With the inception of shipping carriers such as FedEx, DHL, and UPS, doing business across the planet has been made easier. Retailers and vendors can now rest easy knowing that their customers from overseas will receive their packages and parcels through these freight companies.
Sadly, as more demand for parcel shipping grows, shipping rates follow an upward trend as well. Supply chains keep getting longer making freight costs skyrocket even more. Whether or not you use any or all freight services, you should keep tabs on certain aspects of your logistics. One amazing tool you should possess in your arsenal is the ability to audit your parcel bill to uncover opportunities of bringing the cost down. In this guide, we will give you a few tips of success when it comes to UPS auditing.
What is freight auditing?
In simple terms, a freight audit refers to the process of analyzing and validating a shipping carrier’s invoices. In the present day and age, retailers use software to pay and follow up on their freight bills but there are certain aspects of the process that can only be conducted by hand. Whichever method is used, a freight bill audit occurs after receiving a freight invoice. Payment should be made only after the accuracy of the invoice has been confirmed.
Leading Tips of Success
1. Look for duplicate invoices
It doesn’t matter if you work with an internal or external auditor but the first thing you should look out for when auditing your freight invoices is the presence of duplicate invoices. This is a common phenomenon among freight carriers. Search for invoices with similar dollar amounts, those with identical invoice and vendor numbers who have been paid in different accounts, and those with same vendors and similar details (routing number, bank account, and address).
2. Check for proper classification
There’s a set standard by the NMFTA that allows for comparison of commodities from different companies. It is also recommended to check if your freight is properly charged and classed accordingly.
3. Discounts
If you have an agreed discount with your carrier, be sure to confirm if it has been captured during the UPS auditing exercise.
When done right, freight bill auditing can save you a ton of cash. If you use freight carriers regularly, you cannot afford to skip this all-important exercise unless saving money and uncovering crime don’t mean much to you. And if you do, you need to know that you letting someone else enjoy your money because you are not keeping track of where they mess up.
