Many people in logistics think of Freight Audit as a function that delivers a cost saving as it takes care of taking out overbilling. Is that really correct?
One can argue that making sure that the correct amount is paid is just good practice and it should be standard practice. As such, we at ControlPay believe that this is not a benefit, but a normal feature of our service.
It becomes more interesting when we talk about process improvement and data visibility, the long-term benefits that really provide an added value to the supply chain. Often processes around invoices are not well mapped, unclear and spread across different parts of the organization. Streamlining these processes take stress out of the organization, will eliminate double payments, takes out delayed payments and gives visibility to carriers. This value is hard to qualify, but it makes life a lot easier for Finance, Logistics and carriers.
Strategic Data benefits — Global Processing of Transport Data
Secondly, besides the process improvement and data visibility, the data coming out of the audit process are the key to the real value Freight Audit delivers. This is actionable data and allows clients to optimize, streamline their operations and tender processes and thus allows the client to be in total control of their logistics set-up and costs. It also allows for ongoing improvement that brings Freight Audit to a strategic level where multinationals can save millions as a result.
About the Author
Pieter Kinds (40) is Director at ControlPay, a global Freight Audit provider and the CEO of TenderTool, a cloud-based logistics sourcing platform. Active for over 14 years, Pieter is eager to share insights, thoughts and experiences via his blogs.Follow ControlPay on Twitter More Content by Pieter Kinds