There's more than one way to skin a cat when looking at controlling logistics costs and optimizing transportation management. Carefully controlling your shipping invoices is one of those methods, whether it's during the pre or post activities of your freight shipping. By conducting consistent audits, you will rule out overbilling, be capable of selecting the most efficient carriers, gain strength in future rate negotiations and overall, choose the best transportation strategy for your company. For many companies, outsourcing could be the most economical way to properly audit and process freight invoices. Not only Fortune 500 companies with freight budgets ranging from 100 million to 1 billion EURO are typically interested in freight audit services , but also companies with a freight budget of 5 million EURO and up now start to realize the that there is money to be saved in logistics via freight audit outsourcing services. Also according research of inboundlogistics.com, freight costs can make up 10% of an organization’s expenditure. As a consequence of rising freight costs, an increasing number of organizations has been more pro-active in controlling freight cost and have outsourced the freight auditing process to freight audit specialists.

1. CONTROLPAY
PRESENTS
What is Freight Audit?
How does it save me
money?
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Reduction of freight
cost by 3-8%
Full-time employment
savings
On-time payment
Freight Audit is the process
of examining and verifying
freight bills for accuracy
*A freight bill is an invoice
from a Logistics Service
provider to a Shipper.
What are the (hidden) benefits?
Cost Allocation & Coding
Putting Shipper in control of administrative processes
Creating unified and efficient processes
Visibility (costs, shipments, contracts and the process)
Centralization and standardization of data
Reduction of paper
One data source for different departments (Sourcing, Finance, Operations)
Elimination of
wrong billing
Disconnection between shipment details and actual invoiced amounts as they are not
managed through the same platform.
A Freight Audit provider does make that connection.
This leads to advanced analysis capabilities
Results of working with an outsourced provider
Why is a Freight Audit provider needed?
- Duplication -
Different invoices
for the same
shipment
Carriers have a
wide variety of
'additional' costs
Limit time horizon for
loading/unloading:
Demurrage
Business rules:
Taking the highest
of agreement rulesFuel
Surcharge
(Un-announced )
update of rate
tables
Errors in invoices Adding costs,
conditions or rules
after tender-process
Did you know
In Europe there are
only around 5
companies that
provide Freight Audit
services on a
European and global
scale.
Carrier errors are difficult to identify and moreover, the
recovery process is very labor intensive.
International complexities in logistics are driving the need to
have a freight auditor.
Also the lack of visibility, the need for control, cost savings and
the need to pay carriers on time are motives for freight invoice
auditing.
No alignment between the sourcing team, the operations team
and the finance team could lead to wrong invoicing slipping
through.