Effective Supply Chain Audit Strategies

By TLI

Category: Logistics

Topic: Freight, LTL

Implementing an Effective Supply Chain Audit

An effective supply chain audit involves assessing vendors to guarantee efficiency in your logistics process. A crucial aspect of this audit is the transportation component. This post discusses the ongoing importance of freight invoice auditing in the context of supply chain audits.

Supply Chain Audit

Freight Invoice Audits

Initiating a logistics audit across the entire supply chain is comprehensive, but a key starting point is an ongoing freight invoice audit. This process effectively mitigates costs and shows any persistent operational challenges. Diving into freight bills reveals efficiency potential and transparency into your processes.

Freight invoice auditing is the process of verifying freight invoices with quoted amounts. Decisions in freight routing rely on readily available information like rates, services, and transit times.

When carriers consistently add charges during invoicing, a freight audit becomes a crucial tool to identify and resolve underlying problems. For instance, misclassifying a location as a residence or excluding residential location service during rating are issues that blame may fall on the carrier or the shipper. A supply chain leader requires this data to comprehend why the charges consistently occur.

Freight Invoice Auditing helps pinpoint operational and billing issues, marking the initial step in an ongoing audit process within the supply chain.

Three Elements for Effective Supply Chain Audits

Conducting an effective supply chain audit becomes more manageable when essential safeguards and elements are established upfront. Here are three crucial elements to ensure an efficient supply chain audit:

Internal Reference Numbers

Customizing references and GL coding according to your company’s needs eliminates the necessity for multiple inputs to retrieve shipment information and data. Opting for internal references over external ones promotes better collective understanding of information among internal staff across departments.

Electronic Imaging Database

Efficient record collection enhances accounting and auditing processes. An effective imaging system facilitates auditors with seamless access to documents for discovery and dispute resolution. Some systems even offer automated uploading and easy identification.

Invoice Analysis Tools

Invoice analysis tools automate the manual processing of invoices. The tool is configured to cross-verify quoted charges against invoiced charges. The best invoice analysis tool is automated

Partnering with a Third Party Logistics Provider

Partnering with a 3PL brings specialized expertise and technology, ensuring accurate invoice processing and cost mitigation. Trust a 3PL to handle the complexities, providing you with peace of mind and enhanced financial efficiency in your supply chain.

ViewPoint TMS, provided by TLI, simplifies freight routing, tracking, and management for customers while incorporating efficient back-end invoice auditing. Effortlessly giving shippers access to supply chain audit tools.

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