FREIGHT BILL AUDITING AND FREIGHT PAYMENT SERVICES

Freight auditing is a neglected area of transportation programs. Working with the right freight bill auditing firms can not only save you money, but also provide a wealth of data on service levels and carrier performance to help manage your program.

Trans-Solutions does not provide freight auditing and freight payment services. But we have a deep understanding of this market and help you identify the right provider for your freight profile. For instance, if you ship large amounts of parcel freight, you need a freight bill auditing firm with the technology to break down the many shipment details that parcel carriers provide. The right freight auditing firm might carry a higher per-invoice charge, but deliver significantly more value based on the refunds or credits they are able to secure for late deliveries, overcharges, duplicate invoices and other shipment and billing errors. Freight auditing firms that appear to offer “bargain” rates may only be performing a payment function, with little ability to conduct a thorough audit.

For a detailed overview on the topic, read our free white paper: “Freight Invoice Auditing and Payment: A Primer for Shippers.”

Keys to Selecting the right freight bill auditing partner

• Bigger is not necessarily better. For instance, smaller freight bill auditing providers that specialize in small parcel will keep up to date on the latest EDI feeds from UPS and FedEx since they want the additional detail these carriers provide. Conversely, large auditors that handle all modes of freight often can’t stay current on the tariffs and the technology feeds from the parcel carriers. Therefore, they are not getting data they can use to get money back.
• Don’t underestimate the value of data. Firms that can provide easy access to historical freight performance, by carrier, give you an invaluable database for future reporting, trend analysis and carrier negotiations. Typically, these firms are ones that deploy the latest, web-based technology.
• Selecting an auditor with the lowest rate may actually cost you money. Auditing freight bills is labor intensive. Some work can be automated to lower this cost, but collecting on an error is a manual effort that requires persistence, deep knowledge of the carrier tariff, and time. It’s like an insurance claim. The first response is typically a denial of the claim. So, when you decide on a freight auditing and payment company, be sure to include the revenue side. If the auditor doesn’t find any money through the audit, it’s not much of an audit. At the very least, the revenue retrieved from an audit should be more than the cost of the audit.

Need help to evaluate your approach to freight auditing?

Contact us to discuss your needs in more detail.