The audit, especially post-audit of ocean freight charges from 2021,2022 and 2023 are vital to each Shipper organization.
In the United States, there is a 3-year statute of limiations enabling importers and exporters a unique opportunity to secure refund reparations from the logistics vendors who have incorrectly compiled their invoices.
When the bills are received, either via electronic data interchange (EDI) or manually, they are entered into the contractor's system, providing immediate visibility.
Auditors verify the bills' validity, mileage, duplicate payments, accessorial charges, and use of correct tariffs.
This process transfers the responsibility to correct freight calculation from the customer to the forwarder.
The 2nd option of buying packaged software allows the company to save time and resources in the invoice processing but the company will need to invest in the training of the staff and system infrastructure to maintain an expert process and system.
Inbound logistics noted that for many companies, outsourcing could be the most economical way to properly audit and process freight invoices.
The provider of a freight audit can also provide automated cost allocation, reduction of invoices and comprehensive reports for the customer to make intelligent business decisions such as consolidation of shipments to a certain forwarder and landed costing of each product group.
With large fluctuations in the surcharges, the accounts department will have lower visibility in accruing freight cost.