Today’s most successful companies focus on collaboration and value chain. Companies who are inter-connected, who share knowledge and resources within their industry, have a stronger position on the market, as they operate more efficiently and adapt faster to changing market demands. Their fast response is enabled by their business intelligence.

The freight costs can make up to 10% of the total spend of a company. They are dependent of the cost of transport, related to fuel surcharges. The fluctuation of fuel surcharges, the limited and/or inaccurate shipping data, sometimes available not in only one system, the complexity of the transport rates and the different rates formats and rules applicable, as well as the limitations of the existing ERP systems to calculate accurately the freight costs, leave many companies with the option of freight audit performed with internal resources. This is a labor intensive, manual, high risk audit process, that does not provide you with the transparency you target for, or with the compliance required by Sarbanes-Oxley act – high costs for low return. Also, you do not have the capability of forecasting the freight costs (accruals).

Auditorience control Auditorience control An alternative to this is buying audit software, which eliminates most of the shortages of the internal invoice audit solution, but requires specialized personnel, knowledgeable in transportation.

The preferred solution for many companies is outsourcing. This allows you to focus on your core business, while the audit of your freight costs is performed by freight audit experts. Although the cost of outsourcing may seem to be higher than buying packaged software, it includes the maintenance cost of a freight system which may cost more for a team of non experts from the customer to manage plus it provides you with transparency, flexibility and compliance. Choosing for outsourcing enables you to cope easier with eventual fluctuations in your business volumes and it enriches the business intelligence of your organization.