freight audit services

Global freight audit: essential for freight services worldwide

by BlogFreight Audit

Has it become difficult to daily track and monitor freight consignments and bills? Are you sure your company has not overpaid or underpaid for freight? Are the administrative and logistics resources hired for global freight monitoring suitable for the job?

Freight audit services resolve the above questions for companies. We had earlier discussed freight audit services in our previous blog. This article gives further details on global freight audits and freight audit companies. In addition, we explain the terms of freight reconciliation, freight audit, and payment.

Global freight audits

It is the examination and verification of freight bills on an international scale. Some companies manually analyze each freight invoice in-house. This manual audit process is time-consuming and prone to human mistakes. On the other hand, partnering with freight audit companies saves time and money for shippers. Freight audit companies monitor critical parameters such as shippers’ data management, shipping carriers’ contracts, and payments.

Freight bill auditing

Global freight audit services offered by freight audit companies help in checking invoices for freight billing errors. The errors include inaccurate shipping weight, incorrect time mileage, miscalculation of discounts, wrong freight rates, and more. Auditing freight bills is vital for improving shipping companies’ overall performance. Proper shipping data utilization reduces extra expenses of surcharges and accessorials. Freight bill auditing involves:

  • Centralizing invoice data for quick retrieval
  • Grouping freight bills by shipping carriers
  • Auditing for errors and verifying freight charges with SMC/ carriers’ contracts
  • Auditing Fuel Surcharges and other accessorial.
  • Providing bill payment reports for client

Freight bill auditing helps shippers save money and recover payment for billing errors.

What is Freight reconciliation?

Freight rates are a part of freight bill generation when the freight load is confirmed. Shipping carriers submit freight invoices to shippers. Freight reconciliation is a method of matching each freight bill with its corresponding freight invoice. The reconciliation process is manual or automatic. In either case, the reconciliation process involves submitting the freight invoice for payment by vendors.

Streamlining the freight reconciliation process

The freight reconciliation process may appear simple for one or two shipments a day. But, it is a complex process for businesses having thousands of freight shipping in a day. Freight audit companies use automation to streamline the reconciliation process by eliminating paperwork. In short, there is a consolidation of accounts payable and paperwork from multiple vendors. So, shippers receive a weekly freight invoice consisting of weekly freight shipping and vendor payments.

Understanding freight audit and payment

Inaccuracies in freight invoices and freight payments result in errors and high costs for shippers. Freight audits are essential for global shippers to prevent potential overcharging by parcel carriers. Freight audits reduce shippers’ transportation expenses. According to reports, the global freight audit and payment market will rise exponentially. It is due to an increase in demand for management systems in the transportation and logistics industry.

Freight audit and payment providers

It is challenging to manage freight payment processes due to inconsistencies. Thus, it is vital to partner with freight audit and payment (FAP) providers. FAP providers have the tools and expertise to manage global shipping transactions. They can root out duplicate invoices, verify freight rates, resolve claims, etc. In addition, FAP providers manage transportation spend on a global scale.

How to select the best freight audit and payment providers?

Freight audit and payment (FAP) providers have to use the latest technology in all aspects of shipping. So, reporting and collecting data in real-time ensures freight payments are on time. Shippers have to verify the business intelligence and reporting tools of FAP providers. In addition, verification of FAP’s software programs and reviewing their financial and credit history is essential. The FAP providers should increase their invoice capacity spend with the shipping needs of shippers. Finally, the freight audit and payment provider should have friendly business relationships with multiple shipping carriers to make matters easy for shippers.

Taking your freight auditing process to the next level with Audintel

Global freight audits identify errors and request refunds from global shipping carrier companies. Audintel analyzes complex freight data and provides customized shipping reports to our clients. Further, our team analyses shipping carrier contracts to lower shipping costs. We streamline freight payment processes to improve your company’s bottom line. Audintel conducts freight audits based on parameters, such as invoice date, invoice amount, shipping weight, bill of lading, etc. In addition, we have experts in freight contract negotiations to help shippers get the best freight carrier contract deals. Our freight audit services provide valuable insights into transportation spend.

Finally, shippers find it difficult to calculate freight rates for each freight shipment. In addition, freight rates and other surcharges change periodically. Freight audit services track and monitor changes in freight rates and accessorial charges and help shippers take the necessary action. Our team in Audintel deals with both freight and parcel audits, you can reach us for further discussions or you can call us at +1 (619) 354 8539. Further, you can also learn about our services on Audintel website.

truckb

A simple way to verify freight bills, using freight audit services

by BlogFreight Audit

Freight Audit Services help in auditing the process which is essential for shipping companies. Shipping large volumes of goods at a fast pace and at less cost is vital for shipping businesses. Freight are shipments that weigh more than 150 lbs. Transportation of freight is a complex logistic process. Shippers have to pay freight bills to shipping carriers for freight transportation.

