Compiling the invoices and processing them from time-to-time is a complicated and challenging activity faced by logistic organizations. Also, the handling of these invoices or freight bills unprofessionally can lead to multiple errors, poor internal processes, and late payments. In such instances, to overcome the hazards, outsourcing the freight bill payment services is regarded to be a wise decision.

Generally, the freight bill processing includes aspects such as invoice receipt and verification, invoice auditing, carrier payments, and detailed reporting.

Let’s take a look at how the freight payment works?

Generally, the outsourcing companies implement the freight bill auditing process in various ways. But we are listing a common and frequently executed method over here. 

Invoice Receipt Handling – Often, the invoices received by the outsourcing companies are in a bulk quantity. It undergoes the typical methods such as manual invoice processing and sending it through an email whereas the electronic-based invoices are sent through EDI (electronic data interchange).

Validating the Invoices – Once the invoice is received, the logistic BPO companies will validate and audit every single invoice. They will ensure that the invoices/receipts aren’t processed previously and will guarantee to ease the documentation process. It also includes the validation of the bill of lading (BOL) against the internal data set of the shippers.

Data Capture – Capturing the crucial data from the invoices such as the type, receipt number, date, amount, etc. is a vital stage. The data is collected, stored in a specific format, and contributes to the creation of a reporting database. The suppliers utilize these data to analyze and manage the supply chain process. 

Quality Check – At times, the manual logistic data entry and freight payment processing include various errors such as incorrect billing (sometimes, the errors might also occur by the carriers) or missing data. But the outsourcing companies have a quality check team that is well-proficient in managing and resolving these errors.

Customized Reports – The logistic BPO companies will create customized and periodic reports with the integration of details such as accurate information, etc. These comprehensive freight bill audit reports will help you to formulate a wise decision-making process.

Now, coming to the next session, why should you outsource the freight payment process?

1. Outsourcing the freight payment process is a cost-effective solution. It will eliminate the need to spend on receipt of invoices, validation, auditing, allocating resources, reporting, customer services, and so on.
2. With a professional team of assistants at the outsourcing company, you can enhance the efficiency in the invoice/freight payment processing.
3. The logistic BPO outsourcing companies are proficient in offering meaningful business intelligence. 
4. The outsourcing firms have the ability to make the best use of valuable resources and sophisticated technologies and optimize business growth.
5. They have equipped the best data security measures to safeguard your freight bill data and information.

Wrapping Up

Outsourcing the logistic BPO services such as logistic data entry, freight processing, auditing, etc. isn’t an old trend. Choosing and collaborating with the right logistic BPO company can enhance your decision-making process and will help you to focus on the core activities.

NexGen Logistics BPO is the globally leading service provider of back-office and administration services including freight bill payment and auditing needs. Our well-specialized team has the potential to deal with all sorts of freight bill audit process as they have a proficiency in managing the documentation of all transportation modes (rail, ocean, air, and road). 

If you are struggling to meet the end-to-end freight bill auditing services, contact us at info@nexgenlogisticsbpo.com

Logistics business organizations can also know how much money they are paying to their truckers and about the corresponding returns on the same from freight bill audits. This will eliminate any concerns regarding overcharging from competitors has been overcharging you and how that have avoided price audits.

This is a difficult process for logistics business organizations especially small one and they wouldn’t have the slightest clues to know if they have been duped by truckers by exploiting their money. Although with such an audit there are many things logistics organizations can keep track of and tackle, with the right expertise.

A few of the issues are increased trucking/service fees charged by truckers to fill their pockets for their own profitability and more. So, in order to avoid hassles and issues global logistics organizations seek the help of (offshore) logistics BPO companies for their efficient support in various freight bill payment services.

Outsourced freight bill auditing is affordable and enable efficient logistics operations with capable tracking on everything so that businesses can revise or adjust strategies accordingly.

There might be delivery delays from the driver and that will require an inquiry as to why it is happening. This will help you determine the trucker’s efficiency and to know if they are on the right delivery routes.

By checking the truck or operator, steps can be taken to make sure the driver runs on the right route properly. If the delivery times are cut too short, it might be of the fact that they aren’t delivering goods at all. The check will help keep the delivery time exactly in sync with the originally scheduled time. And freight bill audit can help with this.

Sometimes drivers might be double dealing to fill their own pockets when they are not shipping freight. They might dupe the client by selling the merchandise at higher prices than they are supposed to. This is a very difficult one and if not kept in check will lead to huge problems.

This is where freight bill auditing becomes a savior as there are records of the drivers’ activities while he is running on the specified route. The equipment used by the drivers, its accuracy, and more can be done with this audit. Driver can also be held accountable if their equipment is faulty or gets broken en route for which they will be solely responsible and for the repair costs.

Sometimes logistics firms won’t realize the way they are shipping their freight in this manner until the payment is paid and when the customer gets delivery of their goods. So it is important to be aware of the same and needs to be proficiently resolved. And checking the truck driver will help you determine if they are only helping themselves or if they are duping clienteles by charging more service fees.

The short delivery times are also an issue as they will be driving more miles without shipping the freight at all. They will be driving all over the city to charge more service fees from clients, since it will be viewed as additional work which is not good for clients. So the audit done or is the client choose to outsource freight bill payment services from efficient logistics BPO companies.

Even issues such as truckers not accepting a change order to help improve their performance or not abiding by the client’s instructions are also there. Overloading of freights or the need for customers to be transported to a different area for pickup, etc. means the driver is not at all following the client’s instructions when they are asked to carry out something differently. This will affect the customer experience and satisfaction levs as well.

