After spending time negotiating rates with carriers, it’s important to make sure they hold up their end of the bargain. Errors like measurement blunders, pesky duplicate charges, and more can cost you a lot of money.

The best solution to these issues is a parcel auditing service that uses data analytics to identify mistakes. But what exactly do these freight audit services do? Contact Mindful Logistics LLC for specialized services.

The more insight you have into your shipping costs, the better. A comprehensive parcel audit can help you uncover a range of hidden expenses and reveal data that you can use to streamline your shipping processes. In addition to identifying refunds that can be used to minimize your shipping spending, an accurate audit can also verify surcharges such as variable fuel costs, special handling charges and accessorial fees. It can also check that your carrier is honoring discounts you’ve negotiated and ensure that you are receiving the most current rate information.

When you are armed with real-time data, you can spot errors as they happen and take steps to resolve them before they lead to large financial headaches. This is especially true if you’re using a software program that automates the audit process rather than relying on manual labor. This type of system can save you time and money and provide a higher level of accuracy than a manually conducted audit.

Whether your in-house team is performing the audit or you’ve outsourced the work to a third party, it’s crucial that you keep up with regular small parcel audits. This will allow you to catch errors and overcharges in their earliest stages, which can lead to substantial savings. It will also show your carriers that you are a reliable partner who pays close attention to the fine print in your agreements.

While many companies are reluctant to outsource their logistical functions, it can be in their best interests to do so when it comes to parcel audits. Performing these tasks in-house can be expensive and labor-intensive. Using a 3rd party can free up your in-house resources so you can focus on the tasks that are most important for your business.

When you select an auditor, look for one with a robust platform that offers a variety of shipping services, including invoice analysis and optimization. It should also offer a flexible payment schedule and easy-to-use interface for your in-house auditing team. Additionally, consider the benefits of an automated invoice auditing program that uses artificial intelligence and anomaly detection to speed up the process and eliminate human error.

Reduced Expenses

Using a professional parcel auditing service is one of the most effective ways to optimize your shipping operations and save money. Parcel auditing companies have the expertise and proprietary software to identify billing errors and secure timely refunds from carriers. By taking a proactive approach to parcel auditing, you can avoid unnecessary expenses that drain your company’s profits.

A comprehensive small parcel audit focuses on verifying every detail of a shipment’s charges and fees to make sure that you only pay for the services your business receives. This includes reviewing extra fees like address corrections, dimensions weight overcharges, and accessorial charges. It also looks for errors in rate verification, ensuring that the rates you agreed to and negotiated with your carrier are accurately applied to each invoice.

Another benefit of a parcel audit is that it helps you uncover savings opportunities in your supply chain. For example, if your organization frequently ships items that don’t belong in ground transport but could be sent via air, an audit can help you find those opportunities and implement changes that can significantly reduce your shipping costs.

While some businesses may be hesitant to outsource their parcel auditing, using an automated system can make the process faster and easier, while still providing a high level of oversight. Automated parcel auditing software uses AI and anomaly detection to spot errors in invoices, so that you can resolve them as quickly as possible.

In addition to saving money on unnecessary shipping expenses, conducting regular small parcel audits can also build strong relationships with your carriers. When you demonstrate that you’re a reliable partner by consistently getting your invoices right and paying on time, they’re more likely to step up their service by offering more expedient delivery options or renegotiate contract terms to better meet your needs.

Better Relationships with Carriers

The money that shipping invoice errors drain from your business is money that could be invested back into your operations. It could be spent on product development, hiring new employees, or fueling growth. By identifying these errors and asking for refunds from carriers, you can reclaim this money that rightfully belongs to your company. This will help you to keep your expenses under control and to build strong, productive relationships with your carrier partners.

By performing a parcel audit regularly, you can identify areas for improvement within your business processes. For example, if you are frequently paying for ground transport when your shipments would be best served by air transportation, a parcel audit can identify this opportunity and show you how much you can save by making this change.

Another area that often results in overcharges is incorrect weight entries. A good parcel audit will identify these mistakes and request corrections from your carrier. This can result in significant savings for your company over time.

Having this knowledge of your carrier’s billing practices also provides leverage when it comes to negotiating rates or renewals. If you can demonstrate that a certain service or practice has been costly for your business, you may be able to negotiate a better contract for yourself.

One final benefit of a parcel audit is the ability to discover opportunities for cost savings that you might not otherwise have seen. For example, many shippers are unaware that they can get a refund from FedEx and UPS for mistakes in their volumetric weight calculations. A parcel audit will help to identify these opportunities and give you the confidence to take advantage of them.

By taking a close look at your shipping costs and identifying ways to improve your processes, a parcel audit can help your business save money and grow. It is a process that every logistics business should implement, as it can have a profound impact on the health of your business over time. By performing regular audits, you can ensure that your company is getting the most value out of its relationship with its shipping carrier and can optimize its freight decisions for long-term success.

The Bottom Line

Small parcel audits reveal errors and savings opportunities that pave the way for improved rate negotiations with carriers, resulting in long-term financial benefits. Using an automated freight audit process enables businesses to streamline operations, diminish errors and elevate customer satisfaction.

The key to successful rates negotiations is making sure your negotiated rate is applied accurately on every invoice. Unfortunately, human error is common in shipping and can add up to unnecessary costs over time. Whether due to incorrect weight entries, duplicate charges or misapplied shipping rates, a small parcel audit can catch these mistakes and help you reclaim the funds you deserve.

By uncovering overcharges and mistakes on UPS and FedEx invoices, a parcel audit helps companies save up to 15% of their total transportation budget. But it’s not just about saving money — the right parcel audit software can provide valuable data-driven insights into shipping processes and carrier performance that make it easier to control expenses, strengthen relationships and optimize business operations.

There’s a lot to do when it comes to managing your company’s shipping processes and negotiating rates with your carrier partners. While many companies may choose to handle these tasks in-house, relying on a third-party to audit your UPS and FedEx invoices can free up employees to focus on more important tasks that will help drive the business forward.

It’s also possible to save even more money by leveraging an automated small parcel audit that eliminates the need for manual labor and provides the accuracy of the latest technology. A fully-automated process makes it easy to spot issues and identify missed opportunities for refunds.

In addition to identifying shipping errors, an automated process can identify additional discounts and accessorial fees that were overlooked or wrongly charged by your carrier. This is especially important when it comes to addressing inaccurate address corrections, which can lead to costly mistakes and overcharges. Audintel, for example, identifies these issues and requests refunds when they occur.

In a time where businesses are increasingly focused on streamlining their operations and optimizing their shipping decisions, a comprehensive small parcel audit can help to minimize costs, increase efficiency and strengthen relationships with carriers. It’s no wonder why these benefits are driving supply chain leaders to go all-in on a parcel audit solution that is as powerful as it is simple to use.