Transcribed

What is Freight Audit and how can it help you?

CONTROLPAY O PRESENTS What is Freight Audit? How does it save me Freight Audit is the process of examining and verifying freight bills for accuracy money? Reduction of freight cost by 3-8% • Full-time employment savings *A freight bill is an invoice from a Logistics Service provider to a Shipper. On-time payment INVOICES What are the (hidden) benefits? Cost Allocation & Coding • Putting Shipper in control of administrative processes Elimination of • Creating unified and efficient processes wrong billing • Visi bility (costs, shipments, contracts and the process) • Centralization and standardization of data Reduction of paper One data source for different departments (Sourcing, Finance, Operations) Results of working with an outsourced provider Elimination of Desired visibility in multiple areas 100% correct wrong billing рayment Inhouse staff Advanced reporting (BI) focusing on core tasks Standardized UALITY Transparent audit trail processes Controlled environment Why is a Freight Audit provider needed? 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 Errors in invoices (Un-announced ) update of rate tables - Duplication - Different invoices for the same Adding costs, conditions or rules after tender-process shipment Carriers have a Limit time horizon for Business rules: wide variety of 'additional' costs loading/unloading: Demurrage Taking the highest of agreement rules Fuel Surcharge Did you know Carrier errors are difficult to identify and moreover, the recovery process is very labor intensive. In Europe there are only around 5 companies that provide Freight Audit services on a • International complexities in logistics are driving the need to have a freight auditor. European and global scale. 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.

What is Freight Audit and how can it help you?

shared by ControlPay on Sep 02

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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, whet... her 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. Because of rising logistics costs, companies are looking for effective ways to be in better control of transportation processes. Costs for everything from hiring truck drivers to storing goods in warehouses are primed to rise, driven higher by an improving economy, reduced capacity and coming interest-rate increases, said Rosalyn Wilson, author of the Council of Supply Chain Management Professionals’ annual State of Logistics report. The report, which measures the total transportation and logistics spending, shows businesses have kept supply chain costs tamped down tightly since 2009 as the economy has moved forward in fits and starts. But the industry is about to pay for its lack of investment, as improving growth drives up demand for consumer goods, industrial equipment and other products. Shipping volumes will soar, and capacity will struggle to keep up, particularly in the trucking business, which already faces a driver shortage. 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.

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ControlPay