21 August 2018
An effective freight audit in 8 steps
Within the shipments and their costs management, the Freight Audit is becoming strategic.
Many businesses look over the short-term savings, and use Audit as the tool for the optimization and the visibility of the logistics.
It is an important instrument; however, its name may deceive: it indicates only a part of its activities and results.
In his elementary form, the Freight Audit’s role is to verify that the providers of the shipments are paid properly, without surprises. Applying it in a strategic form means having immediately correct and already checked data, ready to be used to bring the saving, value and efficiency in all the processes about logistics.
The eight steps used to set a system of effective Freight Audit:
- Elimination of the paper, in favor of the automatization: creation of a paperless system of Freight Auditmakes the process faster and more effective.
- Releasing the process from the purchasing order: often there is a focalization on the purchasing order, which may bring therefore the omission of the process for accessory costs, which requires a lot of time to be solved. These costs are usually difficult to calculate with the conventional systems.
- Show the required flexibility(not more, not less) to the shippers: a good system of Freight Audit is flexible and able to adapt to the vectors.
- Think and react in strategic terms: the impact of the Freight Audit is deeper than what the most think. The results can go from the commercial and financial organization, and not only within the logistic field.
- Simplify the shipment lists: a good partner in the Freight Audit will help you to make the tariff simpler, establishing the limits for the accessory expenses and will help you to harmonize other cost mechanisms. This is an occasional exercise, but continuous and will bring big benefits, other than making the process more effective.
- Automatize the distribution of costs: with an advanced platform, every shipment cost will be located automatically on the bases of the costs centres.
- Avoid the services of digitalization of the invoice: the shippers can send their invoices and billing files directly to the provider of Freight Audit.
- Proceed towards the full logistic visibility: benefit from the vantages of the full guaranteed transparency of the evolved systems of reporting, as for example the reports on the shipment profiles, a full comprehension of the accessory costs, shipments spot used and even more. The full logistic visibility will help to improve your organization.
Contact us for a free check-up on your Freight Audit process.