iTech Data Services

What does it cost to process an audit in-house vs outsourcing?

30Jan
Read Time: 2 minutes

How freight invoice audits are conducted and where determines their cost. Since the audit scrutinizes all invoice data for accuracy, rate control, and compliance with contract terms, audits help lower the risk of errors that slow payments through discrepancy management. Looking at the differences between in-house and manual operations vs. outsourced and automated systems will demonstrate which options are most accurate and cost-effective.

In-House Audit Processing Costs

Before audit fees are attached to the cost of each invoice, consideration must be given to preparation costs. Personnel expenses consume a high percentage of income due to turnovers, which increase training and onboarding costs. Even when the data entry team is stable, an upturn in business means a corresponding rise in personnel.

Total in-house processing also requires complex software to generate the invoices, technology to keep pace with the growing industry needs, and continued training to take advantage of technological advances. Plans to detect fraud and non-compliance must be added to protect the customer base, personal and banking information, and analysis of the company’s position. Adding the necessary audits extends processing time, and manual audits are significantly more resource-intensive.

Outsourced Audit Processing Costs

Outsourcing the freight invoice processing and audit services substantially lowers overall costs. Companies using Machine Learning enhanced OCR for data extraction increase accuracy while reducing processing time and cost. Since personnel from data entry can be moved to higher-level tasks, training and onboarding costs are eliminated. ML-enhanced OCR now reads more languages and formats necessary to index data on the BOLs. Algorithms search for double-billing, rate inconsistencies, and contract discrepancies, minimizing client disputes.

Transitioning to outsourced freight bill audits using ML-enhanced OCR allows new business growth without the proportional rise in cost. How? Through algorithms validating rates, reducing processing time, and reducing personnel. Statistics have shown that freight invoice processing takes 30 minutes per invoice with a 72-hour turnaround. With automation, total turnaround drops to minutes.

Decision-making Factors

Customers using manual in-house audits are typically concerned about cost and security. Outsourcing companies offering free proof of concept along with appropriate certifications aid in building confidence in their services. Time spent researching these two areas may bring new insights regarding hidden advantages and easily remedied difficulties within their processing systems.

Outsourcing freight invoice auditing continues to reduce costs by up to 65% through automation using machine learning OCR. Outsourcing partners implement security measures and compliance protocols that minimize the risk of fraud and ensure adherence to regulations. These cost savings and increased efficiency make outsourcing an attractive option that optimizes transportation expenses and enhances accuracy to create a competitive edge in today’s logistics community.

If cost is the top consideration for choosing the most effective and secure landscape for freight invoice processing and auditing, consider companies with the necessary certifications and experience in the industry. iTech offers the following rate audit capabilities:

  • Granular Tariff Examination
  • Seasoned Auditors
  • Customized Contract Scrutiny
  • Contextual Discrepancies
  • ROI


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