Is Having a Freight Audit Really Necessary?
“A freight audit is a relic from a time when computers didn’t exist.” “Our TMS finds all errors before invoices are paid.” “If the amount that I’m billed is around the estimate that I received, why should I look for overcharges?” These are just a few of the reasons that businesses and individuals give for not seeking out or allowing an audit of their freight invoices. Here are 3 reasons that freight audits are relevant in today’s ever-changing logistics landscape:
- The world of shipping and logistics is not getting less complicated. It is true that freight audits have been around for a long time. Our company has been doing them for over 50 years. But ask yourself some questions. Have my shipping costs decreased over the last 15 years? Has shipping become less complicated for my organization over that time? Do I feel confident that I am not spending more than I should on freight costs? If you are like most people, the answer to these questions is “no.” Having a freight audit provides peace of mind in a logistics world that becomes more and more complicated by the day.
- The implementation of a TMS does not prevent errors from occurring. Today’s TMS is an extremely valuable tool and is helpful in routing freight, preventing duplicate billing, managing data, and increasing customer service satisfaction. So why is a TMS not all that I need? TMS’ are not able to uncover complex issues within shipment rating and pricing that require the skill of an experienced freight auditor. A freight auditor who has been in the audit business for years is able to use audit tools and apply human logic to discover areas of money savings that a technology application will not find. Catching duplicates is wonderful, but that is not a complete freight audit and substantial savings could be left on the table without a proper freight audit.
- Shipping cost estimates are only a starting point. Have you ever received an estimate on an auto repair or house remodel? Do you check the bill when it comes to ensure that you have been charged correctly? Of course you do. The same goes for shipping freight. Estimates are wonderful tools to project future costs but when a bill comes, it should be checked for accuracy. Maybe conditions changed between the time that you received the estimate and the time that the freight was shipped. Maybe a new rate scale went into effect. Maybe the price of fuel decreased dramatically. Maybe there was an error in the estimate. All of these and more are possible in the shipping industry and that is why a freight audit is so vital to an organization.
About Auditech & Associates, Inc.
We are a family-owned business that has provided pre payment and post payment freight audits to organizations large and small for over 50 years. We take pride in our ability to provide substantial savings in your logistics spend and would love for you to take a look at our services to see how we can provide value to your organization.