With the freight industry’s complex pricing system, there are many ways to make costly errors during freight payments. This includes overcharges for additional services, invoice duplicates, incorrect freight classes, missed discounts, late delivery payments, and more.
Often these mistakes go unnoticed; that is why a freight audit is no longer an option but a necessity.
What is a freight audit?
Freight audit is the business process of analyzing and validating the freight bill to ensure no freight invoice overcharges or mistakes during shipment. The freight bill is the invoice from a carrier to the shipper, specifying the total charges for the freight shipment.
Freight Audit Process – Capturing Value from the Core
The freight audit is the last crucial step before payment is made.
During the freight invoice auditing process, organizations can recognize errors and correct them in time to provide detailed data and accurate payments while generating valuable insights in real-time. Freight audit also aids in streamlining the entire process and reducing turnaround time.
3 Industrial Ways to Perform Freight Invoice Auditing:
Recruiting In-house Specialists:
Organizations can hire in-house specialists to handle the invoices manually. Though this is one of the traditional methods, it’s not suitable for organizations with high shipping volumes. They require more specialists, as manual processes can are time-consuming and error-prone.
Deploying Freight Invoice Auditing Software:
Deploying Freight invoice auditing software that specializes in handling freight invoices can help in-house specialists seamlessly process shipment audits, track payments, collect data, and effectively analyze data.
Though this process saves time, it’s not cost-effective. Software is expensive and the costs to maintain the system and hardware can quickly add up.
Teaming up with Freight Audit Service Partners
Most of the logistics giants, the SME’s of today, reach out to outsourcing partners for freight audit and payment services. This option not only saves time and cost but also provides the insights of valuable experts.
An outsourcer will process freight invoice data capture in real-time, which organizations can then access anytime, or anywhere. Plus it tends to be much less tedious to maintain and cost-effective.
Also an outsourcing partner can help you tackle all the challenges in freight bill audit.
Only 26 percent of all freight invoices are accurate. Overcharges, duplication, and mistakes have become common in the invoice process resulting in lost revenue. However, with the right experts organizations can find that money again.
iTech- Rethinking Freight Audit and Payment Services. Talk to iTech about automating the freight invoice process. From indexing, to capture and audit iTech is an expert at all aspects of the billing cycle ensuring proper payments are right every time.