Freight bill audit and pay solutions provide the supply chain analytics and expertise to give shippers an edge. In the past, many companies outsourced their freight bill audit and payment. By moving this function in-house, companies gain more visibility and control into the extensive reporting capabilities available. The ability to see the whole picture can help you identify consolidation opportunities, cut unnecessary freight and trim costs by making smarter transportation decisions.
A freight audit is an integral part of managing supply chain costs and provides an analytical, financial review of invoiced costs versus supplier agreements. This may result in savings of four to seven percent. Companies that process a high volume of freight transportation bills / invoices without accurately auditing are overpaying a significant amount of money without knowing it.
Configurable rules can be set as to when an exception is generated and tolerances are established by the business user. FBAP allows for the approval of discrepancies and provides for the proactive resolution of exceptions.
Upon receipt of invoices, FBAP will validate and audit each invoice to make sure that they have not been previously processed and are billed to an appropriate account number that is eligible for payment. This helps your enterprise ensure that invoices are billed correctly.
The accurate auditing of freight bills means shippers benefit from uncovering unauthorized charges. For example, additional handling charges or unanticipated charges such as Saturday Delivery, Residential Delivery or Extended/Remote Area surcharges. Capturing these unnecessary charges results in a larger savings for your company.
Every time a carrier has to correct a shipping address, you are charged a fee. FBAP helps capture address corrections, allowing you to correct and store new addresses in your address book and avoid these additional charges in the future.
At the time of payment approval of the invoice, allocate the invoice costs to appropriate A/P accounts. FBAP can leverage configurable system rules to determine the accounts to which the costs are to be allocated and the proportion of those costs, based on the cost types and other characteristics of the shipments within the invoice.
The data generated is often the only way organizations can gain a single, detailed view of their freight spending, resulting in complete visibility into their transportation operations. This allows companies to make intelligent decisions in the areas of supply chain planning, route optimization and carrier rate negotiation based on accurate data.
FBAP allows your company to maximize the return on logistics spend through financial review and analytical reporting. Payment auditing and reporting tools help ensure data integrity and improve your supply chain decisions.
FBAP automates the process of approving freight bills received from carriers and identifies discrepancies between anticipated carrier freight costs and the actual costs received within the carrier invoices. This helps your organization avoid overpayment, improve transportation performance, reduce errors and save significant labor costs.
