The Impact of Freight Audit on Carrier Relations

Managing freight can be an overwhelming task for businesses of all sizes. Many variables can impact a company's bottom line, from transportation costs to delivery times. One area that often goes overlooked is freight audit and payment. By outsourcing these functions to a third-party provider, businesses can improve their carrier relations and save money. 

Understanding Freight Audit on Carrier Relations

For example, a business purchases raw materials from another state's suppliers. The supplier arranges transportation of the materials via a carrier and invoices the business for the transportation costs. The business processes the invoice and pays the carrier directly. However, without proper auditing, there may be errors or overcharges on the invoice, which could result in the business paying more than necessary. It can increase the business's costs and strain its relationship with the carrier. 

By outsourcing the freight audit and payment process to a third-party provider, such as Cozentus, the business can ensure that its freight bills are accurately audited and that any errors or overcharges are identified and disputed. It helps the business save costs and builds a positive relationship with the carrier, leading to long-term success. 

What is Freight Audit and Payment?

Freight audit and payment is the process of verifying and paying freight bills. It includes auditing each invoice to ensure accuracy and match the agreed-upon rates and terms. Freight audits and payments also identify and dispute errors, overcharges, or duplicate charges. The ultimate goal is to ensure that businesses pay only for the services they receive and at the agreed-upon rate. 

Freight Audit Services

Freight audit services typically include invoice processing, rate management, carrier compliance, and reporting. Invoice processing involves the receipt and processing of freight bills from carriers. Rate management involves negotiating and maintaining carrier rates and correctly applying the agreed-upon rates. Carrier compliance ensures that carriers comply with the terms of their contracts, such as delivery times and service levels. Reporting involves providing businesses with visibility into their freight spend and identifying areas for improvement. 

The Benefits of Freight Audit and Payment

There are many benefits to outsourcing freight audits and payment to a third-party provider. One of the most significant benefits is the ability to improve carrier relations. Businesses can build trust and establish a positive relationship with their carriers by ensuring that carriers are paid accurately and on time. It can lead to improved service levels, better rates, and faster delivery times. 

Another benefit of freight audit and payment is cost savings. Businesses can save on freight spending by identifying and disputing overcharges and errors. According to a study by the Aberdeen Group, companies that outsource their freight audit and payment functions can save up to 5% on their annual transportation spend. 

Freight Audit Service Providers

There are many freight audit service providers, each with strengths and weaknesses. When selecting a freight audit provider, it is essential to consider factors such as experience, reputation, technology, and customer service. Apart from Cozentus, some of the best freight audit companies include Cass Information Systems and Green Mountain Technology. 

Cozentus is a leading freight audit and payment service provider. We offer a comprehensive service suite, including invoice processing, rate management, and carrier compliance. Cozentus also has a strong reputation for customer service, with a dedicated team of experts available to answer any questions or concerns. 

The Future of Freight Audit and Payment

As businesses continue looking for ways to streamline their operations and reduce costs, the freight audit and payment services demand will likely increase. According to a report by MarketsandMarkets, the global freight audit and payment market is expected to grow from $1.1 billion in 2018 to $1.7 billion by 2023. 

One trend likely to shape the future of freight audit and payment is the use of advanced technologies, such as artificial intelligence and machine learning. These technologies can automate many manual freight audit and payment processes, reducing errors and improving efficiency. 

Bottom Line

Freight audits and payments are critical for businesses that rely on transportation to move their goods. Outsourcing this function to a third-party provider allows businesses to improve their carrier relations, save money, and streamline their operations. When selecting a freight audit provider, it is important to consider factors such as experience, reputation, technology, and customer service. Cozentus is a leading freight audit and payment service solutions provider with a strong reputation for customer service and a comprehensive suite of services. For more information, get in touch with us.