Transport Audit: The Typical In-House Pitfalls

September 11, 2015 - 12:30

Freight Audit is nowadays generally considered as one of the most important tools for reducing rising logistics costs. A recent study shows that 80% of top logistics and supply chain managers consider freight audit the ideal road to improvement and control of logistics costs, leaving other characteristics far behind in the survey.

Nevertheless, the questions that remain...how are companies going to achieve a well structured, transparent and efficient freight audit trail?

There are two roads to freight invoice auditing:

1. Inhouse

Own staff checking, processing, coding and paying freight invoices.

-Manually or

- Using in-house software (TMS).

2. Outsourced

A third party checking, processing, coding and paying freight invoices on customer's behalf.

Almost 50% of the companies that have the capacity to gain considerable benefits from freight audit are currently using an outsourced provider. Click on the graphic below to discover the usual pitfalls companies stumble against when they decide to audit their freight invoices In-house, versus the specialized, cheaper and fully dedicated approach of a third party.

DOWNLOAD: ControlPay - eBook: Advanced Freight Audit

Almost 15 years of FA experience has thought us that this specialized, and time demanding line of work, brings a lot of difficulties if kept in-house.

The results of in-house freight invoice auditing

Inefficiency and a variety of processes
Not having the desired visibility in multiple areas (shipments, spend, process)
Overpayment
Lack of control
Room for interpretation of business rules, calculation rules
No tool in place to properly audit complex business and calculation rules
Analyses potential is limited
Non-transparent audit trail
Dependency on the admin performance of your carriers
Annoying manual work, delays and long-lasting issues

Transport Audit: The Typical In-House Pitfalls

There are two roads to freight invoice auditing:

The results of in-house freight invoice auditing

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