Choosing the Right Freight Audit Service Provider: Factors to Consider

Since most shipping businesses spend more than half of their overall logistics expenditures on transportation, outsourcing freight audit offers clear benefits. Only a worldwide freight audit provider will suffice if you are a global brand with global logistics. Yet, there are significant disparities in the working techniques and services offered by freight audit providers (FAP) throughout the globe. Some are concerned with cost reductions, but others provide various services and tools, such as business information. Actual savings may realise by providing those extra services. 

A prevalent misconception in the logistics industry is that freight auditing saves money by eliminating overbilling. Nevertheless, the exact reverse is true. A good freight audit guarantees enhanced freight visibility and actionable data, preventing overpayment via proper bills rather than merely dealing with exceptions. 

Did you know that? Freight auditing software has been more popular among organisations in recent years to automate the sometimes time-consuming and prone-to-mistake process of verifying freight invoices. The Freight Audit & Payments market predicts to develop at a CAGR of 13.72% by 2030, reaching USD 1905.20 Million. 

So, what precisely is a "good freight audit"? 

A solid connection with your FAP builds on research. To assist you in knowing what to look for when choosing the perfect partner – and avoid possible pitfalls - we have compiled a list of the top 7 factors to consider. You're very welcome! 

Factors to consider before selecting a Freight Audit service

When choosing a freight audit service, please keep the following 7 aspects in mind: they may help shippers feel less anxious and provide essential services. 

1. Expertise and Experience

Is the outsourcing partner well-versed in the specific needs of shippers and carriers? How long have they been serving customers with third-party logistics services? And what are some of their success stories with other well-known companies? Their answers to these questions will provide a lot of information. They should also be able and willing to provide references. 

2. Usability

When evaluating freight audit software, consider how quickly it can be connected to your current system and utilised by your team. The platform should preferably feature a single dashboard with easily navigable menus. You must be able to accept proper bills with a single click, reject duplicate invoices automatically, and inform your vendor of any differences. It is also critical to enquire about data storage length since certain service providers may destroy data after a certain period. 

3. Turnaround

Times when encountering difficulties or needing support with the programme, quick response times are critical in third-party logistics. A delay in any stage of the freight auditing and payment procedures affects the package receiver. 

4. Accountability

It is essential to keep lines of communication open with your outsourcing partner. You may learn a lot about the service provider's openness level from the above-mentioned factors. You should also have faith in their ability to update you on the micro and macro levels of your job's progress. 

5. Verify that they employ cutting-edge technologies

While looking for a freight audit business, ensure they use advanced technology and solutions. It will increase efficiency and monitor shipments for security, safety, and quality assurance. A genuine organisation will be able to communicate and gather data more effectively. Hence, please select the one that best meets your needs and is dedicated to improving future technologies as we go ahead. 

6. Capabilities that can scale to fit

Ensuring that a company's services can scale to meet yours is critical. Vendors that execute their jobs properly often enhance the amount of money and the shipping process and contribute to improving client relationships by delivering excellent services. Payment providers must consider boosting their invoicing capacity when the shipping process increases. 

7. Automation and physical labour, with human supervision

Before increasing services, determine if the firm offers manual, automated, or human control. The firm must consider both regions. Yet, manual labour is unsustainable since it entails working long hours and providing in-hand services. The audit will analyse by the expert, who has years of industry knowledge, using approved software. 

Bottom Line

The approved, cost-effective service provider will assist you in meeting your objectives by selecting the appropriate process, software, and solutions. Having hands-on experience with the proper technology is vital while delivering auditing services. The firm should also describe the procedures, including thorough data analysis and cost-cutting measures.  

Employing a freight audit solutions company like Cozentus, may make things easier and more controllable for you. This way, you may concentrate on what works best for your organisation, values that can be helpful to improve services, and much more. But, before selecting a firm, examine the elements given above and determine whether they qualify for it to avoid additional complications!