As businesses expand their supply chains to reach new markets and customers, they often face complex logistical challenges that can increase costs and decrease efficiency. Freight audit for long-haul can be expensive and time-consuming, requiring careful planning and management to ensure that shipments arrive on time and within budget. A freight audit is a crucial tool for managing long-haul shipping costs. This process involves reviewing and verifying freight invoices to ensure they are accurate and comply with contractual agreements. 

In this blog post, we will explore the importance of freight audits for long-haul shipping, highlighting key statistics demonstrating this critical process's benefits. We will also examine some of the challenges businesses face when managing long-haul shipping and explain how freight audits can help address these challenges and improve overall supply chain efficiency. 

The High Cost of Long-haul Shipping

Long-haul shipping can be expensive, with costs increasing as distance and complexity increase. According to a report from the American Transportation Research Institute, the cost per mile for long-haul trucking increased by 6.5% between 2017 and 2018, driven by rising fuel costs, driver shortages, and increased demand for transportation services. 

In addition to direct transportation costs, long-haul shipping can increase indirect costs, such as inventory holding costs and lost sales due to stockouts or delays. These costs can add up quickly, reducing profitability and decreasing competitiveness for businesses that rely on long-haul shipping to reach their customers. 

The Importance of Freight Audit for Long-haul Shipping

A freight audit is a critical tool for managing the cost of long-haul shipping. By reviewing and verifying freight invoices, businesses can ensure they are paying the appropriate amount for transportation services and not being charged unauthorised fees or services. According to a study from the Institute of Supply Chain Management, a freight audit can save up to 5% of transportation costs, significantly boosting a company's bottom line. 

Freight audits can also help ensure compliance with contractual agreements and regulatory requirements, reducing the risk of fines or legal action. For example, the Federal Motor Carrier Safety Administration (FMCSA) requires carriers to retain service hours (HOS) and other driver-related information records. Failure to comply with these regulations can result in penalties of up to $11,000 per violation, making compliance a critical aspect of freight audit for long-haul. 

Challenges in Managing Long-haul Shipping

Managing long-haul shipping can be challenging, with many factors impacting delivery times, costs, and overall efficiency.  

These challenges include: 

Route planning: Planning the most efficient route for long-haul shipping can be complex, requiring consideration of factors such as traffic. 

Carrier selection: Choosing a suitable carrier for freight audit for long-haul shipping can be challenging, with many factors to consider, such as rates, service levels, and track record. 

Freight invoicing: Reviewing and verifying freight invoices can be time-consuming and require specialised knowledge of transportation regulations and contract terms. 

How Freight Audit Can Improve Long-haul Shipping

Freight audits can help address many of the challenges faced by businesses that rely on freight audit for long-haul. By providing a detailed review of freight invoices, companies can identify billing errors, duplicate charges, and unauthorised fees, ensuring they only pay for the services they have received. It can result in significant cost savings and improved cash flow, allowing businesses to invest in other areas of their operations. 

To improve supply chain visibility solutions, providing real-time data on the shipment status, location, and delivery times. It can help businesses to manage their inventory levels better, reducing the risk of stockouts or excess inventory. Real-time supply chain visibility can also improve customer service, allowing companies to provide accurate delivery estimates and proactively communicate with customers about delays or issues. 

Demand forecasting is another critical aspect of supply chain management, particularly for businesses relying on long-haul shipping to reach customers. By analysing historical sales data and market trends, companies can better predict future product demand, allowing them to plan their long-haul shipping needs more effectively.  

ETA Logistical Solutions, a leading provider of supply chain visibility solutions, offers a comprehensive freight audit service that can help businesses to improve their long-haul shipping operations. By leveraging advanced technology and specialised knowledge of transportation regulations, ETA can provide a detailed review of freight invoices, identifying errors, overcharges, and unauthorised fees.  

Bottom Line

Freight audit for long-haul can be a complex and expensive process, but with the right tools and strategies, businesses can manage costs, improve efficiency, and enhance customer satisfaction. A freight audit is a critical tool for managing the cost of long-haul shipping, providing a detailed review of freight invoices to ensure that businesses are only paying for the services they have received. By leveraging advanced technology and specialised knowledge of transportation regulations, companies can optimise their long-haul shipping operations and improve supply chain visibility. 

If you are looking for a reliable partner to help you develop customised software solutions for your long-haul shipping operations, look no further than Cozentus. Our team of experts has years of experience developing software solutions that streamline processes, reduce costs, and enhance supply chain visibility. Contact us today to learn more about how we can help you optimise your long-haul shipping operations with our innovative software solutions.