Freight Invoice Audit – Fast Money to Your Bottom Line
Posted on April 18, 2010 | No Comments
Nick Matyas asked:
On a visit to local importer I sat down with their logistics manager to learn how they were coping with these economic times and the flood of shifting surcharges and freight rates. I was a surprised on the trust they placed in their transportation providers to invoice the correct freight charges as per their negotiated rate agreements. Perhaps, more amazed to learn that their accounts payable department had a general naivety about what all those surcharges on the freight invoice meant.
Logistics industry experts reluctantly acknowledge that it isn’t unusual for errors to be found in one of out of every three freight invoices. These errors can range from invoicing the wrong shipper for the wrong movement to surcharge miscalculations upping the freight invoice a few more dollars.
A mainstay of the logistics and supply chain industry that is gaining momentum in this economy is the business of freight invoice audit. Every company is searching for ways to lower costs and get maximum value out of their total transportation spend. One thing shippers have in common is that they all have to pay their freight invoices. Only a small percentage does detail freight invoice audits. Many companies still operate the old-fashioned way, by filling out forms, matching purchase orders to bill of ladings to a excel rate sheets or scribbled handwritten notes then writing out checks by hand and mailing them.
In this budget tight economy where cash is king and credit is getting increasingly tight, the corporate initiatives for obtaining SaaS-based freight audit software is definitely gaining in importance. Corporate leadership understands that their logistics departments can make or break the company’s bottom-line. And, failure to audit freight invoices is by far one of the largest cash flow losses.
Some companies outsource their freight audit function. The best option is to utilize SaaS software which is quick and affordable to implement within your logistics and accounts payable departments; and easy to integrate into your other systems. Companies using the logistics industry powerful Pay-Trek!
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On a visit to local importer I sat down with their logistics manager to learn how they were coping with these economic times and the flood of shifting surcharges and freight rates. I was a surprised on the trust they placed in their transportation providers to invoice the correct freight charges as per their negotiated rate agreements. Perhaps, more amazed to learn that their accounts payable department had a general naivety about what all those surcharges on the freight invoice meant.
Logistics industry experts reluctantly acknowledge that it isn’t unusual for errors to be found in one of out of every three freight invoices. These errors can range from invoicing the wrong shipper for the wrong movement to surcharge miscalculations upping the freight invoice a few more dollars.
A mainstay of the logistics and supply chain industry that is gaining momentum in this economy is the business of freight invoice audit. Every company is searching for ways to lower costs and get maximum value out of their total transportation spend. One thing shippers have in common is that they all have to pay their freight invoices. Only a small percentage does detail freight invoice audits. Many companies still operate the old-fashioned way, by filling out forms, matching purchase orders to bill of ladings to a excel rate sheets or scribbled handwritten notes then writing out checks by hand and mailing them.
In this budget tight economy where cash is king and credit is getting increasingly tight, the corporate initiatives for obtaining SaaS-based freight audit software is definitely gaining in importance. Corporate leadership understands that their logistics departments can make or break the company’s bottom-line. And, failure to audit freight invoices is by far one of the largest cash flow losses.
Some companies outsource their freight audit function. The best option is to utilize SaaS software which is quick and affordable to implement within your logistics and accounts payable departments; and easy to integrate into your other systems. Companies using the logistics industry powerful Pay-Trek!