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Research from Texas A&M suggests that more than 80 percent of shippers overpay..."> <meta property="og:url" content="https://supply-chain.cioapplications.com/cxoinsights/freight-audit-and-recovery-the-secret-to-a-smart-supply-chain-nid-953.html" /> <meta property="og:type" content="article" /> <meta property="og:title" content="Freight Audit and Recovery: The Secret to a Smart Supply Chain" /> <meta property="og:description" content=" Does your shipping department regularly audit its freight bills? 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margin-bottom:auto !important; position:relative} #composition { height: 165px; margin: 0 auto !important; padding-bottom: 20px; padding-top: 0; width:100%;}.box1 { float: left; width:22% !important; min-height:0px; padding-bottom:0px; position:relative; margin-right: 15px !important;}.senior a> img{width:100%;}.senior{height:auto;}#arrow {float: left;padding-top: 6%;position: relative;}#slideInner{float:left;height: auto;position: relative;width: 95%;margin-right: -54px;}}.senior { border: 1px solid #B9C5CE; padding: 5px;}#youngest { padding-bottom: 10px;font-weight: bolder;font-size: 17px;}h3{line-height: 19px; font-size: 13px;text-align: initial;font-weight: bolder;}#sldtext{font-size:14px;}</style> <div id="composition1" class="col-md-12 col-sm-12 col-xs-12" style="display:none;"><input type="hidden" value = 8 id="flag_val"/><div id="youngest"><span class="Georgia16">Editor's Pick </span><span class="Georgia10">(<span id="sldtext">1 - 4</span><span style="font-size:14px;"> of 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style="">Transforming Supply Chain with SMAC and IoT</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Nathan Johnson, SVP and CIO, Werner Enterprises [NASDAQ: WERN]</span> </h3></div> </div> <div class="box1" id="huge"> <div class="senior"><a href="https://supply-chain.cioapplications.com/cioviewpoint/simplify-supply-chain-with-technology-nid-947.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top"><img src="https://www.cioapplications.com/newstransfer/upload/5jbbhStuart-Scott450.jpg" alt="Simplify Supply Chain with Technology" title="Simplify Supply Chain with Technology" border="0"></a></div> <div class="senior1"><h3><a href="https://supply-chain.cioapplications.com/cioviewpoint/simplify-supply-chain-with-technology-nid-947.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top" class="Georgia16" style="text-decoration:none;"> <span style="">Simplify Supply Chain with Technology</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Stuart Scott, EVP and CIO, J.B. Hunt Transport Services, Inc. [NASDAQ: JBHT] </span> </h3></div> </div> <div class="box1" id="huge"> <div class="senior"><a href="https://supply-chain.cioapplications.com/cioviewpoint/smart-infrastructure-for-supply-chain-management-nid-951.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top"><img src="https://www.cioapplications.com/newstransfer/upload/veh5qDaniel-Cavallin450.jpg" alt="Smart Infrastructure for Supply Chain Management" title="Smart Infrastructure for Supply Chain Management" border="0"></a></div> <div class="senior1"><h3><a href="https://supply-chain.cioapplications.com/cioviewpoint/smart-infrastructure-for-supply-chain-management-nid-951.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top" class="Georgia16" style="text-decoration:none;"> <span style="">Smart Infrastructure for Supply Chain Management</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Daniel Cavallin, CIO, Celistics</span> </h3></div> </div> <div class="box1" id="huge"> <div class="senior"><a href="https://supply-chain.cioapplications.com/cioviewpoint/3-guidelines-for-the-logistics-industry-in-the-age-of-business-transparency-nid-1379.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top"><img src="https://www.cioapplications.com/newstransfer/upload/q9fjggfgsgd.gif" alt="3 Guidelines for the Logistics Industry in the Age of Business Transparency" title="3 Guidelines for the Logistics Industry in the Age of Business Transparency" border="0"></a></div> <div class="senior1"><h3><a href="https://supply-chain.cioapplications.com/cioviewpoint/3-guidelines-for-the-logistics-industry-in-the-age-of-business-transparency-nid-1379.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top" class="Georgia16" style="text-decoration:none;"> <span style="">3 Guidelines for the Logistics Industry in the Age of Business...</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Eric Kierstead, CIO, Beavex Incorporated</span> </h3></div> </div> </div><div class="content" style="margin: 0px auto; width: 100%; display: none;" id="content_2"> <div class="box1" id="huge"> <div class="senior"><a href="https://supply-chain.cioapplications.com/cxoinsights/building-strategic-partnerships-to-innovate-supply-chain-nid-10801.