Outsourcing Freight Audit: why Freight auditing connects your most important divisions
Outsourcing your freight audit and payment is one of the three options you have as a shipper. If building your own solution and using the freight modules from your TMS or ERP provider is not what you need, outsourcing is the way to go. Studies show that the number of shippers outsourcing the process continues to rise. According to the 2017 3PL Study, the most frequently outsourced activities of shippers are domestic transportation (83%), warehousing (66%), international transportation (63%), customs brokerage (46%) and freight forwarding (46%).
The next more strategic outsourced activity is Freight Bill Auditing and Payment. Comparing these figures with those of last year’s study indicates movement towards increased outsourcing.
You are in control
Taking Full Control over the freight spend and looking beyond that is what your core business should be all about. Topfocus on receiving correct invoices rather than overpayments and shifting from manual and ad-hoc work to handling exceptions and reporting. A Freight Audit Provider ensures that customers pay the right amounts for their freight costs. Duplicate and incorrect invoices are intercepted and corrected. The complexity of the logistics market makes it even harder to make sure that the carrier only gets paid after determining that the freight invoice is a 100 % accurate and accounted for. Think about different charges, discounts, incorrect calculations, late shipments, taxes, fuel surcharges, rate indexes and accessorial charges. Did you know that nearly 80% of companies shipping goods are overpaying for the services delivered?
People often fail to look beyond the typical cost savings benefits of FAP. Also, the data out of the FAP process can be used much wider than just for Logistics or Finance.
No more islands-in-the-stream
Your FAP connects important divisions in your company where they normally wouldn't collaborate. For example, your finance, operational and logistics departments all have their own goals. Streamlining these divisions will benefit each of them. Automated Cost Allocation, Full process visability, Cost saving, Full acruals and Business Intelligence at your fingertips. Clearing up these inconsistencies accounts represents a significant risk to gross margin. At last but not least, logistics intelligence drives savings, efficiency and value in Logistics, Finance and Operations.
About ControlPay Global Freight Audit and Payment
Since 2002 ControlPay is the largest freight audit provider in Europe. Since we started our company 15 years ago, we are much more focussed on the logistics data. This approach has led to a very tight process and 100% waterproof audit whether it be pre-audit, post-audit or self-billing. Customers know that we will always go to the bottom of an issue and that we are very driven to rule out any repetitive issues. This is also driven by the fact that we try to make processes as efficient as possible, low touch for all parties involved and we are very pro-active in signaling points of improvements as we see a mutual benefit to make processes more transparent and smoother.
We end this blog here for now. We hope you enjoyed it and find our insights useful. If you require more information, please do not hesitate to contact us. We are always open to an open-ended meeting with the goal to finding the best possible freight audit & payment set up for companies around the globe. -> Visit our website for more information
About the Author
Started in 2018, Rolf Bax manages all ControlPay’s online appearances, including all social channels of ControlPay, blogs and creates up-to-date content for the HUB. Controlpay's HUB provides industry professionals the most relevant logistics and supply chain topics.Follow ControlPay on Twitter More Content by Rolf Bax