Top 5 Guide: (1) What is Freight Audit (definition)

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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.

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 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.