So logistics companies always ensure to conduct freight bill audit so that they can save their money or tone down costs fairly with truckers. This helps them from paying increased costs to truckers when compared to their competitors. For even more cost reduction and efficiency, they can outsource freight bill payment services to logistics BPO companies as well.

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.

Freight payment processing is regarded to be one of the most challenging and time-consuming tasks when it comes to logistics BPO services. Every logistic business faces the hurdle of dealing with countless freight invoices daily. Right from pre-audit processing to post-audit processing, the execution of freight payment processing involves the efforts of experienced professionals. If handled inefficiently, it can hinder the smoother functioning of your logistic business, thereby, bringing lower efficiency.

Because of such inconsistent challenges, a majority of the logistics business tend to outsource the freight payment processing by hiring a renowned logistics BPO company. The outsourcing companies possess the efficiency to work on the exact figures with accuracy and relevancy.

Being into the logistics business, if you fail to keep up with the billing standards, it can have an adverse impact on your business revenue and will also tamper your relationship with the clients. The prime motive behind outsourcing freight payment processing is to optimize and control the cash flow in your logistics business.

Here’s a look at the prime reasons for outsourcing the freight payment processing services!

Reducing Labor Costs

To enhance the productivity and efficiency in handling the freight bill processing, a majority of the logistic organizations tend to hire exceptionally qualified employees at a high cost. But through the means of outsourcing, the logistic firms can easily reduce the labor cost and simultaneously get access to the desired output.

Instant Processing

Hiring a logistic BPO company is an economical way to speed up the freight bill audit and freight bill processing stages. The outsourcing companies are well-equipped with advanced technologies and updated processing tools, thereby, boosting up the freight bill processing service. Also, the logistic BPO companies employ a team of skilled personnel to handle your project without any delay.

Accuracy Matters

The logistic management service should be handled with the utmost care, giving a higher prominence to the execution of freight bill processing. The freight invoices carry crucial data that is highly important for your logistic business to manage the operations. Even the slightest error in the handling of freight invoices can cost a lot to your business, especially in the long run. Hiring a logistic BPO company will render you with the accurate, consistent, and reliable result as they also have a unique circle of quality check operators. They will ensure that the freight bill processing is implemented without any hassles or irrelevancies.

To Conclude

Outsourcing companies have become an inseparable aspect of every logistic business for assuring a successful long run. NexGen Logistics BPO has turned out to be a globally acclaimed service provider of logistics documentation and logistics management services. The credible crew at NexGen ensures to offer transparent back-office solutions including freight bill processing at a competitive price.

To inquire further regarding our benefits, feel free to contact us at info@nexgenlogisticsbpo.com

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.

What does the term ‘Freight Audit’ imply?

A freight bill audit is a process of examining the accounting, wherein, a firm verifies the freight invoice against the organisation ledger. A freight bill is also preferably known as ‘freight invoice’ and has a huge role to play in the logistics vertical.

The auditing process encloses the adjustments and verification to accomplish complete perfection and accuracy.

An invoice freight audit bill includes the following segments:

• Your name and address

• Invoice number for reference

• Pro number

• BOL (bill of lading) number

• Shipment date

• Cost of the shipment

• The overall cost of the shipment

• Type of the freight used

• Information regarding the shipper and consignee

• Details associated with the quantity and weight of the shipment

Because of the bulk incoming of freight bills in a logistic sector, it is said that one out of every five bills consists of multiple errors. Most of the times, the errors in these invoice freight audits go unnoticed or unattended. This can have an adverse effect on the functioning of a logistic business. The manual freight  processing involves greater time and challenges. And to limit these issues, outsourcing has become an effective trend.

To thrive the competition of the logistic business, a majority of the shipping companies consider three methods for an extensive freight – third-party logistics, manual review, and implementing invoice audit freight system.

Freight bill audit is a significant element of every logistic business and it is essential to detect the errors that might have occurred during the accounting process.

The most commonly occurred invoice freight audit errors include:

• Inaccuracies in shipping
• Delays in shipment
• Increase in accessorial charges

The successfully implemented freight audit process can bring more profitability for your business with the careful elimination of the data errors. This further reduces the involvement of unwanted labor costs.

Generally, a freight bill is placed under ‘pre-audit’ because the bill is audited before the payment initiative takes place. Poor quality in audit is directly linked to the ground roots of your logistic business, and therefore, even a small inaccuracy can lead to multiple hassles in your logistic business functioning. Most of the logistic startups or emerging firms are generally unaware of such complexities (the bulk of different charges, accessorial charges, rate indexes, and much more) which can cause inconsistencies in the billing process.

In-house or outsourcing?

Well, because of the lack of experienced professionals, logistics firms face drastic challenges in handling the invoice freight audit process. And hence, this competitive global business scenario calls for the execution of the outsourcing process.

Outsourcing the invoice freight audit process will endow you with the following benefits:

• Inputting the significant data into the system for enhancing instant analysis

• Verifying the audit bill and checking out for errors and inaccuracies

• Making the best use of  audit software for generating precise results

• Helping your business to formulate strategic decisions

• Experiencing the consistent and in-depth auditing process

If you are into a logistic sector and if you haven’t yet approached the concept of outsourcing the invoice audit, this is the right time to take the beneficial initiative. NexGen Logistic BPO has acclaimed the name of being the best global offshore service provider of freight audit processing services. For further details, you can reach out to our team at info@nexgenlogisticsbpo.com