Cost Management Beginner

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

  1. Connect data - Link to carrier invoices/accounts
  2. Automated review - Software analyzes every invoice
  3. Identify errors - Flag refund-eligible issues
  4. File claims - Submit refunds on your behalf
  5. Track recovery - Monitor claim status
  6. Receive refunds - Credits applied to carrier account
  7. 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
  • 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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