Some key questions the report answers include:

• Why outsource this function? In addition to cost reduction, outsourcing the freight audit and payment function enables shippers to reduce time spent on tasks like collecting carrier invoices, conducting freight invoice audits, making payments to carriers, and pulling detailed reporting on freight costs and services.

The highly regulated nature of the U.S. transportation market is another factor pushing shippers to  freight audit and payment services. The report shows that shippers are adopting these services to ensure compliance with various regulations.

• How big is the market? The report notes a market value of $696.11 million in 2022 and projects that number to reach $1.85 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.67% from 2024 to 2030.

• What are the market segments? Currently, the market is bifurcated based on organization size, mode, industry verticals, and geography.

• Large organizations make up the largest market share, accounting for 64.48% of the market in 2022, with a market value of $448.87 million. The report projects this number will grow at a CAGR of 13.67% during the forecast period.
• Road freight accounted for the largest market share of 39.16% in 2022, with a market value of $272.59 million. It is projected to grow at the highest CAGR of 14.33% during the forecast period.
• Top industries included in the market are retail, manufacturing, food and beverage, and healthcare. Retail accounted for the largest market share of 31.35% in 2022, with a value of $218.21 million and a CAGR projection of 13.84% during the forecast period.
• Regionally, the market is classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America accounted for the largest market share of 44.9% in 2022, with a market value of $312.57 million and is projected to grow at a CAGR of 13.77% during the forecast period.

THE CUSTOMER:

Musco Family Olive Co. is the country’s largest producer of black ripe olives. After more than eight decades in business, the third-generation, family-owned California company now works with more than 450 farmers and runs the first food-processing plant in the world to achieve a Level 2 Safe Quality Food ethical sourcing certification.

THE PROVIDER:

Founded in 1982, AFS Logistics, based in Shreveport, Louisiana, provides differentiated logistics services to more than 1,800 customers and employs more than 380 employees across seven locations.

Musco, which boasts eight decades of history, is the largest producer of black ripe olives in the United States. The company works with more than 450 California farmers, providing olives that are transported to four warehouses in the United States and then distributed to retailers across the country.

Musco’s olive-processing plant in California is a near-zero-waste facility and the first food-processing plant in the world to achieve a Level 2 Safe Quality Food ethical sourcing certification.

Despite its robust operations, Musco is still a relatively small, third-generation, family-run company. It doesn’t have extra resources it can easily allocate to areas outside its functional expertise—namely, olives.

Working within those constraints, Lin set several supply chain and logistics objectives: reduce manual processes, enhance the freight audit process, and boost the company’s ability to identify location and arrival times of in-transit freight so it could more proactively address customer questions and continue to provide quality service. Achieving these goals would also help Musco scale its operations and offset increasing logistics costs.

Lin kickstarted a partnership with AFS Logistics, with whom he’d worked at a previous company. Based in Shreveport, Louisiana, AFS provides logistics services, including freight audit and payment, as well as parcel, less-than-truckload, and transportation management services to more than 1,800 clients.

Revamping the Carrier Dynamic

The two companies first collaborated on a domestic managed transportation program, says Andy Dyer, president, transportation management for AFS.

At the time, Musco was working with a number of incumbent carriers. While Lin didn’t want to drop them, he wanted to make sure they were meeting Musco’s business needs, had solid safety records, and were reliable and cost-effective.

Through carrier reviews, Musco and AFS were able to confirm that the incumbent carriers would continue to provide optimal service.

In addition, AFS provided Musco with access to a range of additional carriers from across the country. As a result, Musco doubled its carrier mix.

ENSURING STRONG RELATIONSHIPS

The AFS team also guided Musco on the benefits of building relationships with carriers. Strong relationships help ensure Musco can maintain its partners not just in good times, but also when the business encounters challenges. “We stay loyal to our carriers as long as they’re within reason, while also introducing other carriers. Having that access has been huge,” Lin says.

