Parcel Audit Service
Also known as: Shipping Audit Service, Carrier Audit Service, Freight Audit Service
Definition
A parcel audit service is a company that reviews your shipping invoices to find errors, overcharges, and service failures that qualify for refunds. These services typically work on contingency, taking a percentage of the money they recover.
What Parcel Audit Services Check
| Issue Type | Example | Recovery |
|---|---|---|
| Late deliveries | Guaranteed service missed deadline | Full shipping cost |
| Weight errors | Billed for wrong weight | Overcharge amount |
| Zone errors | Wrong zone applied | Overcharge amount |
| Duplicate charges | Same shipment billed twice | Full duplicate |
| Surcharge errors | Invalid surcharges applied | Full surcharge |
| Rate errors | Contract rate not used | Difference |
| Lost packages | No delivery scan | Declared value |
How Audit Services Work
- Connect data - Link to carrier invoices/accounts
- Automated review - Software analyzes every invoice
- Identify errors - Flag refund-eligible issues
- File claims - Submit refunds on your behalf
- Track recovery - Monitor claim status
- Receive refunds - Credits applied to carrier account
- Pay fee - Service takes percentage of recovery
Pricing Models
| Model | How It Works | Typical Rate |
|---|---|---|
| Contingency | % of recovered refunds | 25-50% |
| Flat fee | Monthly subscription | $100-500/mo |
| Per shipment | Fee per package audited | $0.01-0.05 |
| Hybrid | Base fee + lower contingency | Varies |
Choosing an Audit Service
Consider:
- Carrier coverage (UPS, FedEx, USPS, regional)
- Recovery rate track record
- Pricing structure
- Reporting and analytics
- Integration capabilities
- Contract terms
Popular Parcel Audit Services
- 71lbs
- Shipware
- AuditShipment
- VeriShip
- Spend Management Experts
Self-Audit vs. Third-Party
| Self-Audit | Third-Party Service |
|---|---|
| Keep 100% of recovery | Pay percentage/fee |
| Requires staff time | Automated |
| Need audit expertise | Experts handle it |
| Build internal tools | Use their technology |
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