How does Outsourcing Freight Bill Audit Save Your Money?

The process of Outsourcing Freight Bill Audit can catch over a hundred plus errors from invoices, and this might be a low figure. If unmanaged, these errors will seriously affect a company’s bottom line and increase overheads. And an in-house alternative of processing freight audit and payment will not catch these errors, indisputably raising the stakes.

Outsourcing Freight Bill Audit

The process of freight audit requires a careful examination of a company’s freight bills are examined and have to be adjusted and verified for accuracy, which is no simple task. There will also be an initial verification procedure to make sure the invoice has not already been processed, eliminating duplication.

Detected errors will be informed to the carrier by the shipper’s freight audit and payment company for its rectification and for issuing a new invoice. In short, freight bill audit process makes sure your actual freight invoice matches what you were quoted at the time of shipment.

And these days outsource logistic documentation services are highly preferred by logistics business firms as it offers rapid turnaround times, enhanced accuracy levels, and cost-efficiencies. All their resources are saved, including time, and it gives more core competency focus which will ultimately boost the company bottom line.

The Common Errors Found through Freight Bill Audit


Shipper Inaccuracy : 

Shipper Inaccuracy is caused by the shipment staff making the carrier acquire wrong shipment information. The shipper might estimate the wrong weight for a shipment and the cost for the same will be given as their client’s shipping cost, which is shown as a loss in shipping fees by you.

Detention :

Detention is a penalty charge received by the shipper who delays the carriers pick up beyond the allotted time frame. And there are two ways to this type of invoice error where the carrier’s negotiated hourly detention charge will be either more or the hours of detention will be more.

Accessorial Charges :

Accessorial Charges are charges received from the carrier for their freight services performed beyond normal pickup and delivery. These deliveries can be of inside delivery, lift gate, residential pickup or delivery, re-consignment, or limited access delivery.

So how exactly are offshore outsourcing freight audit & payment  providers critical to your organization and in saving your money?

  • Freight audit and payment services will result in an immediate return on your investment due to the enhanced scrutiny procedures eliminating the above data errors as well as any overhead labor costs.
  • Auditing process carried out in outsource logistic documentation comes with a good average error recovery rate. This will drastically change and benefit your logistics business’s bottom-line.
  • Apart from the savings from error corrections savings, freight audit & payment providers will also benefit you in other ways. This is the cost of labor in invoice verification, processing, and payment made for internal freight invoices. Hence outsourcing audits save a significant amount of money which will amount to almost half of your internal operational costs. And these services are always reasonably priced.
  • Auditing through outsource logistic documentation is highly effective as you are saved from any investments (infrastructure, technology, staffing, etc.). This is because the outsourcing partner already has all these in place within their organization. All their combined competency of technologies and the experience of the proficient staff is highly responsible for the accuracy levels in outputs.
  • 3PL or offshore outsourcing freight audit & payment providers will always assure you peace of mind with their data security/confidentiality measures. This prevents any type of data breach, leaks, corruption, or manipulation.

This is how third-party or outsourcing freight bill audit services ensure you receive enhanced levels of cost-effectiveness and efficiency for enhanced business growth and development that will give you a competitive edge in the global scenario.

Post Author: Sarah Richardson

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