Last week we shared the first of our three-part series of posts inspired by American Shipper’s Transportation Payment Benchmark Study, which surveyed nearly 190 payers (shippers and 3PLs) to uncover insights and trends in freight payment technology, auditing and strategy. This week we’ll discuss the study’s findings on current auditing practices.
Auditing is an important process for any business, especially freight. Performing audits both before and after making payments ensures that finances stay on track. As the following findings show, many businesses are diligent about auditing, while others are leaving room for error.
- The Finding: Two-thirds of system-based respondents see value in their audits, whereas 44 percent of manual respondents find audits valuable.
- What It Means: Auditing manually is very time consuming. When using a system to audit, the respondents saved time and in turn were better able to recognize the value of audits.
- The Finding: Forty-four percent of manual shippers were uncertain if their audit savings met expectations.
- What It Means: The time commitment and margin of error that results from auditing manually can lead to uncertainty and discontent.
- The Finding: Sixty percent of the manual shippers surveyed had never hired a third party to conduct an audit of their ability to accurately pay freight bills, had only conducted one of these types of audits in the last five years, or were uncertain if an audit of this type had been completed. Whereas only 32 percent of systems-based shippers hadn’t or were uncertain if an audit had been conducted by a third party audit in this timeframe.
- What It Means: Systems-based shippers are more aware of their payment process and better equipped to have a third party review it. Meanwhile a significant number of manual shippers are unable to be certain that their payment processes are being handled efficiently or accurately.
This freight payment audit data demonstrates something we could easily predict – that systems-based shippers are more aware and certain of their current payment processes. Furthermore, because they don’t have to dedicate time and effort to manual auditing, they are better able to recognize the value of audits.
At Trans International, we’re proud to provide our clients with a number of services that can improve auditing and payment systems. We offer freight bill auditing, reporting, and payment systems to easily organize, assure and fulfill our clients’ freight payments.
We’re curious, how does your company handle freight payment and audits? Let us know in a comment or contact us directly and we’ll do whatever we can to provide the system you’re looking for.