Freight costs can be a significant expense associated with a business. Still, fortunately, there are software programs, such as AuditERP, that create user-friendly reports to help with carrier contract negotiation. Effective contract negotiation is vital to reduce costs associated with freight.
Easier Invoice Auditing
The utilization of freight auditing creates easier auditing of invoices. Random auditing of invoices is critical to uncover discrepancies. These discrepancies can be used as leverage when negotiating a new carrier contract. You should either receive a credit or a discount towards your next contract to compensate for the discrepancies, assuming they are favorable.
Without the use of freight auditing, you may have never found these discrepancies. Unexpected charges like accessorial charges, price hikes, and surcharges can be uncovered by freight auditing. These charges can add up quickly and drive up the freight costs. Auditing the invoices can reduce all of those charges. Accurate invoices lead to accurate reports.
Increased Visibility in Reports
Freight auditing can also lead to increased visibility through the use of reports. By implementing freight auditing software, you can gain valuable insight into the logistics of shipping patterns. Data such as total freight costs, high shipping months, and unusual expenses can all be extracted with the assistance of freight auditing software. This insight can provide you with crucial negotiation points to reduce costs.
For example, you may determine that your freight is not accurately utilizing the total freight capacity. You may be able to reduce the number of times your products are shipped out, which will dramatically save freight costs. Freight capacity is a vital negotiation point when looking into signing a new carrier contract. You want to maximize freight capacity while reducing freight charges to decrease freight costs effectively. Freight auditing can shed insight on this data to assist you in making informed decisions on carrier negotiation.
Decrease in Turnaround Time
Just like freight auditing can lead to more accurate reports, it can also decrease turnaround time. By having effective control over-invoicing, the data will go into your software correctly and give you accurate reports in return. You will not need to spend copious time ensuring the data is correct using freight auditing software.
Instead, you can focus your time and workforce on growing the business and negotiating new contracts. More time and effort spent on carrier negotiation can lead to more favorable outcomes, saving you money in the long run. Instead of guessing the amount you want to negotiate with suppliers, you can have concrete information on how much you are willing to spend and a reasonable amount. This is extremely important when saving money with carrier negotiation.
Your Next Steps to Freight Auditing: AuditERP
Freight auditing is an invaluable tool for effective control over freight and producing cost-saving strategies during carrier negotiation. Software systems, like AuditERP, can be implemented for minimal costs, making carrier negotiation easy and beneficial.
Check out AuditERP, an SAP-integrated freight auditing software that can review and approve your freight invoices in seconds. Sign up today for a free demo of the software!