Freight bill auditing is an essential process for businesses that depend on shipping to deliver products to customers. With the rising cost of shipping, it’s essential to make sure you aren’t overpaying for these services. One of the most effective tools to achieve this is freight bill auditing. But what exactly is freight bill auditing?
Understanding Freight Bill Auditing
Freight bill auditing is the process of reviewing shipping invoices to confirm the charges you receive are the correct amount. It ensures charges match the original quote and the Bill of Lading (BOL). Because of changing factors like gas prices, weather, road conditions, and carrier availability, discrepancies in freight charges can arise.
These discrepancies, if left unchecked, can lead to unnecessary costs. This is where the real-time benefits of freight bill auditing come into play.
How to Save on Shipping Costs with Freight Bill Auditing
As shipping costs quickly mount, minor mistakes in billing could lead to significant overcharges. By regularly reviewing your invoices, you can avoid these costly errors and save money on shipping expenses. Furthermore, freight bill auditing helps identify areas where you can negotiate better rates with carriers.
Here is some guidance on how to start auditing your freight bills to save money:
- Collect Your Invoices: Gather all your shipping invoices from the past several months to establish a baseline. Then identify any trends or patterns in shipping costs. This will give you an accurate snapshot of where things stand regarding delivery fees.
- Review Your Invoices: Once you have your invoices, review them thoroughly to detect any mistakes or discrepancies. Be sure to look out for incorrect weight or class information, as this could significantly raise shipping costs.
- Reach Out to Your Carriers: If you identify any mistakes or discrepancies, contact your carriers so they can rectify the issues. This may involve providing additional documentation or evidence to support your claims.
- Track Your Savings: Once you’ve rectified any mistakes, you’ll need to monitor your savings over time. This helps assess the impact of your freight bill auditing efforts. It also helps identify areas where you might negotiate better rates. This will help quantify the effect of auditing efforts and identify areas for potential cost-saving opportunities.
- Hire a Freight Bill Auditing Company: Auditing and paying freight invoices is a time consuming and daunting task. Hiring professionals can be beneficial. At Hatfield and Associates, we help companies save 15-30% annually on average. Learn more about our freight audit services.
Common Mistakes During Audits
- Clerical Errors: Simple human errors can lead to significant cost implications.
- Rate Discrepancies: Differences between quoted and billed rates often go unnoticed.
- Incorrect Product Analysis: Wonful analysis can lead to higher freight charges.
- Unwarranted Accessorial Charges: Charges that aren’t applicable, but still receive a bill.
- Duplicate Payments: Paying for the same service more than once is a common oversight.
The Power of Regular Audits in Cost Savings
Regularly auditing your freight bills, whether monthly or quarterly, is a strategic move in optimizing your supply chain logistics management. By partnering with experts in the field, you can ensure that every freight shipment is stored, tracked, analyzed, and adjusted efficiently. This not only guarantees cost savings, but also streamlines the entire freight audit process.
Why Choose Our Freight Bill Auditing Services?
At Hatfield and Associates, we pride ourselves on offering more than just access to a vast network of carriers. Our expert auditors, backed by advanced technology, efficiently process invoices from every freight carrier mode. They know how to navigate the complexities of pricing and service options, ensuring your transportation spending is cost-efficient.
Our real-time freight audit and payment system ensures accurate invoice data review, simplifies payment processes, and helps companies save 15-30% annually on average.
The Benefits of Freight Bill Auditing
- Cost Efficiency: Identify and eliminate unnecessary freight charges.
- Real-Time Analysis: Immediate scrutiny of freight invoices ensures timely corrections.
- Streamlined Payment Processes: Avoid duplicate payments and ensure accurate freight payment.
- Enhanced Supply Chain Management: Optimize your transportation and logistics strategy with accurate data.
- Transparency: Gain a clear understanding of your transportation spending.
Freight bill auditing is more than just a cost-saving tool. It’s an essential component of a robust and efficient supply chain. By ensuring all freight invoice audits are correct, you save money, and enhance the efficiency of your transportation and logistics operations.
For a comprehensive and cost-efficient freight bill audit, trust the experts at Hatfield and Associates. Call us today at +1 (901) 507-2615 for a free demo and witness the transformative benefits of freight bill auditing firsthand.
Frequently Asked Questions:
Why is freight bill auditing essential?
It’s essential, as it helps prevent overbilling and incorrect charges, comply with contractual agreements, and identify cost-saving opportunities.
What types of charges are audited during freight bill auditing?
Charges typically relate to transport costs. Such as freight charges, accessory charges and fuel surcharges.
How is freight bill auditing performed?
You can perform freight bill audits manually, or you can use a software. It involves reviewing the bill of lading, verifying rates and charges, as well as inspecting for accuracy and compliance.
What are the advantages of utilizing automated freight bill auditing software?
Automated software can simplify the auditing process, reduce errors and discrepancies, and give real-time insight into freight spend and performance.
How can a company reduce freight expenses through freight bill auditing?
It helps identify overbilling and incorrect charges, negotiate better rates with carriers, and optimize shipping routes and modes.
How does freight bill auditing help with compliance?
It helps with compliance by verifying that carriers adhere to contractual agreements, meet service level agreements and meet regulatory requirements.
How does a company choose an audit provider for freight bill auditing services?
When selecting an auditing provider, companies should consider factors such as their experience and expertise, technology capabilities, reputation, and pricing. Another factor to consider is their invoice processing knowledge and capabilities. When making their choice, ensure the provider offers all these items.
What are the key performance indicators (KPIs) used in freight bill auditing?
Key performance indicators (KPIs) include metrics such as: accuracy rate, exception rate, savings rate and cycle time.
How often should a company conduct freight bill auditing?
Companies should conduct periodic freight bill audits, depending on their shipping volume and frequency. At a minimum, you should conduct quarterly audits.