Freight Audit Software: An Explanation and Key Features
The increasing volatility of the global supply chain has reinforced the need for a freight audit and payment solution for global shippers. The end-to-end supply chain visibility provided by freight auditing software is the most powerful solution for global enterprises missing a clear view of their total freight costs.
Trax’s freight audit software, powered by Transportation Spend Management (TSM), provides a holistic view of a company’s total global transportation spend, which can lower costs by uncovering extraneous freight charges. Unnecessary charges, poor routing and planning, double billing, and other human errors are all issues that can be solved with a comprehensive freight audit solution.
Freight Auditing Software
Freight auditing software analyzes freight invoices for inaccuracies, ensuring you pay carriers only what you were quoted in contract negotiations. You gain better visibility and control over the entire billing process and other aspects of business that affect your bottom line — cost allocation and timely accruals, for example.
When powered by Trax’s TSM, freight audit software gives you visibility into freight costs across your entire business operations, which can reveal smarter ways to maximize trade routing (also decreasing your carbon emissions and supporting your organization’s ESG goals) and predict future transportation costs.
Freight Cost Audit Software
Freight costs have increased significantly in the past few years, thanks in large part to the volatility of the market during the covid-19 pandemic. While many aspects of our lives have normalized, it will take time for transportation costs to return close to pre-2020 levels. The addition of accessorial fees and surcharges, plus detention and demurrage charges incurred due to port congestion and staffing difficulties, can make it challenging to ensure your freight invoice is accurate.
Freight Cost Audit software ingests, cleanses, normalizes, and connects data from disparate systems for centralized intelligence that catches carrier invoice errors and decreases shipping costs for your organization.
Freight Bill Audit Software
By some estimates, 25% of freight invoices contain errors, making accurate and timely accounting, reporting, and payment nearly impossible. With freight bill audit software, your organization can uncover improperly charged fees, avoid double paying invoices, and ensure carriers are paid correctly and on time.
The freight audit process provides your company with more accurate invoicing. With accurate invoicing comes accurate data. With accurate data comes insightful analytics on the state of your transportation spend, allowing stakeholders to make informed decisions and track KPIs and other essential business analytics.
Freight Audit vs. Parcel Audit Software
Freight audit software and parcel audit software serve the same purpose — to audit invoices for accuracy against contracted rates. However, the scale of the audit performed differs. Parcel audit deals with small parcel shipments, usually delivered via courier. Freight audit involves larger freight shipments, which can include air freight, ocean freight, LTL, truckload shipments, and courier shipments. Freight audit involves carrier invoices of full pallets or full truckloads rather than individual parcels. It should ideally encompass your total transportation spend to give you full visibility into your supply chain.
Key Features of Freight Audit and Payment Software
A solid freight audit and payment software provider will offer a holistic view of your transportation spend, so you can ensure the data you receive is beneficial to not only your bottom line — it also feeds into analytical dashboards, creating actionable business intelligence and improving visibility into every step of the Transportation Spend Management process.
There are several key features you should look for in freight audit and payment software so you can be sure the process is working for you:
- Your freight audit and payment software should be fully automated and customizable to any business rules, so no manpower is spent on manual freight invoice auditing or learning new technical skills.
- Your data should be cleansed and normalized so other transportation systems can read it.
Freight Invoice Audit
- The freight auditing process should cover liability, duplicates, tax accuracy, freight, accessorial, and other contracted rates.
- Your policies should be configurable so you can audit against shipment- and customer-specific requirements.
- Your cost allocation should be configurable and customizable to any rules.
- Your freight audit and payment software should ensure efficient and timely payments to your carriers and improve carrier relationships.
- Your freight audit solution should include a dedicated Customer Success Manager responsible for all elements of your success's strategic and operational aspects.
- Your freight audit and payment provider should include local knowledge and a dedicated team in every region.
- Regular program reviews allow your team to align on objectives, track progress, and identify improvements.
Freight Audit Software Providers
There are several freight audit software providers in the marketplace. The right provider for you will match your needs regarding freight audit and payment, as well as overall business intelligence and customer service. Your freight audit company should be able to work throughout your global transportation network - across all modes and in all regions.
Another important factor in choosing the best freight audit software provider for your enterprise is their industry expertise. Working knowledge of your specific industry is beneficial, so the audit provider has a good general idea of your logistics operations and challenges. They should also have local offices in the regions you do business to ensure they know local languages, laws, and customs.
Trax: The Best Freight Audit Software for Enterprise Organizations
Trax’s Freight Audit software, powered by Transportation Spend Management, is the leading freight audit and payment solution for global enterprises. No other tool gives you end-to-end visibility like our suite of capabilities, ranging from carrier and rate management, carbon emissions management, claims and accrual management, TraxPays, and so much more.
If your organization has a global supply chain and recognizes the need for data neutrality and spend management maturity, let us help you control transportation costs and schedule a consultation with Trax today.
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.