Why You Need Freight Audit in 2023
In the first month of 2023, we’ve seen numerous companies lay off staff, a softening freight market, decreasing freight rates, and other signs of a softening market and impending recession. While experts disagree about whether a recession is on the horizon, enterprise leaders should prepare by reducing costs and increasing operational efficiencies.
An investment in Trax’s freight audit and payment technology can provide between 4.5 and 8.5% transportation cost savings for invoice processing. Download our fact sheet to preview our technology suite that empowers complex supply chains with greater visibility into and control of their transportation costs.
Reduce Costs with Freight Audit
Cost reduction through freight audit occurs a few different ways—through more accurate and timely freight payments, through insights into shipping costs and carrier performance, and through the optimization of an enterprise’s end-to-end supply chain.
Accurate and Timely Freight Payments
Without auditing your freight bills, you have no visibility into the accuracy of your transportation spend. Are carriers charging your agreed upon rates? Are carriers double invoicing for shipments? Are late fees and accessorials being added to your freight bills? These scenarios add unnecessary costs to your transportation spend—a freight audit and payment provider works with your supply chain organization to minimize errors, reducing costs and improving carrier performance and relationships.
Transportation Spend Visibility
An external freight audit and payment provider allows for visibility and insights into your entire supply chain. Does one specific shipping lane always collect detention and demurrage charges? Are you sending empty trucks back to their origin without checking if there is freight that could return? Does one carrier invoice with incorrect or expired rates? Without a global, multimodal freight audit and payment partner, you have no visibility into these patterns and trends. With the insights provided by an end-to-end freight audit platform, cost reduction and improved efficiency become the name of the game.
Freight Audit in 2023
While it may seem counterintuitive to add a new service provider to your supply chain tech stack while simultaneously cutting costs, freight auditing provides an ROI that will pay for itself. Basic freight audit reduces costs, while the additional insights into your supply chain allow for cost-saving measures such as lower freight and fuel costs from optimized routing, trend forecasting that accurately predicts inventory needs, decreased need for human capital to process invoices, and powerful spend intelligence capabilities.
Contact us today to set up a consultation to learn more about Trax and how we can work together to manage your transportation spend.
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.