Everything You Want to Know about Freight Auditing
Freight auditing, as intimidating as it may seem, is an essential process within any business that deals with the shipment of goods to customers through carrier companies. The process allows your company to clarify its invoices and monitor transportation expenses.
While your business may not be completing its freight auditing entirely on its own, it is still important to have a basic understanding of the process. This knowledge will give you a deeper insight into how your company operates as a whole. To get you started, here are some essential points that will give you a better grasp of the auditing process.
Bill of Lading vs. Freight Bill
A bill of lading is an official contract that provides essential information about a shipment, including details such as its value and weight. This contract is used as evidence of a transaction occurring between the shipper and the carrier.
A freight bill—or an invoice—is a financial document that states any supplemental details or conditions of a transportation arrangement. It outlines the terms of the bill of lading and serves as its unofficial counterpart.
The bill of lading and the freight bill serve to clarify arrangements made between you (the shipper) and the carrier. These two documents are analyzed together to ensure charges are made correctly and the carrier you work with makes no mathematical errors.
Benefits of Freight Auditing
Freight auditing is performed to make sure your company’s goods are reaching your customer in a timely, cost-efficient way. Auditing freight bills will guarantee that all charges that your company makes are legitimate and fair for all parties involved. This process will help you maintain a good relationship with both your customers and the carriers that work for you. Additionally, freight auditing will allow you to see where your business needs to improve and how its transportation costs can be cut.
Freight Bill Audit and Pay (FBAP)
FBAP is an economical way to avoid individually processing each freight bill. This is ideal for companies of all sizes, but especially for ones that are responsible for hundreds of shipments every month. FBAP minimizes processing mistakes and will allow your company to catch patterns of incorrect charges.
Freight auditing does not have to be completed without outside assistance. In fact, a lot of companies turn to third-party companies like us. We, at Orca Intelligence, offer what you need to accurately keep track of your transportation expenses. We are dedicated to providing you with a stress-free auditing process that will reduce your business’s transportation costs.
Orca Intelligence provides freight audit software. This automated way of performing freight auditing is cheaper for your company in the long run, and it can be personalized to fit your company’s individual needs. Our software offers high-level analysis to determine how money is being handled and how expenses affect the overall cost of goods sold.