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It is a new era in business. High-volume shippers benefit from a parcel audit to make sure they are shipping at the right service level generating measurable savings. Brands must also protect their last mile promise by delivering on-time and on-budget. Are you being charged correctly? Are there unknown assessorial charges? Are your packages being delivered on-time?
Reduce transportation spend with smart parcel audit services.
It is important to keep your carriers honest with enVista performance, rate and billing audits. We perform a comprehensive review of your contracts making sure they align with service guarantees, level of service, pricing and performance. Benchmarking is a core competency for enVista and a central component of our strategic sourcing services. Take back control and command of your transportation spend. It is a complex and time intensive procedure to perform in-house, enVista’s experience and expertise provides the stress-free insights into your transportation and logistics activities that will help you make the right decisions for your business.
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What is freight audit and payment (FAP)? Learn about the importance of FAP and how it can help your business save on freight shipping costs.
A parcel audit, which can also be referred to as “small parcel auditing,” is an in-depth review of invoices from a shipper. Parcel audits are performed to identify incorrect or duplicate charges, as well as other inaccuracies that can raise a company’s parcel shipping prices. The parcel shipping auditing process makes sure that you are being billed correctly for the service level you received. A good parcel audit will find any billing errors in your parcel invoices and make sure you receive refunds where needed.
Parcel audits look for “service failures” from major shippers to make sure the terms of a contract are being met. The shipper is responsible for shipping the goods correctly and on time. When they fail to meet contract terms, it constitutes a service failure. Below are a few examples of service failures that could be costing your company money:
Unfortunately, these service errors are very common across the shipping industry. A good parcel audit checks for all these errors in service to make sure your company is not paying more than necessary for shipping services.
In the early days of parcel shipping auditing, companies mostly relied on manual auditing services to track shipments. Unfortunately, manual auditing is no longer a reliable or cost-effective option. Parcel audit companies now rely on parcel audit software as a cost-effective way to track parcel shipments and catch costly billing errors.Some smaller companies may choose to buy software and conduct parcel audits in-house, but this is increasingly costly. Most larger companies tend to hire a parcel auditing company to do this work for them. In addition to finding mistakes and getting refunds, parcel auditing services tend to save companies money because they are a cheaper alternative to performing audits in-house.
Most parcel shipping audit companies have a dedicated database for all major carriers. They provide these carriers with an overview of the shipping information, including charges, destination, etc. Parcel audit companies generally sue interactive dashboards powered by AI. Automated BI platforms are also often used to help identify overcharges. A good parcel audit software will spot any areas where you are being overcharged, which can give you leverage when negotiating with carriers. After a parcel is shipped, it is audited at each next step of the process. This allows companies to track their packages through every stage of the shipping process.
If the software finds a service failure, an invoice is automatically generated. Next, the invoice is automatically audited, and a claim is created. Then, the auditing team can easily contact the carrier with the claim. The software tool working in the background streamlines this entire process, lowering costs and eliminated human errors.
A good parcel audit company can save you time, money and headaches. The benefits of outsourcing your parcel auditing process include:
enVista’s freight audit and payment (FAP) solution was recently acquired by Körber—the leading supply chain software provider. Learn more about the acquisition and get in touch with the team to see how these solutions can help your business.