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top"><img src="https://www.cioapplications.com/newstransfer/upload/ch0i6b450.jpg" alt="Building Strategic Partnerships to Innovate Supply Chain" title="Building Strategic Partnerships to Innovate Supply Chain" border="0"></a></div> <div class="senior1"><h3><a href="https://supply-chain.cioapplications.com/cxoinsights/building-strategic-partnerships-to-innovate-supply-chain-nid-10801.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top" class="Georgia16" style="text-decoration:none;"> <span style="">Building Strategic Partnerships to Innovate Supply Chain</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Shaun Bunch, Senior Vice President of Supply Chain Operations, Northern Tool + Equipment </span> </h3></div> </div> <div class="box1" id="huge"> <div class="senior"><a href="https://supply-chain.cioapplications.com/cxoinsights/easing-supply-chain-management-with-digital-transportation-nid-10734.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top"><img src="https://www.cioapplications.com/newstransfer/upload/nycpzUntitled-2.jpg" alt="Easing Supply Chain Management with Digital Transportation" title="Easing Supply Chain Management with Digital Transportation" border="0"></a></div> <div class="senior1"><h3><a href="https://supply-chain.cioapplications.com/cxoinsights/easing-supply-chain-management-with-digital-transportation-nid-10734.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top" class="Georgia16" style="text-decoration:none;"> <span style="">Easing Supply Chain Management with Digital Transportation</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Reuben Slone, Executive Vice-President, Board Director, and Committee Chair, Advance Auto Parts</span> </h3></div> </div> <div class="box1" id="huge"> <div class="senior"><a href="https://supply-chain.cioapplications.com/cxoinsights/impact-of-digital-transformation-on-supply-chain-nid-10381.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top"><img src="https://www.cioapplications.com/newstransfer/upload/gjmjb1.jpg" alt="Impact of Digital Transformation on Supply Chain" title="Impact of Digital Transformation on Supply Chain" border="0"></a></div> <div class="senior1"><h3><a href="https://supply-chain.cioapplications.com/cxoinsights/impact-of-digital-transformation-on-supply-chain-nid-10381.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top" class="Georgia16" style="text-decoration:none;"> <span style="">Impact of Digital Transformation on Supply Chain</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Johnny Ivanyi , Global Head of Distribution Operations, Bayer Crop Science</span> </h3></div> </div> <div class="box1" id="huge"> <div class="senior"><a href="https://supply-chain.cioapplications.com/cxoinsights/the-shifting-dynamics-in-supply-chain-nid-10380.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top"><img src="https://www.cioapplications.com/newstransfer/upload/7zyp41.jpg" alt="The Shifting Dynamics in Supply Chain" title="The Shifting Dynamics in Supply Chain" border="0"></a></div> <div class="senior1"><h3><a href="https://supply-chain.cioapplications.com/cxoinsights/the-shifting-dynamics-in-supply-chain-nid-10380.html?utm_source=google&utm_campaign=cioapplications_topslider" target="_top" class="Georgia16" style="text-decoration:none;"> <span style="">The Shifting Dynamics in Supply Chain</span> <br> </a> <span class="Verdanabold" style="color:#000;font-size: 12px;font-weight: normal;">Mike Wilson, CEO, Consolidated Chassis Management (CCM)</span> </h3></div> </div> </div> </div> <div id="arrow"><a href="javascript:;" class="right_cntrl_top"><img src="/images/arrow.png" alt="right" border="0" id="arr2"></a></div></div> <script type="text/javascript">$(document).ready(function () {var flag_val = document.getElementById("flag_val").value;/* alert(flag_val); 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line-height: 31px; font-weight:600; margin:3px 0;">Freight Audit and Recovery: The Secret to a Smart Supply Chain</h1> <p> Scott McDevitt, President & CEO, Translogistics</font></p>  <div id="innovation"><table width="592" border="0" style="border-bottom:0px; border-left:0px; border-right:0px; border-top:0px;"><tbody><tr><td valign="top" align="left" style="border-bottom:0px; border-left:0px; border-right:0px; border-top:0px;display: inline-flex;"> <div id="conference" style="width: 66px;"> <a href="https://twitter.com/share?text=Freight Audit and Recovery: The Secret to...#cioapplications via @CIOApplications&url=https://supply-chain.cioapplications.com/cxoinsights/freight-audit-and-recovery-the-secret-to-a-smart-supply-chain-nid-953.html" class="twitter-share-button">Tweet</a> <script>!