5 Considerations for Choosing a Freight Audit and Payment Provider
As inflation and costs rise, enterprise organizations are feeling mounting pressure to reduce costs while simultaneously increasing operational efficiencies. This is a tall order – even for the most sophisticated logistics teams.
Enter freight audit and payment technology. With the economy facing choppy waters, enterprises must remain strategic with their investments. So, while adding another program to your supply chain tech stack may seem counterintuitive in today’s market, Trax customers achieve transportation savings between 4.5% and 8.5%. In addition to cost savings, outsourcing your freight audit and payment processes comes with its fair share of other benefits – including streamlining operations, driving efficiency, and empowering visibility.
Long story short, without an effective freight audit program, you're missing out on a fully optimized supply chain. But, like any supply chain technology, there are many freight audit and payment providers to choose from and choosing the right one will depend on the specific needs and requirements of your company.
Here are the top considerations when evaluating FAP providers:
Globally Managed Service Capability
There are numerous carriers and LSPs globally, so conglomerating information can be a headache. FAP providers should help you organize the varied global information into a simple structure, while simultaneously defining cost centers. This leads to a clear view of expenditure in a timely and precise manner, allowing you to clearly see exactly where and how money is spent.
The provider should offer their services on the global stage, and yet simplify them enough for you to make well-informed decisions quickly.
Flexible Data Management Framework
Look for partners who understand the importance of data management and provide greater visibility into data. This delivers more precise auditing, higher compliance standards, and a more informed vision for the future.
Third-party freight audit and payment providers can integrate their data management framework with carriers and logistic service providers (LSPs), as well as crucial systems such as ERPs, SAPs, warehouse management systems, and others. The result delivers a coherent, comprehensive way to view and analyze data.
The right partner should provide rate management for the services your company offers—such as trucking, LTL, ocean, and/or airfreight. With higher rate visibility comes better spend planning, cost savings, and profit margins.
Rates and claims verification is crucial, and through the right provider, it’s all made simple. The partner will help eliminate mistakes and increase accuracy in verification processes.
The world of logistics and supply chain management is undergoing two significant transformations simultaneously: globalization and digitization. The right FAP technology partner can help you keep up with growing complexities in supply chains and the need to account for multiple carriers, currencies, locations, plus heightened consumer demand for faster delivery times.
Going Beyond Freight Audit and Payment
While FAP will be the bread and butter of the provider’s offerings, it shouldn’t be the only offering. The savviest freight audit and payment providers recognize the needs of customers on a larger scale and consider other ways they can help them build a resilient supply chain. Trax views this from a green lens and created Carbon Emissions Manager. This innovative tool tracks and benchmarks actual carbon emissions across transportation networks – all modes, vehicles, and regions – while integrating with broader Environmental, Social, and Governance (ESG) reporting.
Investing in a freight audit and payment provider has exceptional results like cost savings, optimized resources, increased growth, and improved operations. While we’re happy to guide you to transportation spend management maturity, the 2023 Gartner Market Guide for Freight Audit and Payment Providers is a great place to start.
Trax is the global leader in Transportation Spend Management solutions. We partner with the most global and complex brands to drive meaningful optimizations and savings through industry-leading technology solutions and world-class advisory services. With the largest global footprint spanning North America, Latin America, Asia, and Europe, we enable our clients to have greater control over their transportation performance and spend. Our focus is on your success.