As they accumulate data on carriers’ service levels, the partners also engage in network analysis. For instance, Musco and AFS work together to assess if it makes sense to adjust forward stocking locations, given changes in demand or customer demographics.

Musco previously lacked a coordinated process for tendering shipments. This occasionally led to double- or triple-brokering loads. And, some brokers would re-broker freight to asset-based carriers, prompting concerns about maintaining integrity in the chain of custody.

AFS now coordinates Musco’s annual freight bids. AFS only considers asset-based providers for the carrier network, reducing the likelihood of shipments being brokered multiple times. To ensure Musco can leverage cost-effective shipment options, AFS receives outbound freight shipment notices via electronic transmission. AFS can then access competitive rates from a national pool of vetted carriers.

Once a shipment is booked, the transaction automatically loads into Musco’s ERP system, streamlining the billing process and enabling shipment tracking. This reduces the amount of time previously spent on tasks like manually coordinating and managing shipments.

The managed transportation service from AFS also helps Musco adjust to market changes by providing information that helps to optimize the transportation mode for each shipment.

Branching out With Track and Trace, visibility

Before working with AFS, Musco’s lack of an effective track-and-trace system limited its visibility to shipments. Now, by using the AFS transportation management system (TMS), Musco has access to visibility on shipment location, as well as costs and carrier operating performance. This data enables Musco to address issues as they arise, so it can continue to maintain quality service.

This data also aids in reducing customer chargebacks, which Dyer says is a key capability for Musco. Retailers, and particularly grocers, can impose significant penalties when a supplier makes a mistake. Working with AFS, Musco is able to receive data from carriers on arrival and wait times that it previously could not access. With this data, Musco can challenge claims that, for instance, deliveries arrived after the scheduled delivery time.

In addition, because Musco hadn’t been rigorously auditing its less-than-truckload, truckload, or intermodal freight, management couldn’t ensure billing accuracy. And with limited visibility into freight costs and load status data, it was difficult to dispute claims on issues like on-time in-full, as well as customer deduction claims. As a result, Musco was at risk of overpaying accessorial charges.

Getting Serious About Audits

Musco Family Olive Co.’s processing plant in California is a near-zero-waste facility and the world’s first food-processing plant to achieve a Level 2 Safe Quality Food ethical sourcing certification.

To help Musco exert more control over fees and surcharges, AFS implemented an invoice audit process across all transportation modes. By providing a comprehensive review of every bill, Musco can recover many overcharges and minimize the risk of overpaying. Without this information and process, fighting fines and fees often becomes time consuming and cumbersome, Lin says.

The invoice audit process also consolidates Musco’s weekly bills into one invoice, providing timely insight into transportation costs.

Musco also worked with AFS to streamline its order fulfillment process. Now, Musco sends order details to AFS via an SQL (structured query language) download, which then feeds into the AFS TMS. AFS also provides a gateway to exchange files and messages with other external trading partners, such as carriers.

Now, when orders drop, Musco no longer needs to manually disseminate information across the company and enter it into the system, Lin says.

Over time, the relationship between Musco and AFS has expanded to include imported containers as well. On these international shipments, AFS acts as Musco’s advocate in the market.

Musco’s network of warehouses also underwent analysis as part of the new partnership with AFS. By reviewing the network’s costs and services, Musco determined it could consolidate some facilities, reducing overall inventory levels. The two companies continue to periodically tweak the network.

“Quarterly business reviews are a great opportunity to flesh out other opportunities from a service or from a cost standpoint,” Lin says. This also enables Musco to redeploy employees who’d previously been dedicated toward freight, he adds.

Enjoying Process-Driven Results

By implementing more efficient processes and technology, Musco lowered its total transportation spending by more than 10% in the first year of its partnership with AFS. It also identified additional opportunities for cost reduction, leading to another $50,000 in savings, also during the first year. Subsequent reviews have led to warehouse network optimization opportunities that Musco is currently pursuing, Lin adds.

