WHY AUDIT FREIGHT
1. Your Fiduciary Responsibility
It's a known fact that a publicly held company is required by the SEC to
have outside audits performed not only on the cash trail, but in work
processes as well.
However, when a professional auditor walks in the door, their first priority is
to perform audits on the more critical areas such as accounting practices
and systems. Typically, transportation is not the auditor's field of expertise
2. You May Be Giving Up Bottom-Line Profits
When cash is recovered in a freight audit, it all falls to the bottom line as
profit to the company. How much cash are we talking about?
Experts in the marketplace state that carriers typically over bill about 6%
of what they should due to rate or payment errors, or duplicate payments.
3. Is Someone Available to Review Each Contract and
Recommend Better Contract Practices for the Future?
In a solid post-audit by a professional freight bill auditor who understands
contract languages, suggestions will be made that can result in significant
contract improvements for the future - and significant savings.
4. A Professional Review of Your Freight Service
Could Mean Better Practices for Your Company
Your staff has many day-to-day responsibilities and different experience
levels. With the reality of smaller staffs, it is impossible to be an expert in
all aspects of rules, rates and charges of the carriers providing
transportation services to your company.
A professional audit can frequently spot shipping practices on the part of
your carriers that are costing you money that you will never recover.
5. You will be able to Evaluate Your
Carriers for Quality - and Honesty
Upon the conclusion of an audit, you will receive management reports highlighting such points as:
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a.
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Which of your carriers are more prone to overcharge or retain duplicate
payments made in error?
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b.
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How long it takes to recover the overcharges?
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c.
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How much actual cash is lost to that carrier in terms of interest on the
money eventually recovered?
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6. What Added Value Will Your Company Gain From A
Professional Freight Audit?
A review of the entire transportation process can be invaluable to your
company's profit. Some of the added services available are:
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a.
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Procurement Process (audit of who does the actual transportation purchasing, how it's done, and how they compare to "best practice" procurement)
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b.
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Contract Review (review of all contracts for costly mistakes in their
construction and language)
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c.
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Payment and Audit Process
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d.
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Outside Audit Process
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e.
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Internal reconciliation/control of recovered cash
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