Freight Billing & Auditing

Freight Invoice Auditing

Freight invoice auditing describes the practice of having a third-party logistics company (3PL) review shipping contracts and invoices to ensure that the amount billed for in the end matches the original amount agreed upon in the beginning. In other words, freight invoice auditing safeguards your money by certifying that what you pay matches the negotiated rates that you agreed to pay and not a cent more. To do this the 3PL examines the contract and the validity of the freight carrier’s invoices to corroborate the accuracy of bills. Without proper freight invoice auditing companies risk overpaying and falling victim to the complex rate/freight pricing system of global shipping. 

What is Involved in a Freight Bill Audit?

During a freight audit, the 3PL will review and verify the information in all documents and contracts associated with a shipment of cargo. This can include but is not limited to:
  • Shipper information
  • Carrier information
  • Mileage (total and per leg if applicable)
  • Shipment weights
  • Tariff weight breaks
  • Bill of Lading
  • Tracking number
  • Discounts
  • Rate/freight pricing index
As the 3PL is examining the relevant documents and reviewing applicable information they are looking for:
  • Classification errors
  • Rate base and discount errors
  • Billing errors including duplicate payments and overcharges
  • Account coding that is in line with all client specifications 
  • Non-compliance (with actual and planned cost)
  • Shipments that were incorrectly classified
  • Mode specific expenditures
When the review is complete a final summation is written up for the client, with the option of also having the 3PL perform billing post audit. Audits can be general or focused on client explicit specifications such as mode specific audits (which would be particularly useful for businesses using multimodal transportation).

Benefits of Freight Auditing

For companies that prioritize their bottom line, freight invoice auditing is a necessary tool to maintain fiscal control over shipping costs. However, that is just one of the benefits of freight auditing by at 3PL.

Freight Bill Payment

Make your freight bill audit actionable through post-audit billing services and freight bill payment. Services for freight bill payment can be tailored to individual customer needs, but can include: 
  • Automated, efficient processing of freight bill payments
  • Concise customized client reporting of payments
  • Payment control per client specifications
Then, depending on the customer’s direction, the funds can distribute funds via ACH, wire transfer, or printed check.
C & S Transportation offers pre- and post-freight auditing services as a full-service 3PL. With a team of transportation experts and years of experience in freight auditing and billing, C & S Transportation can help businesses take control of shipping costs with confidence. C & S Transportation serves clients nationwide from their location near Nicholasville, KY. Contact them today to discuss your shipping needs. 
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