Today we’re taking a small sidestep from the regular freight audit path, and we take you on route to bust a long-living parcel freight myth in the shipping industry.
But before moving on, let's distinguish parcel audit from general freight audit and payment. Parcel audit (also referred to as small parcel /package audit, or shipping auditing) is often performed by shippers of all sizes.
The parcel freight audit process mainly focuses at finding incorrectly billed charges on freight invoices, however the majority of companies that search out firms to perform a parcel audit are looking for late package refunds. Specifically, unclaimed late package refunds have shown to be as high as 5% of the total freight spend.
Extra Info: 5 Ways to reduce parcel shipping costs
So what is the big parcel freight myth?
Just because of the nature of parcel freight, being a light-weight package sent at a relatively low price people think savings are not really to be achieved when you apply freight audit to parcels. This is far from the truth!!! Our Director of Global Business Development Pieter Kinds recently wrote a very interesting blog on how to achieve cost savings on parcel freight using an outsourced small parcel freight audit solution.
The article gives you a closer, professional viewpoint on the following complexities:
- Why parcel billing is more complex than you think
- The less obvious points with rate structures
- Regular errors in parcel freight invoices
How do we perform parcel audit?
Carriers make more mistakes than you can see with the bare eye when you do a random check-off the big stack of paper you receive from your carriers.
Doing the audit as a Freight Audit provider takes a customized approach to each and every carrier. Data mapping is unique and the rate structure is often unique. This leads to customized programming and analyzing almost every time we set up a carrier for a customer.
Based on the data provided by the parcel carrier we rate the shipments against the rates and contracts and the received order data if available. The result will be sent to the carrier either by the customer or ControlPay in order to give the carrier an opportunity to explain his calculation. After that analysis a credit note will be requested from the carrier and further processed.
Eliminating errors in your freight invoices save you up until 5% of your freight spend in general. Managing this process in-house is a very daunting task as you need to have a good system and you need to maintain it all the time as rates and surcharges can fluctuate on a regular basis.ControlPay can also be requested to handle the recovery directly from the carriers. If we can help you in any way with reducing small parcel costs, please send us an e-mail at firstname.lastname@example.org