Varun Reddy   06th Jul 2021

how-freight-audit-software-works

Freight Audit Software Solution

The freight audit software solution will help companies save costs incurred through invoices. This will, in turn, have a huge impact on their annual profits.

Nowadays charges from various transporters are negotiated and impacted by the oil market. Without a firm understanding of all the intricacies of the shipping industry, a company is always at risk of being consistently over-charged. That is why many businesses turn to a freight audit software provider or a freight audit and payment company. Audit companies handle the laborious task of auditing their freight bills.

Most of the companies will not be able to handle the massive task of processing, organizing, auditing, and paying the carrier companies. It is not only time-consuming but also requires dedicated internal staff. The opportunity to maximize your profit margin through business intelligence will be missed if your company does not take advantage of the intelligence gained from the data.

Freight Bill Audit and Pay

So freight bill audit and freight payment software is an essential component of any business. Many companies do not utilize technology to manage freight bills, resulting in a lost opportunity for multiple cost savings.

The old-school way of manually processing freight bills and hoping for the best overlooks many important and potentially expensive factors. Some companies shipping and receiving more than hundreds of shipments every month, resulting in paperwork in different formats from carriers. In the long run, this will become overwhelming, and inevitable errors get cropped in either from human inaccuracy or a processing mistake.

Discrepancies In Freight Bills

But if your company is being regularly wrongly billed, the costs add up quickly. Most companies do not have the resources to devote to auditing every single bill, so some will resort to a random check, giving the organization only a sample of the entire picture. This will result in risking the forfeit of any lost capital due to overpayment, errors, hidden fees, or redundant costs.

It should be clear that a sound strategy is a priority when it comes to Freight Auditing and Payment. Experts estimate that a company can expect freight charges to typically represent up to 10% of a company’s total cost of goods. It is a significant enough portion to pay attention to and to apply the most effective tactics to minimize.

Freight Paper Invoices

Paper invoices run the risk of becoming lost, and a company loses the ability to analyze bills and data. The cost to internally process and pay freight invoices can be measured at around $11-$12 per invoice. Along with the cost of allocating manpower to perform this laborious task, human inaccuracies or inattention to unforeseen factors may choke even the most well-intentioned internal department. Also, the opportunity to file a claim for reimbursement for any error is typically 180 days and must be handled on time.

Freight Bill Auditing Process

The freight audit company follows a specific process to confirm all inaccuracies are noted and corrected. It provides the client with a detailed evaluation of their shipping and receiving procedure based on ad hoc data. The process begins when the shipping invoice is received either manually or through EDI. The freight audit company will then verify the bill, inspect for errors or inaccuracies, and ensure that:

  • The invoice has not been previously paid or is not a duplicate,
  • Is indeed the responsibility of the shipper to pay,
  • Any tariffs were calculated correctly,
  • Accessorial charges are legitimate and
  • All necessary documentation such as the Bill of Lading and purchase order numbers are included.

They will file a claim to be reimbursed for the mistake or oversight whenever inaccuracies are spotted. If they are assigned to make the payments as well, they will handle the processing of the bill to ensure that it arrives as scheduled.

Audintel’s role :

We at Audintel have a freight audit software solution, which consists of various audit checkpoints to capture any discrepancies done by the carriers. We provide business intelligence reporting which can be used for detailed insights and also plan a better strategy when compared to the competitors. For further queries, please visit Audintel or mail to info@audintel.com.