The ultimate guide to freight audit in 5 simple steps

1. What is freight audit? 

Freight Audit is the process of verifying and analysing freight bills in order to gain cost savings, improve logistical processes and optimise operations.  

Freight auditing is done by either manually reviewing freight bills, or through the use of advanced software, capable of analysing and tracking huge amounts of data to provide superior billing accuracy and logistical analysis. Advanced service providers in this field often combine human expertise with technological innovation for the best results.

2.  Freight audit technology 

Freight related processes are more complex than ever, with technology, rates, transportation modes and fluctuating resource prices (such as fuel) adding new layers to logistics. As a result, human error is a serious consideration, and managing freight auditing in-house or through simple services is proving increasingly ineffective.

The solution is to improve the technological methods of auditing, while providing logistics expertise. Leaders in the freight audit industry, such as Transporeon, use specialised software that can track a large amount of variables, rates and other data, offering unparalleled accuracy, and reducing the chance of overbilling, invoice mistakes and other errors. Consequently, companies seeking to optimise their logistics operations, will enjoy effective cost savings. 

3. What is a Freight Audit Provider (FAP)? 

In its simplest terms, a freight audit provider analyses, verifies and corrects inaccuracies in freight bills and invoices. While cost savings and protection from overbilling remain key functions, with the growing complexity of modern logistics and billing, this no longer covers the full spectrum of an FAP’s capabilities.

High-tech freight audit companies incorporate software, automation and expertly trained auditors to bring freight bill verification and cost savings to a new level. These IT-powered vendors offer process visibility, business intelligence, freight tendering, rate management, spot bidding, consulting and more. This accurate logistical data can be used for a multitude of purposes, to empower their client’s logistical operations and give them a competitive advantage.

4. What freight audit services are there? 

Freight audit has a wide range of services related to invoice verification, cost savings and many adjacent aspects of logistical operations. These services vary, based on transportation modes (ocean audit, road audit, air audit, rail audit, parcel audit, warehouse audit); technological level (electronic processing and e-billing, or manual audit); stage of involvement (pre-audit or post-audit solutions); or the methods used to conduct billing and invoice verification (such as control-billing, self-billing and other solutions). 

5. Why do you need freight audit? 

Within the increasingly complex world of global trade and manufacturing, it’s more important than ever to keep control of your costs and have a clear understanding of your processes in order to stay competitive. 

Many global giants outsource their freight audit needs, to not only take control of their expenses, but also predict potential problems, free up strategic experts and departments for maximum business output, and truly understand their logistical flow.