Freight Audit
The process of reviewing and verifying freight invoices against rate agreements, bills of lading, and actual shipment data to identify billing errors, duplicate charges, and overcharges. Freight audits can be performed manually, through TMS software, or by specialized third-party audit firms. Studies show that 3-7% of freight invoices contain errors, making freight audit a significant cost-saving practice for shippers with substantial transportation spend.
Detailed Explanation
The process of reviewing and verifying freight invoices against rate agreements, bills of lading, and actual shipment data to identify billing errors, duplicate charges, and overcharges. Freight audits can be performed manually, through TMS software, or by specialized third-party audit firms. Studies show that 3-7% of freight invoices contain errors, making freight audit a significant cost-saving practice for shippers with substantial transportation spend.
Example
A freight audit of a shipper's monthly invoices reveals $14,000 in overcharges: $6,000 in incorrect accessorial fees, $5,000 in weight discrepancies, and $3,000 in duplicate billings. The audit firm recovers the overcharges from the carriers.
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