Freight invoice auditing: The ever-increasing importance of technology

October 22, 2015 Pieter Kinds


Everyone in the logistics industry is fully aware that supply chains are becoming more complex. On top of this increasing complexity, technology has already started to play a more significant role when measuring transportation performance. In the world of freight audit, this is no different.

The days of just taking out overbilling and carrier invoice mistakes are behind us. Data reporting (BI) and data centralization have taken a big piece of the pie that represents freight audit services .

The development of freight audit & payment enables us present-day to:

- Deeply analyze transportation data
- Gain transportation intelligence
- Create visible freight trails
- Consolidation of invoices
- Select the most efficient routes, transport modes and carriers
- Ultimately make strategic decisions (based on correct data)

With all this knowledge in place, it is highly remarkable that many companies are still taking a complete different road in the search of an outsourced freight audit partner. Often decisions are not made on the basis of knowledge, technical capabilities (audit-platform performance) or realistic solutions (implementation time).

For example, we come across many carriers forced to invoice 1 shipment per invoice because Freight Audit providers from the shippers side are simply incapable of consolidating shipments. Non-consolidationNon-consolidation means that you are losing money or you need to create workarounds to calculate it correctly, undermining the essence of outsourced freight audit automation.

What to look for in a Freight Audit Provider?

Global offices, a variation of languages spoken and fancy locations often top the scorecards...surprisingly. I am not saying that above qualifications are completely negligible, but there is one far more important part to consider in the selection procedure for outsourced freight audit & payment .

Freight audit & payment Technology

The question you should ask yourself: Is your Freight Paymentfreight payment provider working on true innovation or just on optimizing of its outdated systems? Value does not come from elimination of overbilling only, it really comes from data that allows you to better do tenders, benchmarking, cost allocation, accruals, understanding your cost to serve and to simplify your logistics set-up as a whole.

Put another way: Technology really takes you the extra mile, especially in the long run of complex processes (Large Supply Chains or a wide variety of Business Units). The geographic location of the audit process center of your freight audit provider has, for example, zero influence on this. At ControlPay we bring the work (innovation!) to the people, rather than bringing people to the work.

Our freight audit platform and transportation management services are globally employable, ensuring our customers with global service guarantee.

Freight Audit: Europe different game, different rules

Many freight audit providers handle huge processing volumes in the US marketplace. Not too difficult in 1 common market with standard EDI, standardized rates, limited account coding complexity and carriers having decades of experience with Freight Payment.

However, when moving your audit towards Europe and Asia, it takes a change management approach with a pro-active provider who is flexible and driven by technology to handle non-standard processes and large complexities. Our suggestion is more than clear: Leave international processing up to the professionals, that have the needed experience with the market .

More important than anything: Freight Audit Technology


Many companies when looking at freight audit are very focused at cost savings through elimination of overbilling. But who is looking at the costs of wrong decisions based on bad data? It is impossible to quantify in large organizations, but by default companies make the wrong decisions if they don't have the right data. Our advice: Get your data right! When looking for an outsourced partner for freight audit: Focus on the transportation data!

The infographic below highlights the 10 biggest global Freight Audit providers

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