Freight audit and payment programs can help companies of all sizes improve accuracy when reviewing and paying carrier invoices. With a team devoted to carefully analyzing all charges prior to payment, freight audit and payment providers can save shippers considerable 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 review freight invoices, compare the rate to the quote or contract, identifies any billing errors, disputes errors directly with the carrier and then pays the carrier invoices on behalf of the shipper. The shipper then receives a consolidated invoice on a weekly basis. Simply put, freight audit and payment programs help shippers prevent rating errors, duplicate payments and overcharges.
3 Core Benefits
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 had been quoted, placing a firm control over transportation related costs.
2. Redirect Resources
Freight and audit payment solutions eliminate time consuming tasks such as receiving and opening mail, sorting invoices, rate look-up, auditing and approving invoices, paying, and even assigning a general ledger code. These tasks, independent of each other, are simple but when combined these responsibilities can be tedious and time consuming. By removing these soft costs, accounting teams can redirect their resources to more important 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 details which can then be reported on a regular basis. Detailed reporting helps executives understand exactly where transportation dollars are going to make informed shipping decisions. Businesses can then track every mode and route combination to identify optimal choices for future shipping.
The data provided by these reports can then be passed along to employees to shape internal procedures and best practices. A tighter control on shipping selections can help companies cut excess transportation spend and return it to the bottom line.
Additionally, historical shipment data can help key decision makers plan for the future. When carrier contracts expire, companies can compare options to make valuable adjustments to core carriers. Dissecting and analyzing transportation trends can help companies make intelligent shipping decisions.
When evaluating freight audit and payment providers, consider partnering with one that also negotiates the transportation rates. If the company who is auditing and paying the bills is the same party that initially negotiated the rate, additional accuracy and reliability can be obtained.
Our team at Ascent Global Logistics provides clients with professional freight audit and payment solutions for all modes of transportation including Parcel, LTL (Less-than-Truckload), TL (Truckload) and International. Contact our team of logistics experts today for more information about our freight audit and payment solutions.
Ascent Global Logistics: Your Partner for Peak Logistics Performance.