What is Freight Audit (definition)

Reading time: 3 minutes. Updated 5.5.2020

Freight Audit is the process of verification and analysis of freight bills for the purpose of cost savings and deep logistical insights.

This is a complex field, designed to provide businesses with a competitive advantage, improve logistical processes and support international and regional companies in their desire to optimize operations and expenses. There are three fundamental aspects to Freight Audit services: the traditional financial aspect, the data and analytical aspect and the customer support aspect.

Freight Audit is done either through manual review of freight bills or through the employment of advanced software, capable of analyzing and tracking incredible amounts of logistical data to provide superior billing accuracy and logistical analysis. Freight auditing can catch issues and overbilling even at early stages and provide explanations for various situations. Advanced service providers in this field often combine human expertise with technological innovation for the best results.

What is freight audit

The traditional financial aspect of Freight Audit allows companies to reduce their expenses considerably when it comes to logistics. In complex logistical operations, billing inaccuracies often crop up between the shipper and the carriers. This happens due to the complexity of contracts, transportation and warehousing methods, number of parties and shipments involved and many other factors. The traditional financial goal of Freight Audit and payment is to find and eliminate these inaccuracies, saving companies from overbilling and seriously reducing expenses. This not only allows for a better “bottom line”, but also improves the financial health of any logistical operation.

The analytical aspect is a feature of Top Freight Audit companies that use software and high-level business analytics to not only reduce client expenses, but additionally – provide a clear and deep understanding of their own logistics. This empowers business by showing the path towards optimization, fixing any long-standing issues, and improving control over their own logistical operations and relationships.

The customer support aspect, while being a fundamental feature of any Freight Audit provider, differs based on the technological nature of the company. High-technology Freight Audit firms are able to not only support customer requests, but can also offer custom-tailored solutions based on the unique nature of logistical operations of the client. 

Information is key for every successful enterprise. In the early stages of freight invoice auditing, it was all about making sure transportation invoice amounts were correct. Today's freight invoice auditing has evolved to a much broader service that provides valuable strategic reporting that enables you to stay ahead of the competition.

The ControlPay freight invoice auditing platform is an utterly logistics-driven and collaborative platform that is completely focused on handling the complexities of international freight invoicing flows. The system is fully web-based and enhances visibility on logistics data and processes to both shippers and its’ carriers. While most freight audit companies and post audit providers focus on payments and freight invoice data, ControlPay's primarily works with logistics data. As financial data is a mere result of your logistics operations, we step into the process here to standardize the financial implications and prevent exceptions and fix issues before they even occur. Thus the boundaries of your transport contracts are always abided by.

If you want to read more about Freight Audit and payment check out our infographic - everything you need to know about Freight Auditing

 

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