3 Benefits of Freight Audit and Payment Programs

3 Benefits of Freight Audit and Payment Programs

03/13/2017
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Freight audit and payment programs can help companies of all sizes improve accuracy when reviewing and paying carrier invoices. Whether the freight is Parcel, Less-than-Truckload, Truckload, Volume, Intermodal or International, freight audit automation can have enormous benefits. With a team devoted to carefully analyzing all charges prior to payment to the carrier, freight audit and payment providers can save shippers a considerable amount of time and money.

What is freight audit and payment? 

Freight audit and payment solutions provide shippers with a dedicated team to help streamline the auditing and payment of freight invoices from carriers. Freight audit and payment providers help companies by:

  • Reviewing freight invoices
  • Comparing the billed rate to the quote or contract
  • Identifying billing errors
  • Disputing errors directly with the carrier
  • Paying carrier invoices on behalf of the shipper

The client then receives a consolidated invoice each week from the freight audit provider. Simply put, freight audit and payment programs help shippers prevent shipment rating errors, duplicate carrier payments and incorrect carrier overcharges.

3 Reasons to Outsource Freight Audit and Payment

1. Control Costs

Meticulous contract management, detailed auditing procedures and proven negotiation methods by freight audit and payment providers ensure clients pay the exact rate that they were quoted, placing a firm control over transportation-related costs.

2. Redirect Internal Resources

Freight and audit payment solutions eliminate time-consuming tasks such as receiving and opening mail, sorting invoices, looking up rates, auditing and approving invoices, paying carriers and even assigning a general ledger code.

Independent of each other, these tasks are simple; when combined, these responsibilities prove to be tedious and time-consuming. By removing these soft costs, accounting teams can redirect their resources to more critical initiatives.

3. Increase Visibility

Freight audit and payment solutions can also increase visibility for top management teams. Freight audit and payment companies utilize state-of-the-art technology to capture and store shipment and transportation cost details which can then be reported regularly.

Detailed reporting helps supply chain executives understand exactly where transportation dollars are going, allowing them to make informed shipping decisions in real-time as well as during the budget season. Access to historical data enables businesses to track every mode and route combination, thus identifying optimal choices for future shipping.

Additionally, the data provided by robust freight invoice reporting can be passed along to employees to shape internal procedures and best practices. Tighter control on making optimized shipping selections can help companies cut excess transportation spend.

Historical shipment data can also help key decision makers plan for the future as it relates to transportation procurement and annual carrier negotiations. When carrier contracts are up for renewal, companies can compare options and make strategic adjustments to their network of core carriers. Dissecting and analyzing these reports and historical trends can ultimately help companies make more intelligent shipping decisions.

Selecting a Freight Audit and Payment Provider

When evaluating freight audit and payment providers, consider partnering with one that also negotiates transportation rates on your behalf. If the company that is auditing and paying the bills is the same party that initially negotiated the freight rate, additional accuracy and reliability can be obtained.

Our team at Ascent Global Logistics provides clients with professional freight audit and pay solutions for all modes of transportation including, Parcel, LTL (Less-than-Truckload), TL (Truckload), Volume, Intermodal and International. Contact our team of logistics experts for more information about our freight audit and pay solutions.

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