Freight Audit
Also known as: Freight Bill Audit, Transportation Audit, Carrier Invoice Audit
Definition
Freight auditing involves systematically reviewing shipping invoices to catch billing errors, duplicate charges, and rate discrepancies. Studies show 3-10% of freight invoices contain errors.
Common Billing Errors Found
| Error Type | Example |
|---|---|
| Duplicate billing | Same shipment invoiced twice |
| Wrong rate applied | Using list rate vs. contract rate |
| Incorrect weight | DIM weight miscalculated |
| Wrong freight class | Higher class than actual |
| Invalid accessorials | Charges for services not rendered |
| Address corrections | Incorrect surcharges |
Freight Audit Process
- Collect invoices - Gather all carrier bills
- Match to shipments - Verify each charge has a shipment
- Validate rates - Compare to contracted pricing
- Check accessorials - Verify each surcharge is valid
- File disputes - Claim refunds for errors
- Process payment - Pay verified invoices
Audit Options
Manual audit: In-house review using spreadsheets Automated audit: Software compares invoices to contracts Outsourced audit: Third-party handles entire process (often contingency-based)
Savings Potential
- Average recovery: 2-5% of freight spend
- ROI on audit software: 300-500%
- Time limit to dispute: Usually 180 days
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