Shipping Invoice Audits
Introduction to Freight Auditing
Freight audit and payment involves matching carrier invoices to original quotes to validate charges, identify discrepancies, and processing payments. This critical process protects shippers against unfair overcharges, uncovers billing errors, and provides data to pinpoint operational issues driving up costs.
Performing a Shipping Audit
Performing a shipping audit might seem straightforward at first – just compare the quoted amount with the invoice, right? However, logistics is more complex than it appears. When the person receiving the quote differs from the one paying the bills, transparency can be lost, leading to potential overpayments. This can occur when carriers add charges for reweighs, reclassification, additional accessorial fees, and more.
Understanding not only the quoted amount but also freight transportation is crucial. Knowledge of accessorial charges, like those for residential or limited-access locations, requires background information to comprehend why the charge was applied. Having a grasp of logistics aids in disputing charges with the carrier, determining their validity.
Shipping Invoice Audit Technology
Technology assists shippers in managing additional costs. A top-notch Transportation Management System (TMS) identifies shipments that don’t match the quoted amount upon receiving an invoice. However, leading TMS systems can be expensive, involving annual subscriptions and setup costs.
Premium technology not only identifies discrepancies during invoicing but also aids shippers in correctly routing freight. For instance, ViewPoint TMS enables shippers to choose the right freight class and flags locations marked as residential. Utilizing technology that identifies unmatched invoices and supports front-end routing proves to be an excellent solution for shippers.
Partnering with a Third Party Logistics Partner
Relying on experts for freight audit and bill payment is a cost-effective strategy. A third-party logistics provider offers this service while providing resources to optimize your freight routing. At TLI, our team conducts shipping invoice audits and grants complimentary access to a cutting-edge TMS system.