Freight Audit Checklist

Freight audits are critical for businesses seeking to manage their logistics expenses effectively. By closely examining freight bills and ensuring that the charges levied by carriers align with contractual terms, companies can significantly reduce their freight costs.

Below is our comprehensive freight audit checklist for conducting thorough freight audits, incorporating the best practices to optimize freight cost management.

Step by Step Guide: Freight Audit Checklist

1. Gather and Organize Freight Documentation

Freight Bills and Invoices: Collect all relevant documents, including invoices, bills of lading, and delivery receipts.
Contracts and Agreements: Ensure access to all current freight contracts and broker agreements to verify terms and conditions.

2. Verify Carrier Compliance

Rate Confirmation: Check that the rates billed match the rates negotiated in your freight contracts.
Service Verification: Confirm that the services billed (like expedited shipping) were actually delivered as per the agreement.

3. Check for Billing Accuracy

Audit for Duplication: Look for any duplicate charges across multiple invoices.

Classification Errors: Ensure the freight class and weight are correctly listed and billed according to the National Motor Freight Classification (NMFC) standards.

4. Use Freight Audit Software

Automation Tools: Implement nVision Global’s freight audit software to automate the verification process, reduce errors, and speed up the review process.

Data Analytics: Utilize analytical tools to identify patterns in billing errors or opportunities for cost savings.

5. Manage Freight Claims

Identify Potential Claims: Review for any potential freight claims due to damage, loss, or overcharges.

File Claims Promptly: Use nVision Global’s freight claims management solution to streamline claim submissions and tracking.

6. Review Freight Payment Processes

Payment Accuracy: Ensure payments match the audited amounts and comply with payment terms.

Timely Payments: Monitor payment schedules to avoid late fees and maintain good carrier relationships.

7. Optimize Freight Costs

Cost Reduction Strategies: Identify strategies for freight cost reduction, such as carrier negotiations, mode optimization, and consolidation opportunities.

Contract Renegotiations: Use audit findings to renegotiate contracts for better rates and terms based on historical data and shipping volumes.

8. Regular Audits and Continuous Improvement

Schedule Regular Audits: Establish a routine for regular freight audits to continually manage costs and improve processes.

Feedback Loop: Implement a feedback mechanism to learn from each audit cycle, adapting procedures to enhance future audits.

9. Leverage Expertise

Consult with Experts: Engage with nVision Global’s freight audit experts for insights and assistance to optimize your freight audit process.

Training and Support: Ensure your team is well-trained in using nVision Global’s tools and understands best practices in freight auditing.

A comprehensive freight audit is essential for controlling and reducing freight costs. By following this checklist and utilizing advanced solutions like nVision Global’s freight audit and payment solutions, businesses can ensure they are not overpaying for shipping services and are positioned to negotiate the best possible terms with their carriers.