With rising e-commerce consumer demands, there is an increase in freight and logistics services. Freight transport involves shipping goods or cargo by trucks, ships, or aircraft. According to some reports, the Freight Transportation Services Index rose 0.9% from last year. The freight transport market (maritime) may grow to USD 395.17 billion this year. Further, the air cargo industry is steadily increasing YOY, about 3.2%, in early 2025. These statistics show that freight demand is rising every year.
Freight transportation creates massive data volumes, including shipping invoices and related documents. Freight management involves cargo handling, shipping logistics, customs clearance, etc. Freight auditing identifies and validates accurate freight billing. Further, the freight audit process checks important parameters like quantity, weight, and freight rates. Companies save revenue and have better visibility of their shipping operations with consistent freight audits.
Manual freight auditing processes are not cost-effective and prone to mistakes. Many companies are using automated software tools to increase their operational efficiency. Automating freight audits is essential in evaluating millions of invoices across various transportation modes. Artificial Intelligence and Machine Learning are leading the way in automating audit tools.
This article will give valuable insights into automated freight audits.
Automated freight shipping audits
Freight audit automation involves software tools that streamline the freight auditing process. Freight audits check freight billing and compliance with freight carrier contracts. Inaccurate invoices, duplicate charges, and wrong surcharges are common business challenges. Automated freight audits address these challenges by
- Identifying and validating billing errors, duplicate invoices
- Help recover refunds from shipping carriers for discrepancies
- Comparing invoices against complex freight rates
- Maximize savings with intelligent tools
- Building a strong relationship with shipping carriers
Managing freight invoices with freight invoice auditing software can lower shipping expenses. The software delves into the intricacies of the complex freight audit process. It automatically verifies the rates in the freight invoices against the calculated freight rates. Further, it tracks shipping spending with customized shipping reports.
Freight Audit and Payments
An integral component of Transportation Spend Management solutions is freight audit and payments. These processes provide a valuable overview of shipping operations and costs. Freight audit and payment (FAP) processes examine freight invoices, check their validity, and settle the payment processes.
Advanced FAP processes apply complex carrier rates while verifying freight invoices. The accuracy of surcharges on freight invoices undergoes meticulous scrutiny. Shipment delivery documents containing accesorial charges get examined for accuracy. Moreover, claiming refunds is possible after proper validation of service failures by freight carriers.
Further, FAP processes verify the dimensional weight of goods and their calculations. Dimensional weight audits reduce shipping costs and improve profits. Automating shipping using dimensional weights improves billing accuracy. Businesses optimize their packaging processes with dimensional weights. Better DIM management increases shipping capacity, thus reducing shipping costs.
Freight Audit exception management
During freight auditing, some overcharges or invoices may require further investigation. These invoices are categorized as exceptions and reviewed with the shipping carriers. Direct human conversation with the carriers may be necessary to investigate the invoices in detail. However, automated freight audit exception management provides quick invoice resolution. It increases transparency regarding financial transactions for all parties involved. So, timely freight payments to carriers simplify the shipping process.
Freight Audit data normalization
Data normalization involves organizing data and removing redundancy. It reduces freight data duplication with advanced technologies. Electronic freight invoices prevent data anomalies. Freight data queries are answered promptly by data normalization. Further, freight audit automation analyses the data quality and checks for errors. Standardization of freight data streamlines logistics operations.
Companies communicate with shipping carriers after the confirmation of freight invoice discrepancies. Disputes arising from freight payments undergo discussions with the shipping carriers. Negotiations for settlement of freight payments are a part of the FAP processes.
Carrier contract compliance audit
Automated freight audits also perform contract compliance audits. It stops companies from overpaying shipping carriers. The compliance audit ensures shipping carriers have complied with the agreed terms of the contracts. In addition, it saves shippers money and increases transparency with the shipping carriers.
Carrier performance analytics are also a part of the freight audit processes. It involves monitoring the on-time performance of the shipping carriers and analyzing the data. Freight audits use digital platforms to monitor the performance of shipping carriers. For instance, on-time delivery assessment requires a comparison of the scheduled pick-up to the actual pick-up date. Tracking the relevant shipping metrics helps evaluate carrier performance.
Further, claims resolutions by the shipping carriers are a vital performance metric. If the shipping carrier has a high number of claims regarding shipments, it leads to increased costs for shippers. Businesses may have to resend or replace the shipments, which will cost more. Technology-driven freight auditing processes can efficiently identify such carrier performance issues.
Freight Audit best practices
Complex freight audits require some guidelines for increasing the efficiency of the audit process. So, companies have to follow some best practices while conducting freight audits. These practices include
- Having clear guidelines regarding carrier rates, accessorial charges, and service levels
- Standardizing procedures like document submission, verifying data, etc.
- Using automation tools and software for a smooth auditing process
- Constantly revisit and update carrier contracts, freight rates, and regulations
- Collaborating with shipping carriers and internal teams by fostering open communications
- Establishing protocols for effective dispute resolution and exception management
- Verification of freight charges, weight calculations, and discounts as part of auditing carrier invoices
- Assessing the performance of shipping carriers and their compliance with carrier contracts
- Leveraging data for cost savings and facilitating a robust data management system
- Continuous freight data analysis accompanied by comprehensive shipping reporting tools
Why choose Audintel for automated Freight Audits
Audintel automates freight audits with AI-powered processes. Our software tools detect freight invoice discrepancies such as billing errors, wrong surcharge addition, incorrect rate calculations, and more. AI-powered digital platforms track shipping spend by evaluating freight invoices. Automated technology compares freight invoices with contracts to spot mistakes.
Our intuitive dashboards provide shippers with cost-saving opportunities. Audintel‘s software platform gives accurate shipping details to improve transportation spending. Our digital platform helps shippers with in-depth insights into their shipping costs by seamlessly integrating with their ERP.
We provide customized shipping reports that analyze shippers’ expenses and quick dispute resolution with shipping carriers. Audintel uses Business Intelligence (BI) tools in freight audits. Businesses with greater visibility of their shipping data can negotiate for better carrier contracts. Data-driven decisions reduce overall freight spending.
Cloud-based freight audit solutions in real-time track shipments and accelerate freight payments. We have professionally trained staff who call shipping carriers and negotiate claims. Our additional services have saved money for our clients with 30% more in refunds. We provide deep insights into shipping costs with freight audit processes and streamline shipping operations.
The bottom line
As the demand for cost-effective transportation increases, automation in logistics is essential. Software like Robotic Process Automation simplifies mundane jobs. Shippers reduce shipping expenses by streamlining their shipping operations. Advanced technologies like Artificial Intelligence and Machine Learning are transforming the logistics industry.
Automated Freight Audits ensure the validation of each freight invoice for errors. Moreover, they provide complete payment visibility for shippers. Audintel has state-of-the-art, comprehensive, data-driven Freight-Audit solutions. We have the most comprehensive Line-item invoice freight auditing process. Our Transportation Spend Management (TSM) services incorporate freight auditing solutions to reduce shipping costs. Audintel has experts that provide customizable solutions that suit business needs. Visit our Audintel website to understand more about our automated freight audits. You can contact us at
+1 (619) 354 8539 for a free demo of our auditing services.
