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.

What do you understand by a ‘freight bill’?

A freight bill is an essential component of a logistic organization. The bill comprises of shipment details and vital terms/conditions, associated with the auditing and consignment. It is mandatory to examine and validate the bill details for gaining complete accuracy.

If you are still dealing with the risks of handling freight bill processing in-house, it’s time to think out-of-the-box and approach the concept of ‘outsourcing’.

Generally, performing the freight bill audit in-house can hinder the smoother business functioning as it might lead to the occurrence of numerous errors, thereby, resulting in a disastrous financial loss. To prevent such hindrances, you should be careful about organizing the freight bill data effectively. And in such a circumstance, hiring a professional freight audit and payment provider can ease your challenges.

Let’s look at the need to outsource the freight bill processing service!

Automated Process :

 Digitizing the freight bills are carried out to automate the process. Outsourcing the freight bill processing service can help you to accomplish guaranteed results with an approximate accuracy rate of 99.99%. The professionals will help you to check and verify the freight bill details to eliminate the presence of errors. Saving a considerable amount on freight bill processing can maximize the profitability of your organization.

Valuable Resources :

Most of the time, logistic businesses do not possess the right amount of resources for executing the freight bill audit and processing in a professional way. Lack of an auditing segment in-house can cause multiple challenges. But, outsourcing the freight bill processing will open the opportunities to explore professional manpower and valuable resources. They use the right resources including state-of-the-art infrastructure and sophisticated tools to get the best result.

Core Functioning :

Due to inexperienced professionals and expertise, most of the logistic business fail to focus on the core functions. Therefore, outsourcing the freight bill processing service will enable you to get the assistance of experts in a short time. This will help you to divert your attention and resources towards the major revenue-generating activities. Scanning and freight bill auditing is considered to be non-core business functions and the best assistance can be rendered by the outsourcing companies.

Database/Software :

Incorporating the advanced software and technologies to process freight bills can be of great advantage for the logistic business. Because of the lack of financial contributions, most of the logistic business fail to integrate sophisticated technologies and software. But, the logistics outsourcing company has the right set of databases and software that will help you to yield the client-satisfied result. Also, the latest software will implement an accurate billing result.

Precisely, outsourcing the logistics BPO services will leave no space for any kind of errors. The involvement of experienced assistants and the mix of contemporary technologies will generate the best result that would meet the industrial standards.

NexGen Logistics BPO is the leading and the globally best offshore logistics BPO company, attending to the on-time requirements of our client with consistency.

If you haven’t yet collaborated with an outsourcing partner, this is the right time to take a step ahead.