Leveraging technology for gains

Musco also was able to double its carrier mix. And through the partnership, Musco has leveraged technology that helps it adopt a process-driven approach.

Becoming more aggressive about pursuing different shipping options is the next big frontier for Musco, Lin says. This could mean reducing the number of containers or even taking trucks off the road by shifting from a less-than-truckload to a multi-stop approach.

“We’re peeling back the onion and asking, ‘What exactly are we doing? And is there a different way versus just being efficient with what we’re doing?’” Lin explains.

Whatever strategies Musco decides to pursue, Lin says AFS is key to achieving their goals. “The AFS operations team is in constant communication with us when things are good, and they’re in front of it when there are hiccups,” he says. “We get talented people who know what they’re doing and can drive value in our decision making.”

Case Study: Growing the Grove

The Challenge

Introducing greater rigor and automation to Musco’s logistics and supply chain processes, with a goal of maintaining quality service and offsetting rising transportation costs.

The Solution

Musco partnered with AFS Logistics, leveraging the 3PL’s managed transportation service and implementing both its freight bill audit and payment and order fulfillment solutions. AFS also introduced greater structure to carrier relationships and regularly assesses the company’s logistics network.

The Results

Among other benefits, Musco lowered its transportation expense by more than 10% in the first year of the partnership, while identifying opportunities to gain an additional $50,000 in cost reduction, also during the first year of the partnership. It doubled its carrier mix and restructured roles and responsibilities to improve the value contributed by employees.

Next Steps

Evaluate different means of shipping to further cut costs and boost efficiencies.

Even as it grows, the FBAP industry remains resilient, providing technology, software, and service offerings that transcend traditional freight audit and payment, says Keith Snavely, senior vice president, global sales with nVision Global Technology Solutions. “As shippers are challenged to do more with less, freight audit providers are helping them reduce supply chain costs,” he adds.

The importance of these efforts has become more apparent over the past few years. “The supply chain is of significant interest because there is so much expense typically associated with it,” says Jeff Carlson, vice president of global sales and marketing with Cass Information Systems. Freight bill audit and payment companies can play a significant role in helping to rein in these costs.

As they do, some FBAP companies are transitioning to the term “transportation spend management.”

“We don’t think the term ‘freight bill audit and payment’ will go away, but it’s a myopic name for the solution, when there’s so much more to it, especially the data,” says Melia Cothran, director of marketing, also with Cass.

The value of the data assembled during freight audits can be seen in clients’ growing requirements for greater data analysis and business intelligence that’s reported in real time, often through tools like dashboards and using key performance indicators, or KPIs, says Allan J. Miner, chief executive officer with CT Logistics.

The desire for data and analysis also reflects companies’ need not only for savings—which remains key—but for the insight that will help them take intelligent correction action, says Vikki L. Van Vliet, senior vice president of sales and marketing with Trans Audit.

Globalization Grows

Another shift is the growing focus on capabilities that cross national boundaries. “Over the past year, we’ve seen more shippers looking for services that are global in nature,” Van Vliet says.

Demand for a comprehensive logistics solutions provider is also increasing, says Elizabeth Nolan, vice president of contracts and compliance, CTSI-Global.

Shippers are looking for providers that integrate data, the user experience, and visibility within a single platform.
Supply chain challenges have shifted over the past few years from port congestion and material shortages to increased costs and staff shortages. With so many factors at play, having a logistics partner that can reduce transportation costs and increase visibility in the supply chain is vital.

FBAP Providers Meet a Changing World

Since 2020, the sudden increase in direct-to-consumer shipments is continuing to drive growth in parcel deliveries. Partnering with a freight bill audit firm that offers parcel management is crucial to streamlining processes, Nolan says.

The cost of financing in today’s environment of rising interest rates, inflation, and fears of recession is of concern for all parties in the supply chain.

“It could have repercussions in our industry by impacting contract terms between shippers and carriers,” says Scott Burglechner, senior vice president and head of freight payment product management with U.S. Bank.