Factors like modes of freight transportation, distance, type of shipping goods influence the invoice amount. An audit is required to verify the invoices. In this article, we will discuss freight audits, their types, and the benefits of using freight audit services.

Overview of Freight transportation modes

There are different modes of freight transportation: road, air, maritime, rail, intermodal, and multimodal.  Transporting goods by these modes have a different impact on businesses.

Road transport is the most popular mode of transportation used by shippers. Businesses that transport thousands of packages use trucks or trailers. There are two types of road transport: Full Truck Load (FTL) and Less-than-Truck Load (LTL). In FTL, shippers can ship a truckload of freight and pay for the full truck. While, in LTL, shippers only pay for the part of the truck that contains their goods but takes a longer shipping time.

Maritime (Ocean) transportation is the slowest mode but transports the highest volume of freight. They are two types: Full Container Load (FCL) and Less-than-Container Load (LCL).

Air cargo transportation is the fastest mode of transportation for shippers. Shipping carriers transport high-value freight and require quick delivery by this mode.

What is Freight Audit?

A business process where a shipper’s freight bills undergo examination, analysis, and verification is a Freight Audit. Freight bills are invoices from a shipping carrier to a shipper. Advanced software is in use to analyze freight bills for accuracy. A freight audit finds billing inaccuracies and saves money for shipping businesses.

Types of Freight Audit

A freight audit process can be manual, automated, or a combination of both. A Manual Freight Audit process is time-consuming and may lead to errors. The Automated Freight Audit process uses sophisticated software to give consistent and quick results. There are different types of audits based on factors affecting the freight invoices.

1. Freight rate audit

Shippers and carriers decide on a tariff for freight transportation.  Freight rate auditing checks the freight bill entry process. The audit is on the transportation charges and discounts. The shippers find it hard to calculate tariff rates as it varies based on a variety of parameters like shipper address (city, state, country, zip) to consignee address (city, state, country, zip), the permutations and combinations are generally exponentially high. Automated freight rate audit of Audintel can verify the freight rates charged by shipping carriers. We identify if there is overcharging or tariff rate change by the shipping carriers. We will raise a dispute with the carrier and get the carrier to properly charge the client.

2. Duplicate Invoice audit

An audit helps in identifying shipments that have multiple duplicate invoices. For example, if a single consignment has two closely matching invoice numbers, shippers may end up paying twice. Audintel conducts audits on shipments based on parameters such as invoice date, the weight of the shipment, bill of lading (BOL), invoice amount to prevent duplicate invoicing. Invoices that are duplicates are moved to zeropayclose and not forwarded to the client for payment.

3. Three-way Match audit

A three-way match audit involves three parties, the shipper, shipping carrier, and the auditor. It requires matching the invoice of the shipping carrier with the shipper’s match file. The match file comprises invoice records and estimated shipping price. The auditor compares the files and invoices to check for any errors in the invoice of the carrier.

4. Surcharge Audit

Other than transporting charges, freight carriers offer facilities to shippers. The facilities include lift gate charges, toll fees, additional handling charges, and more. There is an agreement between our client and shipping carriers regarding fees. Audintel audits surcharge levied by the shipping carriers and ensures that there is no overcharging.

5. Fuel Surcharge Audit

Fuel costs vary every day. The U.S. Energy Information Administration (EIA) announces weekly fuel prices on its website. The freight carriers adjust the fuel surcharge amount based on EIA published fuel prices based on the pre-agreed weekly days with the client. Audintel is a freight audit service provider that monitors any additional fuel surcharge applied by the shipping carriers during shipment.

Benefits of Freight Audit Services offered by Audintel

Audintel saves money for its customers with its freight audit services. It is a tall claim. Our customers can see the benefits of partnering with us. Our software helps customers

  • Review freight invoices
  • Minimize billing errors
  • Save time and money
  • Optimize supply chain operations
  • Calculate fuel surcharge rates
  • Make the freight billing process simple

Audintel has the best freight audit software that takes care of shippers’ freight billing.

To summarize

Shippers need to invest time and resources to verify freight bills.  Businesses are losing money and time by manually tracking freight bills. Shipping businesses recover 5% to 10% of their freight costs through auditing. By using freight audit software, shippers have better control over their transportation expenses. Freight auditing is a way to control a shipper’s freight spend. Audintel is providing real-time information through its intuitive dashboard. We use state-of-the-art technology to audit freight invoices and save money for our customers. For further details, write to us at [email protected] or please visit our Audintel website or call us at +1 (619) 354 8539.