Talk:Freight audit

Added link to GT Nexus

Waterygrave (talk) 05:19, 2 April 2011 (UTC)

Semi-protected edit request on 17 January 2024
This section needs more clarity:

It currently reads:

Complexity of Freight Audit Rising freight cost is an emerging area of concern as seen in recent years. The cost of freight has been rising due to the increase in oil prices and all freight cost is highly dependent on the cost of transportation which relates directly to fuel prices. With high fluctuations of fuel costs, low visibility of the future freight costs and high complexity of the freight quotes, freight cost verification are vulnerable to human and process errors and this requires proper auditing to ensure that the organization does not overpay for services it did not incur.

The forwarder freight rates are usually maintained in multiple spreadsheets and usually each forwarder has a different freight rate format to the customer. An organization is daunted with the task of calculating the freight rates manually and this task can be challenging when the customer has hundreds of shipments shipped each month. Most organizations do not have the manpower to calculate all the freight invoices issued to them and at best, they perform random sampling to check if the sample invoice is billed correctly. Some organizations have the manpower to perform freight audit themselves, the manual and tedious efforts required for a freight audit will usually end up much more expensive than an outsource vendor might be able to provide.

Many Freight Auditors are now offering Parcel Auditing Services which include UPS, Federal Express, DHL, Purolator etc.

It should be changed to:

Complexity of Freight Audit Rising freight costs since the Pandemic have affected all transporation modes; ocean, air, truck, rail and parcel. The cost of freight has been rising due to the increases in both raw materials, supply chain disruptions, oil and increases in freight costs. The velocity of pricing changes amongst transporation vendors has created difficulty for the benefical cargo owner to understand the true cost of each individual shipment. For example, with ocean freight, in 2021, one week the cost for an average cargo owner was $20,000 per contianer, and then 5 days later $26,000 and then 5 days after that $17,000. Since freight invoices are based on the date the vendor records receipt of the cargo, each ocean container could potentially be overbilled more than $5K any given time. Most benefical cargo owners have over 50 containers a year, leading to a potential refund due exceeding $100,000 or more. In all tranport modes, freight cost verification are vulnerable to human and process errors and this requires proper auditing to ensure that the organization does not overpay for services it did not incur. Ocean is a unique freight audit service in that the United States Government allows for a three year retroactive refunding of overbilled/incorrectly issued and paid freight charges. Ocean freight is an espeically overlooked freight audit mode since too few firms have the expertise to specialize in it. Firms that have proven ocean freight audit services include Ocean Audit, FreightAudit.com, Cass Information Services, Intelligent Audit and Data2Logistics.

The forwarder freight rates are usually maintained in multiple spreadsheets and usually each forwarder has a different freight rate format to the customer. An organization is daunted with the task of calculating the freight rates manually and this task can be challenging when the customer has hundreds of shipments shipped each month. Most organizations do not have the manpower to calculate all the freight invoices issued to them and at best, they perform random sampling to check if the sample invoice is billed correctly. Some organizations have the manpower to perform freight audit themselves, the manual and tedious efforts required for a freight audit will usually end up much more expensive than an outsource vendor might be able to provide.

Many Freight Auditors are now offering Parcel Auditing Services which recover refunds from major parcel vendors such as UPS, Federal Express and DHL. Freight auditors that specialze in parcel are considered niche providers since parcel refund recovery is often tied in with parcel contract negotiaions. In essence, parcel freight audit is designed to recover short term lost funds and achieve future cost savings. FreightAudit (talk) 19:40, 17 January 2024 (UTC)
 * Red information icon with gradient background.svg Not done: please provide reliable sources that support the change you want to be made. M.Bitton (talk) 01:25, 19 January 2024 (UTC)