Use our Software to Audit Freight Bills to prevent freight cost variances
It is estimated that 5% to 10% of all freight invoices contain inaccuracies use software to audit freight bills. Typographical mistakes on weight, misclassification or improper reclassification and the addition of accessorial charges that were not or need not be provided, there are also reweigh errors. How does this happen and how can you prevent it? The answer is, while you can’t always prevent them, you can correct them, if you contact the carrier as soon as you find out. The wrong time to find out about an increase in cost is when the freight bill arrives.
With ShippersEdge, continuously monitoring your shipment as it moves through an LTL carrier’s system, you will be alerted whenever your estimated charge, actualizes into a higher charge. When you get notification promptly, so you can rectify it promptly. Take the case of a reweigh increasing the cost of your shipment (you don’t usually see them go down) and you know that you scaled the shipment at your shipping point. The origin terminal weighs the shipment on their forklift scale and makes an increase in the weight, substantially increasing its weight. You can contact the carrier and have their destination terminal reweigh the shipment to verify the increase, before the shipment delivers. Reweighing shipments is big business at LTL carriers.
Would you do this on all reweighed shipments? Probably not, but at some tolerance level it is cost effective to challenge the higher weight. Most people set a tolerance. If it’s a reclassification, this is probably more important to challenge so you can either amend your system with the correct freight class or convince the carrier, they are applying the wrong classification(s). Once the shipment is delivered it is usually too late to prevent the overcharge.
Finally, there are accessorial charges sometimes added that just isn’t so. Liftgate or inside delivery come to mind immediately as some carriers may add this charge if they’ve never been to this destination before. Any unforeseen accessorial charges should be investigated as they tend to become permanent based on a delivery address. In ShippersEdge, once you know the delivery point accessorial charges, you can add that to the address book for that customer and the requested service will be added to your freight rate estimate and just as importantly put the requested service on the bill of lading thereby preventing expensive redelivery charges.
ShippersEdge is a full featured TMS for small to midsized businesses. It is affordable shipping software that pays for itself easily and saves time. Our powerful rate generator allows you to compare freight rates, track shipments and freight charge changes in real time.
ShippersEdge also provides reporting so you can monitor which of your carriers are creating the most exceptions and use that data in rate negotiations and carrier selection criteria, after all what good is the lowest rate carrier if they’re always increasing the weight on your shipments?
There is much more to ShippersEdge. Talk to ShippersEdge 952-777-4421 or read more about ShippersEdge