Common Carrier Disputes and How to Solve Them
Carrier Hiccups
Most companies deal with commonplace challenges that occur like regular hiccups in the management of their product transportation. But recurring shipment issues—no matter how minor—can affect the overall success of your supply chain and the satisfaction level of your customers. Of all the seemingly small problems that might afflict a business, here are a few carrier disputes that appear frequently, yet have relatively easy fixes.
Freight Bill
The first issue businesses often run into is an incorrect invoice, or a surprising change in the classification or weight of a shipment. When a carrier reweighs or reclassifies a shipment, it can result in a big change reported in the bill. If a reweighed shipment is a density based commodity, a 3PL auditing team can calculate a shipment's density compared to its actual weight and confirm the corresponding class is applied. In most cases, more weight means higher density and a lower class. The correct class based on the density can then be presented to the carrier and the 3PL can handle the disputed invoice.
Accessorial Bills
Another common problem businesses deal with is the struggle around disputing high accessorial bills. Now more than ever, carriers are invoicing accessorials such as residential, liftgate and inside deliveries which can make auditing a frustrating and long process. The easiest way to tackle these charges is by employing a 3PL to verify that charges are accurately applied and all accessorials are from valid sources. A hands-on 3PL will also check to make sure that each accessorial service was confirmed with appropriate signatures at the point of delivery.
Payment Terms
When payment terms do not coincide with the agreed upon order terms, this can result in incorrect pricing from carriers as well. In order to resolve this common problem, all bills need to be explicitly stated as prepaid, collect, third party, third party prepaid or third party collect. Other wording throughout the bill, including language in the “bill to” portion, should be specific so that the carrier’s auditing team can attribute proper pricing using their internal system.
Freight Bill Audit
Is your audit team equipped to handle these common carrier disputes? If you’re searching for an easier way to manage carrier troubles and vendor relationships, you might benefit from the skill of a 3PL partner or the organization of a TMS.
Having trouble with carrier invoices not matching quotes? Learn how TLI can audit your freight!
TLI Insights
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