freight audit services

Freight audit services for greater transparency

by BlogFreight Audit

A freight audit is essential for checking incorrect freight billing errors. Outsourcing freight audits and payment helps eliminate overcharges and save money.

Companies that transport freight have to deal with overwhelming volumes of transactions daily. The amount of paperwork and complexity of freight rates is challenging for many organizations. In addition, payment to freight carriers has to be on time to avoid souring  carrier-shipper relationships. Companies must perform a freight audit to identify freight billing errors and improve productivity. Hence, outsourcing freight audit and payment services to a third party maximizes a company’s bottom line. This blog discusses outsourcing freight audit and payment services to freight audit companies.

Freight audit

Earlier companies used manual freight audits that were time-consuming. The process was prone to mistakes. Now, freight audits are a combination of automation and manual processes. So, freight audits can give reliable freight rates and ensure invoices are not duplicated or overcharged. Freight payment involves the amount payable for transportation or freight invoices. Further, freight audit and payment processes improve logistics efficiency and monitor shipping carriers’ performance.

The importance of freight audit

A freight audit is necessary for all freight shippers. Freight rates are negotiated with shipping carriers before contracts are signed. However, many companies end up paying more than the agreed quote. Freight audits help companies gain better visibility on their overall shipping expenses. In addition, freight audits optimize invoice management and payment. Freight audit includes both pre-audit and post-audit services.

Pre-audit helps shippers understand if the shipping carriers are correctly charged based on the contractual agreement.

Freight post-audit services aid companies decide whether shipping carriers have overbilled them.

How does outsourcing freight audit work?

In the U.S., many companies outsource to freight audit and payment companies. Ideally, freight audit companies act as facilitators between shippers and shipping carriers. Freight auditors receive invoices from shipping carriers or for in-depth analysis. The analyzed data offers good insights into shippers’ operations. Duplicate invoices are verified, and only outstanding bills are processed. Finally, only confirmed invoices are paid by wire transfer or check for payment. In addition, any unpaid invoices and due balances are taken care of during the freight audit process.

Advantages of outsourcing freight audit

Conducting a freight audit in-house may seem the best option for many companies. But outsourcing freight audits identify the mistakes that internal teams cannot. Some of the significant advantages of outsourcing include

  • Reducing labor costs

Outsourcing freight audit helps in cutting labor costs with accurate freight billing. Manual verification of freight payments before invoice approval requires labor. Outsourcing reduces these labor costs and increases productivity.

  • Saving time

Companies need not waste their valuable time tracking each shipment, filing for claims, requesting refunds, and more. Outsourcing saves time for companies by streamlining the freight audit process. Further on-time accurate freight payment to shipping carriers improves the shipper-carrier relationship.

  • Increase in financial returns

Freight audit companies aid shippers in recovering lost charges. Based on carrier contracts, accessorial surcharges or late delivery charges are verified, reduced, or waived. Outsourcing helps in identifying wrong detention invoice rates. In addition, freight audits help in reducing inventory costs and improve productivity.

  • Greater visibility

Dashboards give shipper the capability to become pro-active instead of reactive by anticipating problems before they become a crisis. They allow shippers to easily view their transportation data in easy to read and interpret tables and graphs. Perfect Dashboards , customizable reports helps shipper to enhance decision-making. Dashboards and reports provide transparency and real-time visibility to a shipper’s freight spend.

The above advantages give a competitive edge to shippers. Freight audits provide new opportunities for companies to streamline their processes.

Save more with Audintel

Freight audits can transform businesses. Audintel’s customized, intuitive dashboards and shipping reports help our clients understand their freight shipping expenses. We uncover potential freight bill errors and provide accurate freight billing across each carrier agreement. Audintel has a dedicated, professionally trained staff at our Call Center that negotiates with shipping carriers periodically for claims and refunds. Our state-of-the-art technology tracks freight invoices and saves money for companies. In addition, we handle complex contracts and rates for our clients. Audintel‘s team has optimized the freight shipping processes of our clients, saving them millions of dollars in shipping costs.

The bottom line

Businesses can save a substantial amount of their freight costs by adopting a good freight auditing process. Freight audits help in identifying freight billing errors and resolve freight payment issues. Skilled and qualified auditors at Audintel identify freight billing errors. In addition, we resolve payment issues and follow clients’ precise business rules. Audintel has saved millions of dollars for our clients with our efficient freight audits. Would you like to learn more about freight audits and our services? For further information, you can contact us at +1 (619) 354 8539 or visit our Audintel website.

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.

freight audit

Is outsourcing freight audit a good business choice?

by BlogFreight Audit

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:

Increasing productivity:

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:

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.

Gained visibility:

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.

Conclusion:

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.