Freight audit and payment is the process of verifying and settling freight invoices. This involves checking the accuracy of freight bills, ensuring that charges align with agreed-upon rates and services, and confirming that all necessary documentation is correct and complete.
Essential Steps In Freight Audit & Payment
- The process begins with the receipt of freight invoices from carriers.
- Each invoice is checked for accuracy, verifying details such as shipment weight, dimensions, route, and service levels against the shipping contract.
- Any discrepancies found are investigated and resolved, which may involve communicating with carriers or other stakeholders.
- Once validated, the invoices are approved for payment.
- The final step is the payment to the carrier, which can be done through various payment methods.
Benefits Of Freight Audit & Payment
- Cost Savings: Businesses can save money by catching billing errors and overcharges.
- Improved Accuracy: Makes sure that only correct amounts are paid, reducing the risk of financial discrepancies.
- Efficiency: Streamlines the payment process, reducing administrative workload.
- Data Insights: Provides valuable data for logistics and supply chain analysis, helping to optimise future shipments and negotiate better rates.