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Freight Invoice Audit: Ensuring Accuracy and Cost Savings

Apr 25, 2023

Freight Audit & Pay Services

Are you tired of overpaying for freight invoices? Do you struggle with inaccurate billing and unexpected charges from carriers? It's time to partner with TLI, a leading 3PL logistics management company that offers freight invoice audit services.

In the transportation industry, freight invoices are one of the most critical documents for both the shipper and carrier. A freight invoice contains all the necessary information about the shipment, including the type of goods, origin, destination, weight, and other charges. It is a legal document that serves as proof of delivery and payment. Freight invoice audit is a crucial process that helps shippers ensure the accuracy of their invoices and avoid unnecessary expenses.

What is Freight Invoice Audit?

Freight invoice audit is a process of verifying the accuracy of freight invoices issued by carriers. It involves a thorough review of each invoice to ensure that all charges are accurate and in compliance with the agreed-upon terms and conditions. The audit can be performed manually, but most companies opt for an automated system that can quickly identify discrepancies and errors in the

invoice.

The Benefits of Freight Invoice Audit

Freight invoice audit offers several benefits to shippers, including:

1. Cost Savings:

By identifying errors and overcharges on freight invoices, shippers can save a significant amount of money on transportation costs.
2. Improved Efficiency:

With an automated audit system, shippers can quickly identify and resolve invoice discrepancies, improving their overall efficiency.
3. Better Carrier Management:

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What Needs to be Audited on the Freight Invoice?

The following items need to be audited on the freight invoice:

1. Basic Information:

Verify that the invoice contains accurate and complete information, including the shipment date, origin zip code, destination zip code, weight, NMFC Freight Class and other charges.
2. Accessorial Charges:

Ensure that all accessorial charges, such as fuel surcharges, detention charges, and others, are in compliance with the agreed-upon terms and conditions.
3. Tariff Rates:

Verify that the carrier has applied the correct tariff rates to the shipment. If a shipment is rated off the wrong pricing structure the charges will be incorrect.

Having an automated rating engine integrated directly into the TMS system can ensure the contract rate is saved down at the time of booking so the freight invoice can be automatically compared against the rate saved in the system.

Partner with TLI for Freight Invoice Audit

TLI offers freight invoice audit services to shippers, providing an accurate and cost-effective way to manage their transportation costs. Our experienced team of auditors utilizes a state-of-the-art audit

system that can quickly identify discrepancies and errors in freight invoices, saving shippers time and money.

Partnering with TLI for freight invoice audit provides several benefits as has been highlighted earlier but access to expert auditors is chief among them. These expert freight invoice auditors will dispute reclass and reweigh mistakes that carriers make, and this results in having scrubbed data to drive data driven decision making.

What is a Reweigh?

A reweigh invoice dispute in the shipping industry occurs when a shipper disagrees with the weight of the freight that has been recorded on the carrier's invoice. In this case, the shipper believes that the weight of the freight is incorrect and disputes the weight with the carrier. The shipper may believe that the carrier has overcharged them for the freight, based on the weight recorded on the invoice.

To resolve a reweigh dispute, the shipper may request that the carrier reweigh the freight and provide a new invoice based on the actual weight. The shipper may also dispute the classification of the freight, which is another common invoice dispute in the shipping industry. In this case, the shipper disagrees with the classification code assigned to the freight by the carrier, which can impact the rate charged for the shipment.

Invoice disputes can be time-consuming and can impact the relationship between the shipper and the carrier. However, by working with a 3PL logistics management company that offers freight invoice audit services, such as TLI, shippers can have a team of audit experts on their side to help dispute reweigh and reclassification disputes with carriers, and ensure that their invoices are accurate and fair.
What is a Reclass?

Invoicing reclassification in the shipping industry refers to a dispute over the classification of a shipment. Carriers use a standardized classification system to determine the appropriate rate to charge for a shipment, based on factors such as the weight, size, and type of the freight being shipped. However, sometimes shippers may dispute the classification code assigned to their shipment by the carrier.

For example, a shipper may argue that their shipment was misclassified by the carrier, resulting in an overcharge on their invoice. In this case, the shipper may request a reclassification of the shipment and dispute the carrier's invoice. The shipper may believe that the freight was incorrectly classified, and that a lower rate should have been charged for the shipment based on the true classification code.

Invoicing reclassification disputes can be complex and time-consuming, and can impact the relationship between the shipper and the carrier. That's why it's important for shippers to work with a trusted 3PL logistics management company, such as TLI, that offers freight invoice audit services. By partnering with a team of audit experts, shippers can have their invoices reviewed and audited to ensure that they are accurate and fair, and any reclassification disputes can be resolved quickly and efficiently.
What is Cubic Capacity?

A cubic capacity dispute in the shipping industry occurs when a shipper disputes the volume or cubic capacity of the freight being shipped. This type of dispute can arise when the carrier's invoice is based on the volume of the freight rather than its weight.

For example, if a shipper believes that the carrier has overcharged them for the shipment based on the volume or cubic capacity of the freight, they may dispute the cubic capacity with the carrier. The shipper may argue that the carrier has overestimated the volume of the shipment, resulting in an overcharge on the invoice.

To resolve a cubic capacity dispute, the shipper may request that the carrier re-measure the dimensions of the freight and provide a new invoice based on the accurate volume. This can be a time-consuming process and may require additional documentation to support the shipper's claim.

By partnering with a 3PL logistics management company, such as TLI, shippers can have access to freight invoice audit services that can help prevent cubic capacity disputes from occurring. Through rigorous auditing and verification of invoices, TLI can ensure that shippers are only paying for the accurate volume or weight of their shipments, and any disputes can be resolved quickly and efficiently.

When you partner with TLI, you get access to a team of audit experts who will dispute reweigh and reclassifications of freight with carriers. This means that you can rest easy knowing that your invoices are accurate and you are not overpaying for freight services. Plus, you'll save money on your invoices, which can add up to significant savings over time.

But that's not all. By partnering with TLI, you'll also have access to clean and scrubbed data. This means that you can use great data to guide your business intelligence decisions. You'll have accurate and reliable data to help you make informed decisions about your supply chain, logistics, and overall business strategy.

At TLI, we understand that freight invoice auditing can be a time-consuming and complicated process. That's why we take care of it for you. Our audit experts have years of experience in the industry and are dedicated to ensuring that your invoices are accurate and that you are not overpaying for freight services.

In addition to our freight invoice audit services, we offer a wide range of logistics management solutions to help streamline your supply chain and reduce costs. We'll work with you to create a customized logistics plan that meets your unique business needs and goals.

Don't let inaccurate billing and unexpected charges from carriers eat into your profits. Partner with TLI and start saving money on your freight invoices today. Contact Translogistics to learn more about our freight invoice audit services and other logistics management solutions.

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TLI Insights

For the latest insights, tips and commentary surrounding the logistics industry, look no further. Shippers will find thoughts from the award-winning team at Translogistics covering everything related to your transportation processes and plans. If you have a question we are readily available at insidesales@tli.email