The evolving industry of Freight Audit and Payment
Is managing freight expenses in-house current day still a solid practice? In this post we look at the evolving market of freight audit and payment solutions and the future of the industry.
The pain or gain of the globalization of financial supply chains
Today’s transportation environment is becoming more global and this shift is also noticeable for financial departments of companies that ship globally.
Freight expenses make up a significant segment of the financial supply chain. Businesses shipping goods can significantly improve performance and gain expert insights that will lead to competitive advantages by clearly understanding the financial ramifications of shipment flows.
Freight Payment and Auditing: Solutions for Lean companies
Companies trying to manage freight costs and spend in house are risking to miss out on serious logistics costs savings. This is why many logistics and finance departments of mid-size and large enterprises are seeking Freight Payment and Audit providers. To help them build a structure in Transportation payment flows and give them full control and transparency. For both the Logistics and the Finance department.
Freight payment and audit systems are often used by manufacturers and logistics integrators to process, audit, verify and correct freight-related invoices, as well as execute their payment – typically via self-billing. But next to those core services, Freight Audit Providers offer invoice processing, analytics and reporting, freight optimization, Freight Tender and other services and solutions.
ControlPay - Global Freight Audit and Payment is over 13 years active in the FA&P sector. The company, with its headquarters in Breda, the Netherlands, was established by Karel Kinds and his son Pieter Kinds to support large multinationals in managing the complexities of freight billing. ControlPay's self-build Freight Audit System is currently used by many multinational firms, as well as some of the largest carriers.
According to Pieter Kinds, director of business development at ControlPay, the main aspects of freight audit providers has always been the need to build the system around the shipment and the data that it creates. The logistics data is the “main element” of the freight auditing process.
“With this philosophy in mind we have created our freight auditing system. But moreover, it works as the common thread throughout everything we do, our approach to clients and all documents and functions on our audit platform. By working in this fashion, we guarantee full freight transparency and logistics visibility".
Although the benefits of FAP systems in general are divers from company to company, depending on their complexities, system landscape and carrier base, good freight visibility and data visibility are of growing importance for most companies looking for an outsourcing solution.
“It allows users to optimise the carrier base, reduce complexities in the rates and use clear data in tender processes and negotiations,” he says. “Next to that, eliminating overbilling in invoices is always a driver, as well as ensuring on-time payment through a more efficient process. Measuring carrier compliance and performance is also an aspect that gets more and more attention.”
Kyiv mayor Vitaly Klitschko opening the Kyiv Post Job Fair 2016 together with ControlPay Global Business Director Pieter Kinds
Riding the road of the future: Freight Audit & Payment
With a view on the future, Kinds is convinced that the 'people aspect' of Freight Audit and Payment software systems will also be more influential over the upcoming years."Freight audit is indeed a managed service, but I believe that there is an “increasing need for deep logistics knowledge to support global companies with network changes, rate and contract optimisation and overall simplification of the logistics set-up”.
“As the automotive business is a very dynamic one, there is often a lack of focus and resources to strategically optimise the structure and putting out fires on a daily basis is what is done mostly,” he says. “A strong FA&P partner can distinguish himself by adding professional services and consultancy to his portfolio to help to change this.”
What to look for in a Freight Audit and Payment Provider
Freight Audit and Payment providers can support the finance and logistics department of companies by streamlining operations and improve a companies bottom line. As a global Freight Audit company, we advice to make a thorough selection of possible providers, before engaging a RFQ /RFP.
It makes sense to identify the core services very single FAP offers, and the to identify the core qualities with regards to extra services, geographical strength and financial stability.
Contact ControlPay now for more information
If you are looking for a global or EMEA Freight Audit Provider, or Logistics Visibility Solutions, please don't hesitate to contact us. For more information about our service offering, click on our services page in the top menu.