A freight audit & payment service usually consists of one or more levels of combined services. They may include examining, adjusting, and verifying freight bills, information reporting for logistics, and work with a combination of both Electronic Data Interchange, and paper freight bills.
A freight audit & payment provider should have the capability of verifying the origin and destination in a variety of ways, including bill of lading matching, and obtaining a signed proof of delivery. As a result, accuracy and efficiency of a freight invoice processing should be assured, because these services audit for freight rate, freight discount, misapplied accessorial charge, and prevent possible duplication of payment.
Why should I outsource freight audit service?
The Complexity of Freight Audit
With high fluctuations of fuel costs, low visibility of the future freight costs and high complexity of the freight quotes, freight cost verification are vulnerable to human and process errors and this requires proper auditing to ensure that the organization does not overpay for services it did not incur.
The High Volume of Freight Bills
The carrier freight rates are usually maintained in multiple spreadsheets and usually each carrier has a different freight rate format to the customer. An organization is daunted with the task of calculating the freight rates manually and this task can be challenging when they spent millions of dollars on freight annually.
The High Cost of Freight Audit Processing
Freight payable cost components include direct labor costs, indirect labor costs, equipment costs, postage / supply costs and administrative costs. According to inboundlogistics.com, freight costs can make up 10% of an organization’s expenditure. In addition, it is proven that customers can expect on average 2.8% of annual transportation spend in audit savings. By outsourcing the highly labor intensive freight audit service, the company can save at least 3%-5% of total freight costs.
Most organizations do not have the manpower to calculate all the freight invoices issued to them and at best, they perform random sampling to check if the sample invoice is billed correctly. Some organizations have the manpower to perform freight audit themselves, the manual and tedious efforts required for a freight audit will usually end up much more expensive than an outsource vendor might be able to provide.
What are benefits of outsourcing Freight Audit & Payment?
Cost of processing freight invoices is reduced to pennies vs. dollars.
Improved Carrier relationships. Quick & Accurate payments.
Rate & Service validation savings from 3% to 5%.
Cost avoidance opportunities typically 5%.
More time to spend on core competencies.
Leveraging the intellectual capital and technology.
Business Intelligence: Information to enable opportunities for improvement
What's the difference between freight pre-audit and freight post-audit service?
The pre audit take place prior to payment, while the post audit happens after the payments.
Pre audit was transformed from post audit, but has more combined values. Post audit arose in 1980 with Deregulation of the transportation industry. They would work on a contingency basis whereby they would collect 40-60% of all overcharges recovered by their auditing the last three (3) years of bills.
Then this post audit transformed into a pre-audit where the shipper paid a provider a flat fee per bill for checking the bills for overcharges prior to payment. This pre-audit service became a core value-add process upon which the freight payment process was built.
Today, the pre-audit process has become much more robust and widely used with several value added services. This includes: a verification of freight rates for compliance with the customer's contracts, checks for previous payment, checks for shipper’s liability and other edits and validations to insure the bills meet the shipper’s requirements for payment.
Intune Logistics Services
Why should I choose Intune Logistics?
Intune Logistics has a technology oriented approach that allows client to benefit from the flexible foundation, easy-to-use portal, reliable reporting and high-quality audit services.
Rich experience in small package audit & recovery, information technology, logistics enable Intune Logistics to provide industry leading best practice freight audit & payment services while yield saving in time and money for clients.
Trustworthiness and Reliability are Intune Logistics core values. Although Intune Logistics is a small growing company, we have gained clients satisfaction and favor for years' running.
What Services do you provide?
Intune Logistics provides flexible, high quality freight invoice audit and payment services utilizing the latest technology and industry proven best practices. Our leading edge services yield savings in time and money for our clients. Main services provided by Intune Logistics including:
Intune Logistics does offer the option to pay carriers on your behalf, while you can also choose to pay carriers by yourself. Here is a chart to compare two options:
Intune Pays Carriers:
• Client Funds Intune weekly for payments due
• Private accounts and visibility
• Intune issues ACH & checks payments
• Insurance protection
• Requires no AP/IT resources
• Monthly payment processing fee
Client Pays Carriers:
• Intune provides client with a custom AP file weekly for posting in ERP system
• Client provides Intune with remittance file for posting to portals
• Client issues payments
• Requires AP/IT resources for initial setup
• No Monthly payment processing fee
Are there any successful cases?
Yes, we have built trusted partnerships with many clients. Satisfaction levels are very high for our freight audit & payment services. Time and money are known to be saved since they have worked with us. Check out the successful stories.
How do you keep competitive prices?
Freight audit services pricing usually consisted of three parts: setup fee, processing fee, and professional service fee. Intune Logistics manages to maintain the competitive setup and processing fees, while not charging clients for most additional professional service fees.
How did we manage to do this?
Our freight invoice processing is highly automated and completely streamlined.
With the sophisticated technology, we automated many processes that our competitors do manually.
We work very hard on each startup to fine tune the process so it as efficient as possible. We work closely with clients and carriers to reach our efficiency goals.
Our most experienced leaders and diligent employees.
Our leaders have 60 years combined experience in freight invoice processing in total. We are able to take the most effective way to run our business. Our diligent employees are making every effort to deliver the best service to our clients as well.
Client Satisfaction is our first priority.
As a small start-up facing with thousands of competitors, we choose to put client satisfaction as our priority. For example, Intune clients usually enjoy administrative reports and tools without paying any professional service fee.
Can I try it before I sign up?
Yes, you can try it before signing up. Intune Logistics will tailor a demonstration for your business by loading a sample set of your invoice and configuration data at no charge. Give us a try!
Do you provide training for your software?
Yes. Intune Logistics designed its freight audit and payment client portal to be easy-to-use and-understand. However, clients may require additional training on the web site tools and the expansive data set that is available to them to get the most out of our services. Intune Logistics are glad to assist you with any support you need at no charge.Contact us now.