Your company’s success depends on the efficiency of its shipping network. Companies are required to carefully keep track of their shipping costs to ensure it does not incur a loss. Are you set up for success? Follow this freight bill auditing checklist to set your company up for success.
A business’s main priority is to deliver the right product to the customer on time to build a lasting relationship. The second is to maximize the company’s bottom-line by shipping the product in a cost-efficient manner.
To achieve that, your business should be regularly auditing its freight charges to ensure accuracy. Keeping track of the data and its accuracy will lead you to make smart business decisions, grow the company, and increase profit margin.
Performing a freight bill audit will supply you with enough data to identify weak points and highlight ways for your business to improve overall performance.
Centralize all your invoice data into an editable system online. You should be able to pull up past invoices when you need it promptly. Within your system, you should be able to sort your invoices by date, company, or other factors you need.
To make it easier for you to analyze the invoices, group the freight bills by carrier and sort within the groups according to date from oldest to newest. You’ll be able to compare past and current freight charges and see if you’re paying more than needed for shipping.
Here’s the hard and long part in auditing your freight charges. Comb through the information for potential errors and ensure that you are performing the right steps.
Analyze your freight invoices and bills to make decisions that would improve your shipping efficiency and cut costs. Here are some goals to consider as your business grows and continues to ship products.
Now that you’re aware of the many factors that affect the total dollar amount for a freight bill, it’s time to set your benchmarks to see how and where you’re spending money for shipping. By having all the data in front of you, you’ll have the knowledge to set realistic shipping goals for your business to strive towards.
Shipping rates are affected by a myriad of factors like mileage, type of product, and fees associated with pickup/delivery. Not only that, each carrier presents the information differently, which makes keeping accurate track of freight invoices and bills difficult, especially if your business is doing it manually.
Save shipping costs and increase your business performance by automating your freight audits via shipping software solution or outsourcing.
At ShipERP, we offer a freight audit automation solution to improve efficiency and support data-driven decisions for your company. AuditERP is designed to alleviate your freight bill inconsistencies, especially for SAP environments. It integrates seamlessly with your SAP ERP and ShipERP shipping software, communicating directly with carriers, whether or not they operate on the SAP platform.