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Freight Audit for Manufacturers

Freight Invoice Audit – Manfuacturing

Freight Audit for Manufacturers

2–3% of freight invoices contain overcharges. On a $4M freight spend that is $80,000–$120,000 a year that quietly becomes part of your baseline. TLI audits 100% of your invoice, not a sample, disputes the errors directly with the carrier, and fixes the root cause in ViewPoint TMS to prevent the same overage coming back next month.

$634,000 Recouped for Clients Through Prior Year Freight Invoice Audit
100% of Invoices go through the audit program
$1.2M Recovered for Clients through Prior Year Claims Settlement

MC# 266554

FMCSA-Licensed and Bonded

2-3%

Savings via Audit Program

4.9★

437+ Google Reviews

1994

Founded over 30+ years ago

THE SHORT ANSWER

What is freight audit for manufacturers?

Freight audit is the line-by-line review of every carrier invoice against the shipment’s quoted class, weight, discount, tariff, and accessorial charges. Manufacturers often benefit the most from rigorous auditing because dense palletized freight, hazmat requirements, inbound raw-material collect shipments, and multi-stop deliveries create more opportunities for billing errors.
TLI saves the rate you were quoted, along with contract pricing that may exist and audits that against the invoice the carrier sends. TLI audits every invoice before payment this way and identifies and disputes discrepancies directly with the carrier. TLI then corrects the underlying routing or rating rule in ViewPoint TMS when needed. That means we do more than recover an overcharge, we address the source of the error so it does not keep recurring.

WHERE YOUR MONEY IS LEAKING

Four Billing Errors TLI Finds on Manufacturing Freight

These examples are not rare occurrences. These four audit recovery findings account for the majority of disputed dollars on manufacturers’ LTL and truckload invoices. They are precisely the types of discrepancies an accounts-payable clerk matching an invoice total to a PO is unlikely to catch.

Service-Failure Refunds — Guaranteed or expedited shipments that miss their delivery commitment, where a refund may be due based on the service quoted and the actual POD timestamp.

Duplicate & Double-Billed PROs — The same shipment billed more than once, including interlined shipments where multiple carriers invoice the same move. PRO-level matching catches what invoice-total matching misses.

Incorrect Contract Rating — The motor carrier rates a shipment against the wrong contract, tariff, account, or pricing agreement, resulting in charges that do not match the rates you negotiated.

Unapplied or Incorrectly Applied Contract Terms — The carrier misses negotiated discounts, minimums, weight breaks, fuel provisions, or other contract terms when rating the shipment. TLI re-rates the invoice against the applicable agreement to identify the difference.

Reclassification & Density

Carrier inspects a pallet, reclasses it up two NMFC classes, and rebills. TLI disputes with density calculations, product spec sheets and the original BOL.

Weight Breaks & Tariff Misapplication

A carrier applies the wrong tariff, misses a weight break, or applies your discount to the base rate instead of your contracted rate. Each error may look small on a single shipment, but across thousands of shipments, the overcharges become massive overages.

Shipping Accessorial Creep

The carrier adds liftgate, detention, redelivery, limited access, or residential charges after delivery without supporting documentation. TLI disputes wrong accessorials against the shipment details and delivery records before you pay it.

Fuel Surcharge & Discount Drift

The carrier applies fuel surcharges using the wrong index week or reduces contracted discounts at renewal without notice. TLI re-rates every invoice against the current contract to identify and recover overcharges.

Case study — Misco Products, Reading, PA

The Chemical Manufacturer Other 3PLs Said Had Nothing Left to Save

Misco Products manufactures liquid cleaning chemicals in Reading, Pennsylvania, producing private-label products for janitorial, food service, education, and healthcare customers and shipping nationwide from a single plant. Annual freight negotiations had become a burden, while transportation remained a significant overhead cost with limited visibility into where Misco could improve. Other 3PLs focused on freight bills and discounts, but their analysis produced little savings and failed to address the daily challenges facing Misco’s customer service, operations, and accounting teams.
TLI took a different approach. We focused first on the problems creating the most pressure: hazmat routing, manual shipment tracking, and limited staff capacity. We then demonstrated ViewPoint TMS around those specific needs rather than leading with a rate analysis. TLI implemented ViewPoint in phases without disrupting daily operations and provided hands-on training for operators and customer service representatives. Misco called the TLI training “phenomenal,” and TLI continues that same approach when training new hires.

7,000+

Shipments under Management

50%

Customer Service Cost Savings

6 Week

Reduction Time in Freight Bill Access

“At Misco we truly value our relationship with TLI. They handle thousands of inbound and outbound shipments for us a year. Anytime a member of our team reaches out to a member of their team they are quick to respond with valuable information that helps us to make decisions on our end. And their team helps us to effectively maintain our cost and work with the right carriers that provide the services that we need.”

Tyler Jones

Director of Supply Chain, Misco Products Corporation

HOW THE SHIPPING AUDIT WORKS

From Data Intake to Recovered Dollars

Every shipment booked through the TMS has its original quote saved. When the carrier invoice arrives, it is automatically audited against the quoted rate and your contract terms. Any discrepancies are flagged for TLI’s audit team, who work directly with the carrier to resolve them on your behalf, your team never have to get involved in those billing dispute conversations.

Data Intake & NDA

Mutual NDA, then 3 months of invoices, contracts and lane detail in any format.

Baseline & Benchmark

Every shipment re-rated against contract, tariff and current market by lane and mode of transportation.