Additionally, the void created by the retirements of many experienced traffic and transportation managers has left a knowledge gap in many companies, Miner says. The upside for freight audit providers is that many of these companies will need their services.

As the logistics and supply chain functions change, so do FBAP providers. The importance of technology continues to grow.

This includes emerging technology like artificial intelligence (AI). “Freight bill providers and their clients have to remain diligent and aware of how AI can impact the market,” says Peter Kerwin, head of audit operations with Trans Audit. “AI is taking over everything we do.”

The growing role of technology is also prompting structural changes. A number of acquisitions occurred in 2022, resulting in a consolidation of service providers.

“The majority of FBAP services are now performed in association with other transportation or financial technology (fintech) offerings,” says Scott Matthews, president, freight audit and payment, AFS Logistics.

Other changes include the bankruptcy of Yellow Corporation and the new contract reached between UPS and its drivers. “In the short term, these might offer an opportunity for slightly more attractive parcel rates, as other carriers try to increase their business,” says Nick Fisher, director of sales and partnerships with ARTC Logistics. Within a year, however, it’s likely rates will increase again.

The data assembled during freight audits has become more valuable, with clients seeking greater data analysis and business intelligence reported in real time, often using key performance indicators (KPIs) and through tools such as dashboards.

The Future of the FBAP Sector

Looking ahead, it’s probable the number of freight bill providers will continue to shrink. Some providers that struggle to find the resources needed to invest in technology probably will leave the industry, whether by selling themselves off to another company or simply closing their doors, Carlson says. Conversely, the large ones likely will get larger.

There has also been considerable activity around sustainability and how advanced analytics solutions that leverage FBAP data can support reporting and inform decision-making related to climate impacts, Burglechner says.

Even as the FBAP industry continues to consolidate, both providers and clients will look for technology and services that go beyond simply processing and paying invoices, to encompass strategies that help shippers better manage their transportation spend, Snavely says.

The companies featured here are leading this change.

A3 Freight Payment: Customized Transportation Spend Management Delivers Superior Returns

A3 Freight Payment, which recently was recognized as one of the Inc. 500 Fastest Growing Companies, focuses on delivering value to its clients through customized, quality spend management.

“Freight bill audit and payment has become a tactical function,” says Craig Cameron, VP of sales and marketing. “A3 adds value for clients by pursuing savings and identifying spend management opportunities from within their supply chains,” he adds.

To that end, A3’s experienced team conducts in-depth analyses of clients’ freight invoices to help them reduce expenses and increase efficiency. They evaluate routes, freight class, modes, and carriers, among other factors.

Their comprehensive analyses provide insight into shippers’ freight operations, support more effective business decisions, and identify strategic changes that can lower expenses, streamline operations, and boost profitability. By using data from shippers’ transportation costs and payments, A3’s spend analytics services help them avoid overpaying in the future.

“Freight bill audit and payment has become a tactical function. We add value for clients by pursuing savings and identifying spend management opportunities from within their supply chains.”

Craig Cameron
VP Sales & Marketing
A3 Freight Payment

Finding Savings Opportunities

A3 leverages scenario modeling and the statistical analysis capabilities found in artificial intelligence to quantify and identify trends, as well as small, but costly anomalies, like inaccurate oversized charges on parcels.

“Even if there aren’t many of these charges, the dollar amount of savings opportunities can be sizable,” Cameron says. As important, shippers often can achieve the savings with minimal effort. “You get a lot of bang for the buck,” he says.

Once a shipper is an established client of a freight audit provider, ongoing savings on the audit itself generally are around one-half of 1%, Cameron says. The reason it’s generally not higher? The audit provider should be correcting errors, so more transactions proceed accurately and savings from mistakes decline over time. Of course, transportation costs should also decline.

It’s on the spend management side—where A3 focuses—that the savings opportunities can be significant, Cameron says. “We find and highlight operational problems, like expedited shipments that don’t need to be expedited, or poor carrier selection,” he says. When these are addressed, the savings can range from about 5% to as high as 20% of freight spend, he adds.

