According to research by Texas A&M, 80% of shippers usually overpay for their freight. This can significantly hurt their bottom line considering over 50% of their expenditures go into transportation. For this reason, many shippers are adopting innovative strategies for auditing their freight payments, including using freight invoice auditing software.
In recent years, there has been a significant surge in companies opting for freight auditing software to eliminate error-prone, laborious manual freight invoice verification processes and make their invoice processing error-free. In fact, the Freight Audit & Payments market is expected to grow at a CAGR of 13.72% to reach USD 1905.20 Million in 2030.
It is usual for shippers to outsource their bill payment and freight audit services to third parties who specialize in these product offerings since most shippers spend approximately half of their logistical expenses on transportation.
4 Points to keep in mind before choosing a Freight Audit service
There are a few key points you should keep in mind when selecting a freight audit service, for they can help shippers feel less stressed and offer valuable services.
A crucial characteristic to look at while assessing freight audit software is how easily it can be integrated into your existing system and used by your team. The platform should ideally have a single dashboard with menus that are easy to navigate. You must be able to approve correct invoices with just one click, auto-reject duplicate invoices and auto-notify your vendor of any discrepancies. It is also essential to ask about the duration of data storage, as some service providers may delete data after a particular amount of time has passed.
2. Knowledge and Experience
Does the outsourcing partner have a thorough understanding of the distinctive requirements of shippers and carriers? How long have they been providing third-party logistics services to clients? And what are some of their success stories with other notable businesses? Their responses to these queries will provide a lot of light. They should also be able and willing to offer references you can contact.
|With the help of GoComet, a leading global pharmaceutical company with 14 manufacturing facilities and a commercial presence in over 80 countries, build efficiency in their invoice verification process. The company achieved an error-free and audit-ready freight invoice process and saved up to 65% time required in invoice processing.
GoComet’s Automated Invoice Reconciliation module helped them achieve this.
Read more about this success story here.
Having a transparent relationship with your outsourcing partner is crucial. As you enquire about the aforementioned details, you will learn a lot about the service provider’s general propensity to be open. Beyond this, you must have faith in their ability to give you information on the state of your work on both a micro and global scale.
4. Turnaround Times
Quick turnaround times are essential in third-party logistics when facing difficulty or needing assistance with the software. A delay in any step of the freight auditing and payment processes has an impact that trickles down to the package recipient.
In short, the freight invoice automation solution should be able to achieve these four things right away:
- An error-free invoice verification process
- Automated follow-ups and alerts to your vendors
- Quicker approvals and faster payment cycles
- Seamless freight audits
Suppose your competition is using cutting-edge technological Freight Audit. In that case, they will have the advantage of a larger resource pool, more effective logistical operations, and tighter control over their shipping, all of which are directly related to trading success and the capability of making accurate business decisions.
You can automate your entire freight invoice reconciliation process using GoComet’s exclusive freight invoice reconciliation and audit software, GoInvoice. This module helps you overcome all the limitations of a manual invoice reconciliation process, saves hundreds of hours, enables significant cost savings, and, most importantly, makes your freight auditing process entirely hassle-free.