and present freight invoices for any mistakes. We also oversee any deviations by carriers from the agreed freight rates, discounts, and accessorial charges in freight bills. Our intuitive dashboards customize shipping reports for clients. Freight Audits with stronger carrier relationships avoid delays and disruptions during shipping.
Audintel’s systems provide real-time visibility of transportation costs. Businesses can make informed decisions about their shipping spend. Our next-generation automated platform audits freight invoices against any unwarranted charges. Shippers get easy access to shipping data to improve their backend processes. We understand a business’s needs and its logistics inefficiencies.
Final remarks
In Logistics management, financial data analysis is vital. It includes information regarding payments, transportation, warehousing, and more. Effective financial management is necessary for greater profitability and operational efficiency in logistics. The logistics industry is constantly trying new ways to control expenses with efficient movement of goods.
Freight Audit and Payment systems provide cost-effective opportunities to logistics businesses. The FAP system prevents financial discrepancies and strained relationships with shipping carriers. Freight audits thoroughly review freight invoices for errors and facilitate prompt payment processes. In addition, FAP systems optimize transportation strategies, comply with regulatory requirements, and resolve disputes with carriers.
Businesses partner with Freight Audit and Payment service providers that provide up-to-date solutions. FAP services use advanced technology that uses data analytics and reporting capabilities.
Audintel has the expertise and state-of-the-art technology to handle freight bill audits and payment processes. We understand your business needs, including the complexities of freight expense management. Our skilled freight auditors help claim refunds from shipping carriers due to inaccurate billing. Audintel’s services streamline the freight audit process for businesses without any hassles.
If you are curious about how we handle freight audits and payments, call us at +1 (619) 354 8539. In addition, our Audintel website gives information on freight auditing and other services.