Freight Audits: How Companies Can Do It In-House

Ecommerce businesses are in a constant struggle to achieve customer satisfaction. Each part of their team must work to ensure packages are delivered on time, handle customer queries promptly, expand their product line, and many other issues. But when it comes to freight bills, they miss potential cost-saving opportunities.

Businesses either do the freight audits manually, or they hire a third-party freight auditing company. However, companies can do the entire process in-house without spending time on manual audits or thousands on third-party companies. Here is a short guide with things e-commerce companies must know about freight audits before asking a third party to do the process.

Freight invoices contain multiple errors

Over 20% of courier invoices contain errors, usually due to incorrect inputs. Whether it’s size, weight, or the wrong discount, courier invoices have multiple errors that can substantially increase shipping costs. By performing an in-house audit, companies can keep track of this information and ensure they get a prompt refund from their courier for any extra charges.

In-house freight auditing is more secure

Most e-commerce companies are auditing their invoices through a third-party company. But there have been instances when a third-party company files for bankruptcy, and the company’s information is lost in the process. By doing the entire freight audit process in-house, e-commerce businesses can avoid this and keep a complete record of their invoices and historical data on shipments.

Outsourcing freight invoice audits is too expensive

The cost of outsourcing freight invoice audits can be 5-10% of the company’s budget and a hefty upfront fee. This shrinks a companies’ profit margins. E-commerce businesses can cut this expense by doing their freight audits in-house with freight audit software.

Data must match with a company’s freight system during the audit

A thorough freight audit must ensure the data on freight rates, weight, and volume are updated. Companies have freight systems they use to get quotes from couriers, and each of those quotes can be different depending on the courier, which can lead to information overlap if a third company does the audit. With an in-house freight audit, businesses can easily compare data against their courier manifest and find potential errors in a company’s freight bills.

The right freight audit software can save businesses thousands

E-commerce companies can purchase freight audit software that can analyze data from thousands of invoices.Software that can check courier invoices line-by-line and instantly find discrepancies in weight, volume, and discounts will save companies time and money.

Also, software that integrates with a company’s courier account can do this process automatically and generate a full discrepancy report in seconds. This allows businesses to do the entire freight audit process in-house while they potentially save thousands on one of their most significant overheads — courier costs.

E-commerce companies must adapt to the shifting competitive landscape. Since freight bill errors are common, it’s important to keep track of every shipping expense. For this reason, realizing a proper freight audit will go a long way in saving thousands for a businesses’ future expansion plans.