Understanding when to outsource your freight operations is key to being competitive in the face of globalization and to achieving cost-effective and data-driven freight operations. Freight bills are complicated, and as the firm expands, so does the complexity of freight audit and payment. Making it more difficult to effectively manage and evaluate transportation costs.
Outsourcing freight auditing does result in cost savings and improved visibility with a more modern system capable of handling thousands of invoices.
What does it mean to outsource a freight audit?
Freight auditing is the practice of inputting, analyzing and validating freight bills for accuracy. The freight bill is an invoice given by a carrier to the shipper. It outlines the complete charges for the freight shipment.
Outsourcing freight auditing entails handing over the freight audit task to a specialized third party. The audit of freight invoices and bill pay process is being outsourced to 3rd party specialized auditors; thereby reducing internal resources. A freight audit provider already has the groundwork in place, as well as modern tools to process data from all modes.
Outsourcing to an analytical-driven business partner that can input, process, and normalize data before using a unique platform to give actionable insights may assist enhance all aspects of operations.
How does outsourcing freight audit work?
A third-party freight auditor receives its clients’ freight bills directly from carriers to start the auditing process. After receiving the bills, they are loaded into the freight auditor’s system, either manually or by electronic data interchange (EDI). Then, the bills are audited for accuracy when they are entered. Auditors use correct agreements to examine bill validity, duplicate payments, base rates, discounts, and accessorial charges. If an overcharge or mismatch is detected, the auditor either files a claim or attempts to correct the problem. Uncertainties in pre-audited invoices are addressed before payment. After completing the audit, the charges are processed and verified, and the bills are paid.
The benefits of outsourcing freight auditing:
The following are some of the primary advantages:
A manual examination of a freight invoice can be time-consuming and labor-intensive because of the variety and volume of information they contain. Then there’s the issue of appropriately allocating transportation and supply chain expenditures. Supply chain managers are frequently forced to assist accounts payable departments by performing this task themselves. This makes them devote important time away from overseeing freight operations.
Audintel, a freight audit service, has created solutions to simplify the massive work of auditing freight invoices. Outsourcing freight auditing reduces the need for internal employees to undertake this work, freeing up your back office to tackle other activities. Also, allowing your teams to focus on maintaining a lean, robust, and efficient supply chain.
Higher level of transparency:
Internal freight audit and payment have various flaws, including a lack of transparency and a bigger risk that stakeholders must deal with. Third-party providers provide full transparency into cost structures and verification methods to shippers and freight forwarders. As well as critical transportation expense data to help them make rational decisions.
Data-Driven Insights gathered from reporting tools can help businesses make sound cost-cutting decisions. Data analytics is a constant goal for freight payment companies so they can provide greater insight from their data.
Reduction in the cost of operations:
You will undoubtedly save a significant amount of money if you outsource freight auditing services. This is because the freight along with the audit payment alternatives will be automated. Your accounts department would not have to waste time validating payments before approving invoices.
You won’t have to worry about your visibility or compliance if you outsource the responsibilities to the best freight audit and payment services. This means you’ll never have to rely on an inaccurate freight expense again. The business you select should have extensive experience operating freight auditing systems.
Outsourcing freight audit delivers excellent outcomes in terms of cost savings, resource efficiency, and improved business or customer focus. With its powerful analytics and automation platform, Audintel, as an outsourcing audit business, delivers actionable and agile management of every part of your supply chain. If you would like to learn more about our freight auditing methods and systems, please contact us at [email protected] or call us at +1 (619) 354 8539 or visit the Audintel website.