Carrier Sourcing

Both national and regional carriers quotes are compared against your contract and quote requirements.

100% Invoice Audit

Every shipment’s invoice is compared against the rating output and original quote, and any discrepancies are flagged for TLI’s audit team to resolve directly with the carrier on your behalf.

Billing Dispute & Recovery

TLI handles the billing dispute directly with the carrier, using the BOL, density, tender and POD as supporting documentation.

Root Cause & QBR

TLI’s goal is not to dispute every invoice, it’s to prevent the same billing issues from happening again. Disputes carry a real administrative cost, and work with you to address the root cause rather than repeatedly chasing the same errors.

Manufacturing Value

Freight audit is often the fastest way for manufacturers to prove out a partnership before going further. If overcharges are only one symptom of a larger transportation problem, such as inbound raw-material scheduling, hazmat routing, or multi-plant carrier management, TLI’s managed transportation services for manufacturers build on the same audit data and ViewPoint TMS foundation. This inquiry can lead to additional service offerings that may improve supply chain performacne and result in additional savings.

COMPARING YOUR OPTIONS

Post-Audit Recovery Firm vs. Freight Broker vs. TLI

CAPABILITY

FREIGHT BROKER

POST AUDIT FIRM

tli

Audits 100% of invoices, not a sample

Audit happens before payment

(Post Audit Only)

Named account team you can call

Reclass & density disputes with documentation

Carrier Resolution

(Notice of what to dispute)

Root cause fixed in the TMS, not just refunded


FREQUENTLY ASKED QUESTIONS

Freight Audit Questions Manufacturers Ask

What is a freight audit, and how is it different from freight bill pay?

Freight audit is not the same as freight bill pay. Freight audit compares each line on a carrier invoice to the class, weight, discount, tariff, and accessorials quoted when the shipment was booked. Freight bill pay simply pays the invoice. Most providers pay first and deal with discrepancies afterward, while many freight brokers lack the technology to manage billing disputes at scale. TLI audits invoices before payment, so incorrect charges are disputed before they leave your account. Correct invoices process automatically, and only exceptions reach a person.

Our AP team already matches invoices to the PO. What would TLI find that they do not?

AP matching is important, but what happens when the invoice is wrong? The billing dispute. A shipment can total exactly what the carrier intended to bill and still be incorrect, reclassed under the wrong NMFC, rated at a wrong weight break, charged for a liftgate that was never used. TLI re-rates every PRO against the contract and original quote, then handles the dispute when we find an error with the carrier on your behalf. The goal is simple: your AP team gets a clean invoice to process instead of another billing problem to chase.

Will disputing invoices damage our carrier relationships?

Billing disputes can damage carrier relationships when they are consistently incorrect or appear to be routine short-pays. That is why TLI uses TMS technology and supporting documentation to validate every dispute before it is submitted. We also look at the pattern: is the issue unique to one shipper, or are multiple carriers billing the same way? If every carrier is reaching the same conclusion, the carrier may be right, even when that is not what you as a shipper want to hear. When a dispute is valid, TLI submits the evidence, including the BOL, density calculation, tender record, and POD timestamp, directly to the same carrier representatives we work with every day. We handle the back-and-forth so your team does not become the adversary. The result is a more credible dispute process and a stronger carrier relationship over time.

What data does TLI need to start, and what if it lives in multiple systems?

TLI typically needs three months of freight invoices or a carrier spend export, your current contracts and discount letters, and lane detail in whatever format you have: CSV, ERP exports, or PDFs from multiple systems. If your accounting system does not retain density, freight class, or other data needed for a proper audit, TLI can provide templated letters to request the data from your current vendors. We normalize the data, connect the pieces even from various systems, and make it actionable. If your BOLs are split between carrier portals, email, and other systems, that is a finding in itself, and one ViewPoint can address that fragmentation at go-live. Alternatively we can process via physical .pdf invoices via OCR technology.

How long until we see recovered dollars, and how is the audit priced?

How quickly savings are realized depends on how often your carriers make billing mistakes and the size of those errors. Adding a new carrier often creates the most opportunity because billing accuracy tends to improve over time as carrier billing is corrected and refined. The audit is dynamic: every invoice is reviewed as it comes in, and disputes are filed as errors are identified. From there, savings depend on the carrier’s resolution timeline, which is typically measured in weeks rather than quarters. Before any data moves, TLI reviews your shipment volume and complexity and provides a written assessment of whether the recoverable exposure justifies the program. If it does not, we will tell you that too.

Do you audit inbound vendor freight and small parcel, or only our outbound LTL?

TLI can audit inbound freight in any direction, including drops and shuttles. We primarily audit LTL and FTL shipments and do not audit parcel.

Can we get the freight invoice audit service without handing TLI all our freight?

Yes. Some shippers use TLI exclusively for freight invoice auditing while keeping their freight management in-house. TLI can audit your existing carriers against your existing rates without taking over execution. That said, an audit-only approach is not always in your best interest when you consider the efficacy of our capabilities. Our technology allows us to analyze actual shipment data, true base tariffs, and the many ways carriers structure pricing including point-to-point, class, density-based, zone-based, linear feet based, and many other contract types. This gives you an all-in comparison rather than relying on tariff discount percentages or estimates that may not reflect your actual cost. You may not have the rating engine or technology to evaluate every option side by side. Many TLI programs start with audit alone, and the first quarterly review often makes the case for more. Once you can see the lane-level variance, billing errors, and pricing opportunities, moving to managed freight becomes an arithmetic decision rather than a leap of faith.