Freight audit processing

1. Freight Audit and
Payment

2. Freight audit
• Freight invoice and payment is the most necessary feature for many
businesses across the world. Most of the time you don't know where the
money is being spent but not anymore, once we knew, it costs in
transporting goods. Businesses are spending 30 per cent of their amount
on transportation apart from manufacturing the products, labour cost,
and other utilities. But they don't know the fact that they're spending
their money effectively or not because there is 80 per cent of the time
companies are charged for nothing. Carriers are the one who responsible
for transporting goods across the world, they use different platforms to
deliver the goods that meant to go. Being the ones who decide the cost
of delivering the goods, sometimes they charge excess amount from the
companies, technically by mistake most of the time as they deliver the
products to the destinations.

3. Why freight audit?
• You might wonder why freight audit and payment? It's the one
which helps the businesses from being charged extra, it also helps
them to claim the potential refunds, tariffs, and discounts as
mentioned in the contract when it made between the carriers and
businesses. In fact, businesses can't afford to audit all their
invoice bills because they need a team to calculate the charges,
not only that it also requires some technical help in terms of the
software's and customer executive team to rectifying the faults by
negotiating with the carrier.

4. Ways to validate freight invoice bills
• By three ways the bills are being audited in the business:
• Manual Comparison
• Software’s
• Third party freight audit providers

5. Manual comparison
• Here the bills are validated manually in the company itself.
Companies need to hire a team to handle the freight bills, it cost
them a lot more than any other methodology.

6. Software’s
• The software is another solution for freight bill processing, still
requires a team to audit the bills in the software. Also, companies
have to spend an amount on buying licensed software, installing it
in the system, operate and maintain the software. It is an
expensive method to validate the freight bills.

7. Third party freight audit providers
• It's the cheap and best solution for the businesses involved in
importing and exporting products because it consumes less amount
for validating the bills than the self-billing adopted by most of the
companies. Third party freight audit providers validate the invoice
bills generated by the carriers with care and patient. In some
cases they even contact the carriers for the unsolved invoice bill
issues, end of the day it brings back abundant money that being
spent for no reason. This way businesses can take benefit and runs
a cost-saving methodology in the transportation department.

8. Types of freight invoice bills
• Manual bills
• Electronic bills

9. Manual Bills
• These bills are normally sent through emails or delivered by
carriers in person, then the data in the bills are manually fed into
the software for validation. Once the data entry process is done,
the bills are checked for accuracy in the software which normally
performed by a team comparing the freight quote during the
shipment with the freight bills generated after delivery.

10. Electronic Bills
• It also called as EDI bills, these bills are automatically fed into the
system without any pre-data entry process. Then the bills are
validated for accuracy in the auditing software.

11. Freight Spend Management
• The freight spend management based on the control of invoices
and transport data, analyses your expenses and flows, its strategic
decisions allows you to control the transport your transportation
budget. Third party freight audit and payment providers hold this
method to bring benefits to their clients.
• It is an alternative form of freight audit and payment, helps the
companies to save a lot more money.

12. Supply chain solutions
• From big data to business intelligence, utilising proven business
processes, all players in the supply chain are now concerned with
digitization. With freight spend management technique we can get
a solution to the freight bills and supply chain.
•
• Making information simple, intuitive and easy to use is the goal of
freight spend management with its turnkey alternatives. They are
offered in SaaS mode, are based on your business processes and
are adapted to your needs.