Freight Audit for Food and Beverage Industry: Managing Temperature-Controlled Shipments

The food and beverage industry relies heavily on freight transportation to move products from one location to another. However, the stakes are much higher when it comes to temperature-controlled shipments. Any deviation from the desired temperature range can have catastrophic consequences, such as spoilage, contamination, or recalls. That is why freight audit services have become increasingly popular in recent years, especially among companies that deal with perishable goods. This article will explore how freight audit and payment companies can help the food and beverage industry manage temperature-controlled shipments more effectively. 

Why is Freight Audit Important for the Food and Beverage Industry?

Freight audit is essential for the food and beverage industry, which relies heavily on temperature-controlled shipments. These shipments require specialised equipment, such as refrigerated trucks, containers, and warehouses, to maintain the desired temperature range throughout the supply chain. Any deviation from this range can compromise the products' quality, safety, and shelf life, leading to significant financial losses and reputational damage. 

According to a report by the Food and Agriculture Organisation of the United Nations (FAO), global food losses and waste amount to about 1.3 billion metric tons per year, roughly one-third of the total food produced for human consumption. The report also estimates that the annual economic value of these losses is around $940 billion. One of the main drivers of these losses is inadequate or improper handling of temperature-sensitive products during transportation. 

Benefits of Freight Audit for the Food and Beverage Industry

The food and beverage industry faces numerous challenges regarding freight transportation, especially with temperature-controlled shipments. Freight audit services can provide several benefits to help address these challenges and streamline transportation processes. Here are some of the key benefits of freight audit for the food and beverage industry: 

Cost Savings

Freight audit companies can help food and beverage companies save money by identifying and recovering overcharges, duplicate charges, and other billing errors that shippers may notice. According to industry estimates, billing errors account for up to 5% of transportation costs, which can add to significant amounts over time. By freight bill auditing and reconciling with contracted rates and service levels, freight audit companies can help shippers recover these overcharges and avoid future errors. 

In addition to recovering overcharges, freight audit companies can negotiate better rates and terms with carriers based on data-driven insights and market intelligence. They can leverage their industry expertise and relationships with carriers to secure competitive pricing and favourable contract terms that align with the specific needs of food and beverage shippers. It can result in significant cost savings and improved profitability for these companies. 

Process Automation

Freight audit companies can also automate manual and time-consuming processes in managing freight transportation, such as data entry, invoice processing, and payment reconciliation. It can help food and beverage companies streamline operations, reduce errors, and free up resources to focus on more strategic activities. By leveraging advanced technology solutions, such as Artificial Intelligence (AI), Machine Learning, and Predictive Analytics, freight audit companies can provide real-time visibility and control over transportation activities, enabling shippers to make informed decisions and optimise their supply chain performance. 

Compliance and Risk Management

Freight audit companies can also help food and beverage companies ensure compliance with various regulations and standards related to food safety, quality, and labelling. They can monitor carrier performance against established service level agreements (SLAs) and track key performance indicators (KPIs) to identify potential risks and issues before they escalate. They can also provide insights and recommendations to help shippers improve compliance and risk management practices and mitigate potential liabilities. 

Improved Visibility and Analytics

Freight audit companies can provide food and beverage companies with enhanced visibility and analytics capabilities that can help them optimise their transportation processes and improve their overall supply chain performance. They can provide real-time tracking and monitoring of shipments and access to detailed analytics and reporting on transportation spend, carrier performance, and other key metrics. It can help shippers identify trends, patterns, and opportunities for improvement and make data-driven decisions to optimise their operations.

Bottom Line

Freight audit services can significantly benefit the food and beverage industry by helping shippers save costs, streamline processes, ensure compliance, and improve visibility and analytics. By partnering with a reputable freight audit and payment company, food and beverage companies can leverage advanced technology solutions and industry expertise to optimise their transportation operations and improve their overall supply chain performance.

If you are a food and beverage company looking for a reliable freight audit and payment company, consider Cozentus. Our freight audit solutions can help you optimise transportation processes and save costs. Contact us today to learn more.