Have you ever thought about the extra freight charges added to your logistics expense bills? Each day a large volume of freight invoices is processed, and there is nothing to ensure about duplicate billing or unnecessary freight charges implied on your bills. Every year thousands of bucks may be lost due to carelessness of your employees. There must be a team which ensures that there is no any kind of mishandling of freight bills and unnecessary losses. Many businesses have such a team which handles the freight expenses, but what about their efficiency? Are they working properly, are all the bills free of unwanted charges? All questions can be answered if a chance is given to the freight audit services.
What is freight audit service?
A freight audit service is a team of experts which is generally outsourced from outside to handle freight and logistics expenses. The team audits the logistics handling of the workers inside the company to ensure that there are no duplicate billing or unnecessary freight charges implied on your bills. The team ensures that your freight just does not become an everyday necessity of your work, but it becomes a deliberate advantage.
Why freight audit service is needed?
Work and problems related to freight and logistic bills should be handled separately. They can be solved, if a team of experts works on these intricate processes. If you have an existing business and things appear to be a bit complicated, you need to take the help of Global Freight Audit Services. It may take some time to put back the scattered piece into the proper place but once done, things can become pretty easy for you to handle.
Businesses that handle a large number of freight services bills each day must take the help of freight audit services. When a large number of bills are there to be handled, the chances of errors become more. A good freight audit service is a cost and time-effective method to ensure that your team of freight is at your disposal. With the team of a good freight audit service, you can get a hassle-free process of auditing freight bills and payments. Also, cost-saving methods for the business and better productivity can be achieved annually.
However, it is not important that only big businesses should hire the freight audit services. Small businesses which are handling fewer number of logistics and freight bills must also hire freight audit services to minimize losses. If precautions are taken from beginning, the outcome is profitable.
What does the team of freight audit services do?
Many businesses wonder, how does the team of freight audit services functions, and why are they needed. Here is a brief about the functions generally performed by the freight audit service team.
Processing the invoice
The first and the most important work to be done by the freight audit service team is processing and standardizing the invoices received by the suppliers. The invoice can be in any format like a digital, scanned, hard copy, etc. No matter in which form the invoice is, it needs to be scanned thoroughly. Not everyone is expertise in going through the invoice, as it may have cost variations, hidden charges, rating errors, etc. which can go unseen by the employees. When invoice analysis is done by a team of experts the chances of errors become zero. Unnecessary losses are minimized, ultimately there is profit in the long run.
Freight compensation and audit
The freight audit service team audits the freight and logistics charges implied by the carriers, per the carrier ratings and their threshold parameters. It is done in either of two ways.
Single existing rating scale: There is an existing system for comparing the match pay in every company. This scale can be used for analysing and auditing freight and logistics charges.
Cloud-based payment system: An outsourced freight audit service is sure to have its cloud-based freight payment system, which can be used for performing match pay comparisons. If it doesn’t have, the existing rating scale of the company can be used.
Deep dive into Invoice
The team of freight audit services has many years of experience and expertise to easily analyse the depth of invoices. The team will keenly observe any cost slippage, duplicate billing, rating errors, unapproved extra charges, any hidden charges.
Dispute Handling
Last but not least, the freight audit services are also capable of handling disputes. A situation is likely to occur where the freight invoices may have been charged out of the tolerance zone. It can give rise to disputes and tension amongst the parties. The freight audit service is there to handle and cool down the situation if any such incident happens. The team will contact the freight parties for clarification and a diplomatic resolution of any dispute.
How do choose the right freight audit services?
Choosing the right freight auditors means working with a team that makes you comfortable, has a sincere understanding of your business. A team of freight audit experts can complement your team. The most important factor is a personal approach while choosing the right freight audit service. It is important to understand that freight auditors are different from usual auditors. The normal auditors analyse and give an opinion on the financial statement of the company, while the freight auditors focus mainly on the freight and logistics invoices. Just like an auditor give a clean chit to your business’s financial statement, a freight auditor also gives a clean chit for the freight invoices.
A clear freight audit report is a great tool for businesses handling a large number of freight and logistics bills. A properly produced audit report helps in improving trust between the suppliers, the carriers, and the company. It also improves the credit rating of the company.
Some popular freight audit services like the Global Freight Audit Services are dedicated to financial reviewing and analytical reporting as a sovereign, autonomous freight audit service provider. The company has over 100 years of experience in maximizing savings on logistics and freight expenses.
If you wish to take the freight audit services, don’t give a second thought to it. Just go for it!