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+'://platform.twitter.com/widgets.js';fjs.parentNode.insertBefore(js,fjs);}}(document, 'script', 'twitter-wjs');</script> </div> <div id="conference"> <div id="attend"> <script src="//platform.linkedin.com/in.js" type="text/javascript"> lang: en_US </script> <script type="IN/Share"></script> </div> </div> <div id="conference" style="line-height: 0px;"> <div id="fb-root"></div> <script>(function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.async=true; js.src = "//connect.facebook.net/en_US/sdk.js#xfbml=1&appId=488639531237057&version=v2.0"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk')); </script> <div id="conference"> <div id="attend"> <div class="fb-share-button" data-href="" data-type="button"></div> </div> </div> </div> <div id="conference" style="width: 100px;"> <div id="conference"> <div id="attend"> <div class="g-plusone" data-annotation="none"></div> </div> </div> <script type="text/javascript"> (function() { var po = document.createElement('script'); po.type = 'text/javascript'; po.async = true; po.src = 'https://apis.google.com/js/platform.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(po, s); })(); </script> </div> </td> </tr></tbody></table> </div>  <div id="borderlinestyle" style="margin-top: -31px !important;margin-bottom: 10px;"><img style="width: 100%;" src="https://www.cioapplications.com/images/line.png"></div></div> <div class="col-md-12" style="padding-left: 0px;padding-right: 0px;"><div class="section" id="desc_part"> <div class="section"> <div class="col-lg-5 col-md-5 col-sm-5"> <div class="text_style para-space"> <div class="news-float"><img alt="content-image" class="news-img-col news-img-col2" src="https://www.cioapplications.com/company_logos/3xnoq.3r5OsNo8.jpeg" style="margin-bottom:10px; margin-right:10px" /><p class="head-new" style="font-size: 14px;font-weight: bold; color: #000; border-top: 1px dotted rgb(221, 221, 221); border-bottom: 1px dotted rgb(221, 221, 221); clear:left; line-height: 20px;">Scott McDevitt, President & CEO, Translogistics</p></div> <p>Does your shipping department regularly audit its freight bills? Research from Texas A&M suggests that more than 80 percent of shippers overpay for their freight. Without regular freight auditing, the volume of overpaid or fraudulent bills can become unmanageable. This leads shippers and supply chain executives to utilize the capabilities and resources of a third-party logistics (3PL) provider, or beyond that, a logistics solutions provider (LSP).</p><p>Carrier mistakes are challenging to identify and can be time consuming to deal with, but an LSP that provides freight audit and recovery services will do the grunt work of examining, adjusting and verifying freight bills for accuracy. When done correctly, this exercise has not only been proven to recover significant funds–often hundreds of thousands of dollars–but also provides the intelligence needed to mitigate carrier mistakes in the future to save money year over year. More than that, freight audit programs that utilize the intelligence of a transportation management system (TMS) empower companies with end-to-end supply chain visibility and the ability to proactively conduct business and manage carrier relationships.</p><p><strong>How LSPs Conduct Freight Audit and Recovery</strong></p><p>With shipping charges making up approximately ten percent of a company’s total expenses2 and establishing a host of variables from base rates and discounts to fuel surcharges and accessorial charges, regular freight auditing is an enormous task for in-house accounts payable departments to tackle. In fact, for companies with multiple locations and without a TMS to enable enterprise-wide visibility, fully monitoring freight expenses and exposure is almost impossible.</p><p>An LSP will start a freight audit program by examining every single line of invoices from the past six months looking for errors such as invalid accessorial charges and classifications, duplicate charges, incorrectly assessed tariffs and service-level failures. For any identified errors, the LSP will contact the carriers on your behalf to recover the disputed funds and deliver savings. Some LSPs deploy a TMS to analyze freight data and contracts for additional savings and efficiencies.</p> <p><strong>Check Out: <a href="https://freight-audit-and-payment-solutions.logisticstechoutlook.com/vendors/top-freight-audit-and-payment-solution-companies.html" target="_blank"><span style="color:#0000CD">Freight Audit and Payment Companies</span></a></strong></p><p><strong>Enterprise-Wide Benefits of Freight Audit Programs</strong></p><p>Freight auditing is a time-intensive process that shipping departments and executives often overlook as an option due to a lack of time and resources.