Freight Payment Best Practices to Enable Cost Control

Freight Payment Best Practices to Enable Cost Control

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With ongoing recovery firmly in progress across multiple industries, one of the most significant challenges facing freight forwarders, supply chain managers, and transportation service providers is the issue of payment and freight bill payment service management. Transportation providers and logistical companies alike can benefit from the services provided by freight audit companies. As highlighted by a mid–2021 survey review from Gartner,More than one-third (36%) of participants responded with “cost management” as one of their top three obstacles in achieving their supply chain goals and objectives. When looking at responses from individuals in transportation and logistics, that percentage increases to 45%.” These experts make it easier to stay on top of invoice management, freight payment processes, and budgeting logistics. Transportation invoice audit providers can improve payment processes. Still, it’s also essential for all shippers to know the best practices to follow to enable better cost control through data-driven management. 

Manage Freight Bill Payment Services With Automated Billing and Invoicing

When shippers automate freight bill payment services, many mundane processes and steps become more streamlined. Time and resources are better delegated to critical services rather than wasted on tedious billing procedures. Such automation is beneficial for third parties serving a shipper with capacity, such as forwarders looking for carriers that can move loads. In addition to improving efficiency, shippers will also realize impressive savings as it is 67% less expensive to outsource freight payment services according to a JOC freight payment benchmark study

Establish and Maintain a Thorough Strategy and Internal Plan

Internal finance and budgeting plans are critical for any shipper that wants to keep profits high and expenses low. A thorough freight payment process and a custom internal planning arrangement can keep global supply chains moving smoothly and using data. They can ensure all parties maintain the same standards for performance and execution.

Investing in a Highly Developed and Integrated Payment Tracking System

Payment tracking and monitoring are critical components of managing freight bill payment services, minimizing losses, and maximizing profits. Innovative tools and systems, including automated billing and invoicing, can ensure strong ROI. With this service you’ll have valuable insights to accrual reporting capabilities providing visibility to what’s been shipped and not yet funded. However, that system should be easy to integrate with all your existing systems and unify the data streams into a single source of truth for freight data insight and application.

Standardize Shipping Cost Audits for Apples-to-Apples Comparisons

A vital distinction freight audit companies bring to the table is a standardized metric for comparing data and payment stats by normalizing and cleansing carrier data. Operating from apples-to-apples comparisons is critical for effective network strategy implementation. A quality freight auditing service and solutions company, like Intelligent Audit, makes this possible.

Use Advanced Duplicate Protection Controls like Anomaly Detection and Correction

Freight payment processes and customized services from auditing providers give forwarders an extra layer of protection. Auditing services make anomaly detection, repeat charges, and billing errors easier to detect and respond to freight network issues. The auditing software uses machine learning-based algorithms to continuously identify and correct anomalies or bring them to the attention of an actual person for correction. It can be challenging to understand the value of third parties, but given that all third parties carry the characteristics of shippers, the value quickly materializes through lower freight spending. 

Promote Transparency Throughout the Transportation Network

Transparency and end-to-end visibility become more intense and focused with the right freight bill payment services in place. When management, team members, and partners can easily collaborate, clarity comes into play and boosts profitability. Also, data-driven decision-making goes a long way toward reducing confusion and costs associated with shipping.

Maximize the Value of Data and Applying it Effectively With Personalized Account Management

Freight bill payment services, provided by data management experts, add another way to help today’s shippers do more with less. Embedded Account Managers offer expert guidance and personalized insights into billing and account management. Account Managers acting as an extension of your team proactively alert you of billing issues, cost saving opportunities, and every day account support who have been serving the industry for years.

Embrace Automation and Innovation Where Possible

Automated systems, machine learning, and artificial intelligence are changing the transportation industry. Innovative transport options give forwarders and shippers more choices for shipping services and more chances to connect with freight audit companies.

Eliminate Unnecessary Expedited Shipments and Additional Expenses

Shippers can save on expedited shipments with expert insight and assistance in managing and monitoring freight bill payment services. In turn, all network partners can save on expenses with expedited shipments. By carefully choosing shipping methods, optimized freight contracts remain strong.

Leverage the Services of a Freight Audit Provider to Hold Carriers Accountable

The final best practice for enabling cost control for all shippers is leveraging outsourcing. Outsourcing freight bill payment services yields more precise freight audit insights into carrier productivity and accountability. Knowing the costs by the carrier, mode and lanes can go a long way toward helping shippers know which decisions will help reduce expenses the easiest.

Partner With Intelligent Audit to Take Advantage of Freight Bill Payment Services

Today’s market is constantly changing and shifting in response to market needs and customer demands. With changes brought on by e-commerce, the continued recovery, and moving market trends, freight payment processes need to be automated, thorough, and data-driven. All shippers need those same capabilities. Ultimately, shippers and forwarders alike form a piece of the supply chain, and having the right software and auditing solution in place is critical to maximizing the value of freight bill payment services. Take advantage of freight billing services by partnering with one of the best and most world-class freight audit companies today–Intelligent Audit. Contact Intelligent Audit today to learn more about their industry-leading auditing services.

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