What is Freight Auditing and how does it save me money?

August 17, 2015 Ken Klaver

controlpay. freight audit

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, whether 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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About ControlPay - The largest Freight Audit provider in Europe

ControlPay is the leading Freight Audit Service Provider in Europe, working globally for many well-known multi-nationals. Our focus is aimed at serving our clients in Europe and to support their needs globally while increasing our  value-added  service portfolio as we see there is a strong need for additional services. Examples of our innovative approach are our transport order platform and the supply chain finance services we will offer.

ControlPay saves your organization costs on labor and on average 3% on the actual freight costs. ControlPay does not only audit the invoices from your logistic service providers, but also enhances the business processes around freight costs settling. From contract implementation to cost calculation, issue resolution, invoice reception, registration, audit, automatic cost allocation and automatic posting of the invoice, ControlPay serves the full trail from Transport Order Booking to Final Payment. 

Our freight audit platform gives you 24/7 insight in your accruals, status of the transport and status of the invoice or payment. We support efficient processes like SelfBilling and take away all the hassle and labor you have around invoice audit. Next to that, we offer value added services like a Tender & Bidding Tool, Early Payment Services and an (E-)Invoice Creation Tool for suppliers.

ControlPay provides highly detailed Freight Audit services via its fully web-based audit platform. Our services are driven by deep logistics knowledge and the flexibility to customize to the needs of our multinational customers who we serve on a European or global scale. Our managed services are a strong combination of our unique audit platform together with well-trained dedicated audit teams who work in close cooperation with your Logistics and Finance departments.

freight audit. ControlPay

Extra: How to Improve Shippers - Carriers Relationships

Everyone has an opinion on how to reduce trucking costs from shippers, receivers and Logistic Companies. They all are known about the LTL services for making Relationship Strong with shippers.
Some advice on how to make strong relationships with shippers/carriers, by Mark Hamblin, vice president of sales, west, for LTL carrier.
 
1.       Work for Accommodation :  
Determine which lanes and freight work best by doing work with your carriers.
With doing collaboration with carriers to ensure you are adding profitable business to their connections. It will make long time relationship.
 
2.      Stick on your Commitment :
Fulfil your commitment to hold your business on growing path. Decide prices on facility you provide. Supplying in accurate data or not shipping in the lanes and tonnage you commit could lead to negotiations.
 
3.       Provide Important Data :
Provide important data like lane and tonnage data, Freight Characteristic percentage and monthly volumes to carriers. It helps to assume locations wise changes in specific freight characteristics, or seasonal changes in volume.
 
4.      Share Good Opportunities : 
 
When you know about new opportunities also share it with your carriers as partner. By this you can save your time and expense of Formal RFP and carriers will earn more from your business.                
 
5.       Help Your Carrier divers : 
To make your facility more driver friendly than help your carrier drivers. Make long term relationships with carrier drive because of he knows your business procedure very well.
 
6.       Make some offers. 
Talk to your carrier about operational changes you can make that won't impact your operations. For instance, if you already run a weekend shift, why not offer weekend trailer swap options to your carrier?
 
7.       Give some time to carriers : 
When you begin a new partnership, give the carrier time to get its system ready and trained to take on the new lanes and freight.
 
8.      Arrange Meeting : 
Arrange meeting with your carriers to review performance metrics, and new services and options, and to strengthen the relationship. Working together prior to renegotiation will improve and solidify the partnership.

9.      Use Technology : 
Shippers expect carriers to provide real-time data on shipments, and carriers have gone to great expense to do so. In return, shippers should be willing to use programming options that provide a smooth, accurate transfer of data without requiring additional manual work on either side.
 
10.   provide accurate information : 
A good relationship at all levels of the organization is the best way to ensure the shipper/carrier partnership is strong and healthy, which reduces costs and improves service.

Source: Shipping Exchange


More Freight Audit content by ControlPay:

  1. ControlPay - Global Freight Audit Services
  2. The advantages of Freight Audit 
  3. Advanced Freight Audit Platform eBook
  4. ControlPay Business Intelligence Platform
  5. Why ControlPay is different

ControlPay. freight audit

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