Another unique feature of A3 is its bankruptcy remote structure.

This provides clients an additional layer of protection, in the unlikely event A3 should run into financial problems.

As shippers increasingly look for enhanced services and added value from their FBAP providers, A3 Freight Payment continues to meet their needs. “Our direction and focus are on using freight data to help companies identify and leverage opportunities for cost savings and efficiencies,” Cameron says.

AFS Logistics: Data-Driven, Time-Tested Logistics Expertise

Now in its fifth decade, AFS Logistics has expanded from one location in Shreveport, Louisiana, to eight locations in North America. It manages more than $11 billion in freight spend and helps more than 1,800 clients across 35 countries save more than $180 million from their annual transportation expenses.

In 2023, for the fourth time, AFS Logistics was added to the Inc. 5000 list, a recognition that it remains one of the country’s fastest-growing private companies. Its growth is a result of both organic client growth and acquisitions, says Scott Matthews, president, freight audit and payment.

Even as it has grown, AFS retains the flexibility to support small shippers, global enterprise organizations, and most companies in between. Its client list spans consumer packaged goods companies, retail and ecommerce firms, medical and healthcare enterprises, and consumer electronics companies, among others.

“We provide scalable freight bill audit and payment services with the flexibility to handle everything,” Matthews says.

AFS’ audit process typically identifies errors that account for up to 8% of clients’ transportation expenses, Matthews says. The mode of transportation and audit rules established by the client may impact what an individual client may observe, he adds.

“We provide scalable freight bill audit and payment services with the flexibility to handle everything.”

Scott Matthews
President, Freight Audit and Payment
AFS Logistics

Establishing a Continuous Improvement Process

AFS partnered with a large consumer electronics and technology client that has significant global transportation spending, as well as complex business rules, coding logic, and match payment criteria.

AFS established a continuous improvement process, including identifying and prioritizing transaction types that were falling into exceptions and required manual interventions.

AFS then worked with the company and its carriers to define the root causes of the process failures, and then implemented corrective action to prevent future transactions from moving into exceptions. “This improved the first pass process yield and the invoice audit cycle time,” Matthews says.

AFS will continue to grow both organically and through acquisitions, Matthews says. “The acquisitions provide access to a greater volume of market data that can be leveraged to the benefit of our clients, while continued investments in our AFSmart technology suite ensures that cutting-edge solutions remain as a foundation to provide excellence in client deliverables,” he says.

ARTC Logistics: Trustworthy and Transparent

ARTC Logistics, formerly AR Traffic Consultants, brings more than five decades of transportation experience and expertise, as well as a proprietary suite of technology tools to help its clients manage their freight expense.

The company’s flagship software, CalcRate, streamlines shipping processes and reduces shippers’ costs by storing all its clients’ carrier rates and supporting carrier selection information. It also provides rating and freight audit/payment and tracking functions.

ARTC Logistics’ CalcRate Shipping Portal combines all elements of the company’s other products, including rate shopping, carrier selection, load tendering, shipment rating, advance ship notification, and tracking and reporting functions. Shippers can easily use all products from one site.

Over the past year, more shippers have focused on managing their inbound freight spend, says Nick Fisher, director of sales and partnerships. However, they typically don’t control these shipments, which are tendered by their vendors, he adds.

To help manage this expense, ARTC’s Vendor Portal enables them to easily let their vendors know which carriers they should use.

“The vendors can use it to access open orders for their customers (ARTC’s shipper clients) and then the portal will automatically select the appropriate carrier and tender the load,” Fisher says.

The Vendor Portal also provides advance shipment notices (ASNs) so shippers can track shipments and immediately account for freight costs, he adds.

ARTC Logistics studied the inbound routing expense for a long-term client. The analysis revealed that vendors were misrouting when shipping collect to the company, with the extra costs totaling about $20,000 per month.

Based on this information, and to minimize the likelihood of future overcharges, the client decided to use the inbound routing portal.

