Freight Bill Pre-Audit and Post-Audit: Why You Need Both

Freight Bill AuditAuditing is a time-consuming process, but someone has to do it. Even with logistics software, it’s still possible to make mistakes in the shipping manifest or invoice. This can result in an overcharge, which ultimately affects your overhead. If you use any type of common carrier or line haul shipper, it’s imperative that you have some form of freight bill pre-audit and post-audit in place.

Freight Bill Pre-Audit and Post-Audit Reduces Overcharge

Freight bills should always be audited before they’re paid. This is a great way to find new savings opportunities and confirm that all contractual obligations are in place. This in turn helps you apply the correct taxes and rates.

A freight bill pre-audit should be supplemented with a post-audit to determine whether there has been an overcharge. Keep in mind that contracts often contain a statute of limitations in terms of when you can recuperate an overcharge. For motor freight like LTL or dedicated truck transport, the time frame is usually 180 days from date of delivery.

To implement a successful freight bill pre- and post-audit program, you need to keep a tight trail of all the documentation, including the contract, terms of service, invoice, bill of lading, and so on. With that in mind, you’re unlikely to recover losses if the contract and agreement was written on the back of a cocktail napkin.

Protect Yourself with an Audit

Contact Machine Transport to schedule your next shipping of machine tools. We always advise our clients to conduct both types of audits. Too many companies only perform one of the audits or none at all. Carriers are prone to human error and do make mistakes on the invoice. This is why you can never be too careful when reviewing the bill of lading. Take it from us when we say that both freight bill pre-audit and post-audit are equally important. Trust Machine Transport with your machine tool shipping needs and we’ll make sure your shipment is taken care of anf that you’re billed correctly.
Edited by Justin Vorhees

Dedicated Brokers for all of Your Freight Shipping Needs

Serving suppliers in the U.S., Canada, and Mexico