Auditing is a time-consuming process, but it’s key to a successful business. Even with logistics software, it’s still possible to make mistakes in the shipping manifest or invoice. This can result in an overcharge, which ultimately affects your overhead. If you use any type of common carrier or line haul shipper, it’s imperative that you have some form of freight bill pre-audit and post-audit in place. Here’s why.
Freight bills should always be audited before they’re paid. This is a great way to find new savings opportunities and confirm that all contractual obligations are in place. This in turn helps you apply the correct taxes and rates.
Limited by Contractual Language
A freight bill pre-audit should be supplemented with a post-audit to determine whether there has been an overcharge. Keep in mind that contracts often contain a statute of limitations in terms of when you can recuperate an overcharge. For motor freight like LTL or dedicated truck transport, the time frame is usually 180 days from date of delivery.
Maintain a Tight Trail of Documentation
To implement a successful freight bill pre- and post-audit program, you need to keep a tight trail of all the documentation, including the contract, terms of service, invoice, bill of lading, and so on.
Protect Yourself with Freight Bill Pre-Audit & Post-Audit Practices
Contact us at Machine Transport to schedule your next shipment of machine tools. We always advise our clients to conduct both types of audits. Too many companies only perform one of the audits or none at all. Carriers are prone to human error and do make mistakes on invoices. You can never be too careful when reviewing the bill of lading. Trust Machine Transport with your machine tool shipping needs and we’ll make sure your shipment is taken care of and that you’re billed correctly.
Dedicated Brokers for the U.S. Advising Freight Bill Pre-Audit & Post-Audit Practices
Serving suppliers in the U.S., Canada & Mexico
Posted on June 18, 2022 | Published by Ignite Local | Related Local Business