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A freight audit refers to the process of reviewing and verifying transportation invoices to ensure accuracy, compliance with agreed-upon terms, and identification of any discrepancies or overcharges.
Freight audit refers to the process of comparing transportation invoices with shipping agreements, contracts, and delivery documentation. This helps verify that the charges are correct, identify potential discrepancies, and ensure that all terms, including discounts and fees, are applied properly. By conducting a freight audit, companies can improve financial accuracy, reduce errors, and potentially uncover significant savings.
Freight audits involve reviewing all shipping invoices to match the terms outlined in contracts and shipping documentation, verifying that the charges align with what was agreed upon. This process not only identifies overcharges or billing errors but also ensures that all discounts and terms are accurately applied. By implementing a freight audit, businesses can reduce the risk of financial errors, streamline the payment process, and improve cost management. Ultimately, a freight audit helps businesses optimize their shipping costs, enhancing both profitability and efficiency.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Freight audits are crucial for ensuring that companies are not overpaying for shipping services. By thoroughly reviewing transportation invoices, businesses can identify discrepancies, correct billing errors, and ensure compliance with negotiated shipping terms. This process leads to better cost control, enhanced financial accuracy, and the potential for significant savings.
For example, an automotive company that regularly conducts freight audits may discover recurring overcharges for fuel surcharges or late fees, leading to corrective actions and long-term cost savings. By auditing every freight bill, businesses can also optimize their contracts and shipping strategies for even greater efficiency and lower overall expenses.
