Freight invoice & audit management is vital for shippers to ensure accurate financial transactions, optimize costs, and maintain a streamlined supply chain. By implementing best practices in this area, shippers can improve efficiency, reduce errors, and strengthen vendor relationships. In this blog post, we will outline a few freight invoice & audit tips and tricks that every business should know.
Negotiate and Standardize Accessorial Charges
To optimize cost management, it is essential to negotiate and standardize accessorial charges as much as possible. Understanding how carriers perceive shipments, particularly in the context of less-than-truckload (LTL) transportation, allows businesses to align their shipping practices accordingly. By reviewing the rules tariff, which outlines specific guidelines for LTL shipments, businesses can proactively prevent unexpected price changes and ensure cost predictability.
Fully Landed Costs
To obtain an accurate measure of product profitability and assess the impact on the balance sheet, it is crucial to include fully landed costs. Accounting for transportation costs in the P&L statement allows businesses to gain insights into the profitability of individual product lines. This information becomes particularly valuable when faced with scenarios such as inventory markdowns. Accurate cost allocation helps businesses avoid dipping into unnecessary areas and provides a clearer picture of the financial health of different product lines.
Leverage Technology for Visibility and Performance Measurement
Leveraging technology is critical for gaining visibility into invoice and carrier partner activities. Implementing robust technology solutions allows businesses to measure their performance and identify areas for improvement in their partnerships. When dealing with multiple carriers and encountering exceptions, utilizing technology provides the ability to analyze trends, identify patterns, and address issues promptly.
Invest in the Freight Audit and Invoice Process Upfront
Investing in the freight audit and invoice process upfront is a strategic move that pays dividends in the long run. Ensuring data accuracy is paramount for generating reliable financial reports. Establishing a dedicated invoice audit team that performs daily integrity audits guarantees consistent accuracy and
reduces the risk of errors or discrepancies. By investing in technology solutions that automate key aspects of the process, businesses can improve efficiency, reduce manual effort, and enhance data integrity.
The freight invoice and audit process poses many challenges for shippers, and it is crucial to strategically manage them to ensure effective financial planning and operations. Enlisting the help of a managed transportation provider like FreightPlus can alleviate many of the frustrations and resources required to effectively manage the end-to-end process. To learn more about FreightPlus’ fully Managed Transportation Solution and how it can benefit your business, contact us today.