Isn’t this one of the age-old questions every business faces? What should you outsource, and what should you do yourself?
For once, it’s a pretty simple decision. The companies that choose to do freight invoice auditing in-house usually do so to monitor their own finances as tightly as possible. They don’t want to transfer money to an outside vendor to forward to the carrier. Some want to keep control of the coding and payment functions of the software.
However, doing it in-house is going to eat up a lot of IT’s time and resources. You’ll have to stumble through, creating an EDI system and automatic rating system. It takes a lot of time to update the complex and frequently changing carrier rates.
But, many companies choose to have an outsourced provider perform the service. Mostly, it’s because they have the instant expertise. The time to get up-to-speed isn’t nearly as long as it would be in-house. And you wouldn’t have to spend any of your own time or resources getting the software up and running.
What Should You Look for in an Outsourced Freight Auditing Service?
Why would you choose one freight auditing company over another? You’ll have to decide what’s most important to you out of the following factors:
- Financial stability
- Length of time in business
- Prior track record
- Ability to handle large dollar amounts
- Experience of their auditors
- Computing capabilities
- How they’ll interact with you
- EDI capability
- Supporting services available (legal advice, rate info, tariff filing etc..)
What do Good Outsourced Freight Invoice Auditors Check For?
A lot. There’s a lot of data and information to parse through. Here’s just some of the items they’ll audit to make sure you pay exactly what you should for your freight, and nothing more:
- Improper product classification
- Verification of discounts
- Verification of rates
- Math errors
- Incorrect billing
- Late deliveries
- Duplicate payments
- Currency exchange rates
- Frozen rates
- Correct tariff rates
- Waiver of accessorial charges
Is an outsourced freight invoice auditing service worth it? It’s a rare situation where it isn’t.
If you don’t outsource your freight auditing already, strongly consider doing it. It’s a huge opportunity to save money and get even more efficient than you already are.