LIVING LOGISTICS BLOG

    Freight Billing Audit -  The key to detecting saving opportunities.

    Feb 14, 2020 12:15:00 AM / by Román Martinez

    Have you ever wondered how your company can create savings and find areas to implement continuous improvement projects?

    Continous improvement is essential for supply chain success and an audit process is one of the keys to achieving those goals. How, you ask? Freight bill auditors play a pivotal role in the data analysis which allows them to detect opportunities for routing improvements, shipment consolidations, modes of transport and cost optimization.

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    According to the 2016 Third-Party Logistics Study, 31 percent of companies surveyed use outside freight bill auditing and payment services. So, many companies could be missing out on the benefits of freight invoice auditing (Garry Oswald 2016, Corporate compliance insights)

    At GEODIS we strive to give you an outlook of what you may be missing if Freight Bill Auditing is not part of your strategic process.   Take a brief look at the main benefits your company can have with the work of the experts:

    • Cost avoidance and savings opportunities:

    Have you ever wondered if your suppliers are billing you properly? Are they duplicating the invoices of paid services? Do they bill for “ghost services”? How close do you control your transportation spend?  Do you know if there are gaps in your contracts that you can improve or renegotiate?

    Cost avoidance is the result of auditing your transportation supplier’s billing process in order to detect discrepancies on shipment weight, dimensions, service level and contractual charges required for the shipment. Auditing their process potentially saves money and improves the relationship with suppliers because of the accuracy of the billing operations as well as faster processing and post-audit support.

    Now that you have a lot of information about your transportation spend, how will you take advantage of the data?

    At GEODIS, we rely on data analysis tools such as Dashboards and key metrics. Exploring, analyzing and interpreting the information is vital for effective decision making.  Based on the data i.e. cost variations, route selection, cost trackers, tendencies and predictions; the companies can choose the best alternative to solve a problem or to create new proposals in terms of Supply Chain effectiveness.

    Freight Billing Audit, as a solution for your company, will produce essential information that will aid you in providing valuable information that allows you to achieve your transportation spend goals.

    Do not take for granted the amount of impact this will have on Customer Satisfaction. As a customer you will surely see that you are not overpaying for services and that you are receiving accurate information for decision making. You can trust the process and have a great audit experience.

    If Freight Billing Audit is not part of your solution, you are missing a great opportunity for generating savings, improving your processes and decision making around transportation management, negotiate better contracts and be a continuous improvement rockstar.

     

     

     

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    Topics: Center of Excellence, Control tower, Visibility, Customer Loyalty, Supply Chain Solutions, 4PL, Customer Satisfaction, Customer Experience, Customer Service, Supply Chain Optimization, Cost Savings

    Román Martinez

    Written by Román Martinez

    Román Martinez is a Freight Billing Audit lead, with a Master on Business Administration. He has worked at GEODIS for more than 3 years focusing on different projects related to Freight billing audit.