</p> </div> </div> <div class="col-lg-7 col-md-7 col-sm-7"> <div class="text_style"> <div class="quote"> <blockquote> <div class="quote-inner"> <p class="says">With the assistance of an experienced LSP and an intelligent TMS, there is no room for excuses about freight auditing being too time-consuming or burdensome</p> </div> </blockquote> </div> <p><br /> With the help of an LSP, however, companies are quick to recognize the immediate value of auditing, as well as the long-term impact it can have on a bottom line. In addition to reducing your administrative expenses and gaining insight into your unique shipping characteristics, the most valuable benefits a professional freight audit and subsequent expense management program provide include savings, enterprise-wide visibility and a proactive operating approach.</p><p><strong>□ Recover Funds and Realize Significant Savings</strong></p><p>Freight audit programs recover an average of 2-6 percent of total freight costs. Beyond that, regular freight audit and recovery programs deliver continual monthly savings by helping combine shipments, optimize rates and avoid added costs. LSPs are also experts at negotiating carrier contracts and for companies who blindly renew contracts each year due to a lack of resources, leveraging the experience of an LSP to manage carrier relationships and negotiate rates is advantageous.</p><p><strong>□ Improve Shipments and Enterprise-Wide Visibility</strong></p><p>Without the freight audit and <a href="https://expense-management.telecomtechoutlook.com/" target="_blank"><span style="color:#0000CD"><strong>expense management</strong></span></a> support of an LSP and TMS, companies have little to no visibility into their supply chain, especially if maintaining multiple locations. Without these resources, companies tend to rely on incoming freight bills to confirm shipment deliveries. With an LSP and a TMS however, companies can track shipments and detect patterns and efficiency opportunities, measure total freight spend and carrier accountability, immediately identify discrepancies in freight carrier bills and receive regular reports on the operation of each facility.</p><p><strong>□ Operate Your Business Proactively, Not Reactively</strong></p><p>By leveraging the freight audit insights from an LSP and TMS, companies can make smarter decisions when it comes to <a href="https://freight-management.logisticstechoutlook.com/vendors/top-freight-management-solution-companies.html" target="_blank"><span style="color:#0000CD"><strong>freight management</strong></span></a> and enterprise-wide operations. For priority orders and critical shipments, for example, shippers can view carrier choices and their corresponding on-time percentages to make more informed and cost-effective decisions. The expertise gleaned from an LSP combined with the functionality of a TMS also enables shipping managers to train their vendors to regularly optimize deliveries and automate shipment records.</p><p><strong>Choosing the Right Freight Audit and Recovery Partner</strong></p><p>As companies prepare for freight auditing, it is critical that they collaborate with a 3PL or LSP that aligns with their needs and expectations. Many freight audit and payment companies promise to recover funds within a set timeframe–while other LSPs focus on cleaning up the way your company conducts business to mitigate discrepancies from happening in the future. Ideally, your LSP partner will offer both. To find an LSP that focuses on accomplishing your short- and long-term objectives, ask them questions like:</p><p>□ How do you form carrier and vendor relationships and what advantages do you currently hold?<br /> □ Will you utilize and/or integrate a TMS to help with freight audit and recovery programs?<br /> □ How will you ensure steady improvement of my logistics operation?</p><p>Taking charge of your freight expense management is the single smartest action shipping departments and supply chain executives can take for their company. With the assistance of an experienced LSP and an intelligent TMS, there is no room for excuses about freight auditing being too time-consuming or burdensome. With significant savings typically recovered in just months, companies that are serious about improving their bottom line and fostering growth should prioritize engaging with the necessary resources to recover money and improve long-term financial propensity.</p> <p><strong>See Also: <a href="https://audit-management.cioapplications.com/vendors/top-audit-management-consulting-services-companies.html"><span style="color:#0000CD">Top Audit Management Consulting Companies</span></a></strong></p> <p><strong>                 </strong><a href="https://freight-audit-and-payment-solutions.logisticstechoutlook.com/vendors/top-freight-audit-and-payment-solution-companies.html" target="_blank"><span style="color:#0000CD"><strong>Top Freight Audit and Payment Technology Companies</strong></span></a></p> </div> </div> </div> </div> </div></div> <style>#riz { float: left; margin-right: 30px; margin-top: 8px; }#riz h3 { display: inline-block; position: relative; padding: 0 14px; margin: 0; height: 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