Establishing a regular auditing schedule helps businesses to maintain accuracy and control over their freight expenditures. Many shipping contracts include discounts based on factors like volume or service levels. A detailed parcel audit ensures that all eligible discounts are properly applied to your invoices, preventing overcharges and reducing overall shipping costs. Finding a partner that can streamline operations, reduce costs, and enhance Accuracy is critical for success. ITech, a company specializing in freight invoice processing using machine learning and freight invoice auditing, is uniquely positioned to provide these benefits.

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With that many parcels on the line, it’s critical for high-volume shipping companies to understand how much they’re being charged by their carriers and why. Regular parcel invoice audits can provide companies with insight into what surcharges and fees shippers are being billed for. It reveals if they can save money by filing claims or if there are improvements that can be made to internal processes to avoid surcharges in the future. In this article, we’ll explore what kinds of points to look for in an audit and the types of parcel audits companies can perform. The freight audit process involves several key steps, starting with the collection of freight invoices from the past 1-5 years. This data must then be organized and analyzed to identify errors, overcharges, or inconsistencies with the agreed rates outlined in your contract.

Existing Carrier Agreements

Outsourcing to specialists can eliminate the need to hire Retained Earnings on Balance Sheet and train additional staff, while also leveraging advanced software for precise audits. This partnership can provide actionable insights and reporting that guides strategic decision-making. Additionally, external providers can scale their services with your business growth more flexibly than in-house solutions. While both financial audits and logistics audits seek accuracy and compliance, the latter focuses specifically on the supply chain.

Key Freight Audit Terms

As transportation methods evolved, so did the efficiency and reach of parcel delivery, with the rise of air freight in the 20th century further shrinking delivery times. Even if pre audits are done, a more extensive post audit can provide an additional freight post audit analysis using a larger selection of invoices. If a carrier makes a mistake on one invoice, the same mistake may be made on other invoices. If you notice inaccuracies on your FedEx invoice, it’s essential to address them promptly. Contact ICC Logistics, and our team of expert auditors will assist you in obtaining all of the refunds your company is entitled to.

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We find DIM weight issues, misapplied surcharges, and missed refund claims. We help uncover UPS billing errors — from late deliveries to minimum charge violations. We’ve been auditing parcel invoices since before most providers existed — long before APIs and platforms entered the game. The benefits of working with a partner like ShipSigma include time savings, more accurate reporting, and larger refunds—as well as the experience and industry insights they bring to the table. In this post, we’re going to take a closer look at how a shipping auditor or auditing process works, so you can better understand which approach might work best for your business. You can’t risk missing any loose ends or leaving any stones unturned during negotiations.

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• We take your raw invoice data and layer on the cost of the carrier to service your account – this allows us to see all of the data that is outside of your view.
• We’re not better negotiators; we’re just backed by AI-driven technology that allows us to see live market data.
• A great audit partner makes this step simple by using technology that can automatically pull this data from your carrier accounts.
• Regular audits also detect fraudulent activities, safeguarding the company’s finances..
• The right shipping carrier will accept the data you present to them from your audit and move to make changes to ensure that your partnership remains intact.
• While immediate refunds are great, the real power of an audit lies in its ability to drive long-term cost reductions.

Here at LTX, we provide extensive knowledge and a wide variety of transportation services combined with customizable software solutions to bring you the most enhanced customer experience. Let us freight audit for you, to provide your company with a team of experts and all the benefits that go with it. We value teamwork, integrity, innovation, and value creation, hoping to serve as an extension of your company and use lean initiatives to streamline your transportation and chain processes. When it comes to freight or parcel auditing, there are three different approaches to consider, each with its own advantages and disadvantages. You can conduct audits manually, invest in auditing software, or partner with a third party—like ShipSigma—for parcel auditing and related services. Using your own data with our technology, we offer detailed and specialized insight into your specific shipping What is bookkeeping costs.

Freight Pre Audit and Freight Post Audit

• Our advanced tools examine FedEx invoices for service failures, duplicate billings, surcharge errors, invalid late payment fees, and incorrect address corrections.
• ICC’s parcel audit services are designed to uncover hidden overcharges, invoice discrepancies, and compliance issues, without disrupting your operations.
• Errors can stem from various sources, including incorrect billing for weight, dimensions, shipment classification, or delivery time frames.
• It ensures accurate billing, prevents overcharges, and helps optimize costs.
• Many shipping contracts include discounts based on factors like volume or service levels.

ICC Logistics specializes in FedEx invoice audits, ensuring that you’re not overpaying and maximizing your savings. With our expertise, you can trust that your FedEx invoices are thoroughly reviewed for accuracy, saving you money and optimizing your shipping processes. Freight audit entails meticulously examining and validating freight invoices along with other pertinent shipping documents to ensure their accuracy and reliability. The process includes checking the freight charges, quantity, weight, and other details. Freight audits help businesses identify and rectify discrepancies in shipping bills, which can lead to cost savings.

Freight Cost Reduction Strategies to Integrate in 2025

Simply put, an audit checklist is a list of activities and tasks that must be performed during each audit. It works globally across FedEx, UPS, DHL, USPS, and over 1,200 carriers. And because it is seamlessly connected with other solutions like branded tracking and intelligent returns, it creates a truly unified post-purchase ecosystem. Another example involves a manufacturing firm that streamlined its shipping processes, reducing overall costs by 7% through the identification and correction of billing discrepancies. Automated systems streamline the auditing process, reducing manual errors and increasing efficiency.

Understanding the Job Description and Salary of a Freight Auditor

• This ensures that the amounts billed match what was initially agreed upon, preventing unexpected costs.
• Learn what a shipping audit is, its types, benefits, and best practices.
• For example, the nature of your product—its dimensions, weight, packaging—could be causing some erroneous charges you could avoid.
• We will provide you access to detailed reports with tracking-number-level details to know exactly how much money you’re saving, down to the penny.
• Duplicate charges can occur when the same shipment is billed more than once.

It’s a proactive way to make sure you’re only paying for the services you actually receive, at the price you agreed upon. By systematically analyzing your shipping data, you can turn your invoices into a valuable source of insight for future savings. Manual work can’t efficiently compare shipping invoices with every shipment’s carrier rates and contracts. A parcel audit software can compare performance with service guarantees promised by your parcel carrier. Outsourcing freight audits shipping invoice to third-party providers can alleviate the administrative burden on your internal teams.

Staying abreast of these trends will enable businesses to continuously improve their shipping efficiency and cost management strategies. You only pay a portion of the savings we generate for your business, making this a no-risk opportunity to improve your bottom line. Today, the U.S. is one of the world’s leading nations in parcel delivery, alongside other massive markets like China and the UK. With billions of packages crisscrossing the globe annually, the parcel delivery industry has evolved into a complex, tech-driven powerhouse. From real-time tracking to automated sorting systems, technological advancements have revolutionized how parcels are shipped.