Freight Invoice Audit — Freight Audit
Inaccurate freight invoices are more than just an inconvenience. Significant money can be lost through carrier errors and overcharges. We recommend that strong validation routines are incorporated into your work flows. Structural errors can can occur over long periods of time and the larger the $$$ the more difficult the recovery process. Ideally, invoice inconsistencies should be identified and rectified prior to invoice payment.
At Factor Freight, our Freight Invoice Management (FIM) system is designed to streamline the validation process. You can see all issues at a transaction and consolidated level. The invoice data is consolidated to form a database to support great operational and financial reporting. Factor Freight has developed an array of interactive BI dashboards that highlight issues and opportunities.
Why is Invoice audit Important?
Our invoice audit process is designed to identify billing errors that regularly occur. The process encompasses a raft of processes that are not relating to pricing such as duplicate charging or bills for transactions that did not occur. We also match shipment weights and dimensions through a series of cross matching processes. These routines have been developed over a number of years and are more powerful that the humble spreadsheet with a rate look up table.
We also target internal errors such as incorrect service / carrier selection that are impossible to reclaim but have a huge impact on the budget.. We have encountered situations where hundreds of thousands of dollars of costs have been incurred by the incorrect selection of air instead of road freight.
The cost allocation process is also actioned during the validation process. For some organisations this can be more complicated than price auditing and very time consuming without the support of a specific software solution.
Whether your accounts are a mess, or you are looking to improve your existing processes, or reduce administration costs, Factor Freight has the industry experience and the technology to help.
A typical invoice validation cycle is as follows:
- Carriers send invoices via email
- System catalogues invoices
- Extract, transform and load (ETL) process
- Validate rates and quantities; allocate costs, identify non-conforming transactions
- Lodge client approval files for acceptance
- Send payment files into accounts system
- Upload reporting database and claims
- A cost-effective method to streamline difficult, tedious administration processes.
- Opportunities to identify non-conforming transactions prior to payment.
- An invoice upload format that is compatible with most accounts payable set-ups.
- Multiple duplicate routines to ensure that overpayments do not occur.
- A system where carriers are paid in accordance with agreed contracts.
- The tools to cost-code transactions accurately and consistently.
- An approval process that is both controlled and transparent.
- Multiple validation processes to ensure that charge weights and units are correct.
Freight Audit Starts with your Accounts
Seize control of your freight operations with our invoice validation systems. Call Factor Freight Solutions for more information.
Transport Management System Audit
Factor Freight has audited many transport management systems, and the results may astound you. We regularly identify 25% of transactions that were unable to be matched against agreed contract rates. There are rafts of reasons behind these transactions, however, in most situations the cost paid is higher than you would expect, and they often conceal issues the business needs to address.
Contract Management for Freight Operations
The Freight Invoice Management (FIM) software suite includes excellent administration support for all of your transport contacts. Simply catalogue digital copies of contracts, rate tables and similar documents for quick reference so that you can search by rate, route, service, account — whatever details you have on file. You can use contract management software to:
- Consolidate your physical contracts.
- View rates and other pertinent data.
- Design a master table for accurate logistic comparisons.
- Optimise freight audits, reviews and tenders.
The contract management feature is brilliant for storing historical information. Autonomous record handling beats rifling through filing cabinets or the email inbox. FIM provides the contract library for your convenience.
When carrier rates change across the business the system will update accordingly. We provide an orderly maintenance routine that uses rigorous authorisation protocols to ensure that the contracts are always current and correct.
The Freight Invoice Management (FIM) Software can log fuel and surcharge variances as well as fuel levy variations.
Freight Cost Solutions Made Easy
Talk to Factor Freight to see how you can better manage your contracts and transport data for that next freight audit.