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What to Look for in a Freight Audit and Payment Service Provider

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Supply Chain Mapping

enVista’s Doug Kahl and Dominic McGough recently sat down with industry analyst and host of Talking Logistics, Adrian Gonzalez, to provide insight into what attributes shippers should look for in a freight audit and payment service provider.

Doug Kahl’s Response

It’s one thing to be able to rate and audit a freight charge. But it’s also important to ensure that an audit provider’s rating tools can address all of the complexities and aspects of pricing with each and every individual mode. And not just with every individual mode, but be able to do it with every shipment. That varies from a lot of shippers who will do their audit on more or less a random sample type basis and just don’t have the time and resources to audit each individual shipment – they’re just looking for a trend.

Also, a good audit provider should have a means to communicate exceptions to a carrier and be able to stay with it through the exception process, communicating back and forth with the carrier to reach a resolution agreement of what that charge should be.

As for payment, the first key is recognition of authorized vendors – to be able to verify what carriers should be paid, should be in the system and eligible to receive payment of a shipper’s money. Second, make sure that a shipper’s funds are distinct in secure accounts; that they are not co-mingled with any other client’s money. Third, make sure that there is limited access to the account – the fewer hands that are in the account, the more secure those funds will be. Finally, separate the individuals involved in the receipt of funds from those that conduct disbursement of the monies to the carriers.

Dominic McGough’s Response

I would encourage customers to look for where the carriers are located and where the freight payment companies are based. I’d look at what their local infrastructure is and the languages and coverage they have.  When dealing with multiple parts of Europe and Asia and dealing with some of the accounts clocks and accounts receivable people, it’s beneficial if the effort is made to communicate in the local language so they feel the process.

When you look at the shiny office in America, that’s one thing. But what’s the structure and infrastructure around the globe that supports the operation so your locations and carriers receive the same standards of service, wherever they may be.

Hear More from Doug and Dominic

Click below to listen to the entire episode of Talking Logistics in which Doug Kahl and Dominic McGough discuss the current state of global freight audit and payment in addition to steps shippers can take to protect themselves and minimize costs.

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