The Importance of Freight Invoice Audit and Payment for Your Company

Published: 23rd November 2010
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When visiting a local importer or online order fulfillment (ecommerce order fulfillment) you usually end up sitting down with their logistics manager to learn how they were coping with these economic hardships and the flood of shifting freight rates and surcharges. I was surprised on the trust they placed in their transportation providers to invoice the right freight charges as per their negotiated rate agreements. Perhaps, more amazed to learn that their account payable department had a general naivety about what all those surcharges on the freight invoice meant. Using Social Media Logistics to help your shipping operation and customer service.

Logistics industry experts unwillingly acknowledge that it is not unusual for errors to be found in one of every three freight invoices. As the company does some Freight Invoice Audit they will discover errors on their invoices. These errors can usually range from invoicing the wrong shipper for the wrong movement they made to surcharge miscalculations upping the invoice of the freight a few more dollars.

A mainstay of the logistics and supply chain software industry that is gaining momentum in this economy is the industry of freight invoice audit. Every company is searching for a lot of ways to lower costs and get the maximum value out of their total transportation spend. One thing the shippers have in common is that they all have to pay their freight invoices because the carrier company usually doing an invoice pre-audit to avoid conflict which might arise in the future. Only a small percentage does detailed freight invoice audits. A lot of companies are still operating by the old-fashioned way, by filling out forms, checking the orders if it correspond with the purchase orders to bill of ladings to an excel rate sheets or scribbled a handwritten notes then writing out checks by hand and then mailing them.

In this budget tight economy where cash is the king and credit is continuously get an increasing tight, the corporate use their initiatives for obtaining SaaS-based freight audit software is absolutely gaining in importance. Corporate leadership knows the value about their logistics departments that are capable in making or breaking the company's foundation. And, failure to do freight invoice auditing is by far one of the biggest cash flow losses. That is the reason why an invoice pre-audit is needed.

Some companies outsource their freight invoice audit function. The greatest option is to utilize SaaS software which is affordable and quick to implement within your logistics and accounts payable departments; and easy to incorporate into your other systems. Companies using the logistics industry powerful Tariff-Trek! and Pay-TreK! software can swiftly audit freight invoices for accuracy saving money. In addition to freight audit, these software modules store carrier rates and customer pricing with the capacity to track costs in a real time as orders travel from purchase order to bill of leading to final delivery in the entire Logistics Management Lifecycle.

Smart logistics managers are busy analyzing and auditing their freight invoices. SaaS+plus(TMS) software is very much affordable and enables faster, more granular and event-driven decision-making with flawless visibility, collaboration and cost control in your entire Logistics Management Lifecycle.

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