“When it comes to freight payment and audit, having access to the stored contracted rates will allow you to be more effective in auditing the freight bill.”

Nick Fisher
Director, Sales and Partnerships
ARTC Logistics

Conducting In-Depth Analyses

Shippers looking for in-depth analyses of their freight expense can work with ARTC Logistics to conduct a range of studies.

These include analyses of routing compliance to identify shipments that weren’t tendered to the shipper’s preferred carrier; carrier report cards to measure on-time performance; evaluations of LTL and truckload shipments to determine those that can be combined into multi-stop, multi-origin truckload shipments; and inventory supply point studies to determine the most cost-effective sourcing locations.

To ensure carriers are charging ARTC’s clients the amounts to which both parties agreed, ARTC enters the contractual amounts within its own database. This runs counter to some organizations, who rely on accessing carriers’ rates in real time.

“There are some advantages to getting the rates in real time when you’re rate shopping for load planning,” Fisher says. “However, when it comes to freight payment and audit, having access to the stored contracted rates will allow you to be more effective in auditing the freight bill,” he adds.

By continually working with its customers and their carriers, and maintaining ongoing investments in technology, ARTC Logistics is helping its shipper clients more effectively compare and contrast shipping options.

Cass Information Systems Inc.: Expense Management Expertise

Cass Information Systems leverages its more than six decades in the freight audit business to move beyond traditional freight audit and payment and provide transportation spend management.

“Audit and paying freight bills remain our foundation, but we also offer other services that can help both shippers and carriers,” says Jeff Carlson, vice president of global sales and marketing.

An example is the Cass Financial Suite®, which offers unique working capital programs to benefit both shippers and carriers.

Through the Cass Trade Finance Network™, in which Cass acts as an intermediary between shippers and carriers, shippers can support a low-cost early payment program to help carriers optimize cash flow in the wake of payment terms extensions.

While other quick payment solutions can be found, they typically don’t involve the shipper and are expensive for the carriers, says Melia Cothran, director of marketing.

Each year, Cass’s 1,300-plus employees manage more than $90 billion in disbursements, and process and pay 50 million invoices covering transactions that span 185 countries and 114 currencies. “A major differentiator for us is the fact that we’re global across all modes,” Carlson says.

One Cass client is a shipper operating in 100 countries and producing 300,000 products. Management needed to roll up the company’s global, multi-modal freight data into one platform to gain global visibility to freight movement and costs.

“It was a monumental undertaking because they had been very decentralized and had numerous other ERP and TMS systems to integrate with,” Cothran says. Working with Cass, the company rolled out a global freight payment program by region. Cass handled the onboarding of ocean, air, and parcel carriers.

Since going live, the company has enjoyed savings of 1 to 5% of its transportation costs; the exact rate varies with the transportation mode, the carrier, and the region of the world. The company has gained global and regional views of its shipments, costs, carriers, and other information. It has also been able to execute master global freight rate agreements, further driving savings and simplifying rate management.

“A major differentiator for us is the fact that we’re global across all modes. We’re seeing growth because we’re evolving with our customers.”

Jeff Carlson
VP Global Sales and Marketing
Cass Information Systems Inc.

Securing Transactions

Cass Commercial Bank, a wholly owned subsidiary, offers Cass clients confidence that their payment transactions are secure, audited, and regulated. As a public company, Cass’s financial and corporate information is readily available and shippers can be confident Cass employs the controls needed to protect their funds. Its sophisticated financial exchange capabilities provide additional benefits, such as precisely timed payments to carriers.

And, the team at Cass continues to drive forward. It’s investing heavily in artificial intelligence and machine learning. “It makes us more efficient and smarter, which in turn makes our shippers and carriers more efficient and smarter,” Carlson says. “We’re seeing growth because we’re evolving with our customers,” he adds.

CT Logistics: 100 Years of Freight Audit Services

Few companies survive to celebrate a century in business. CT Logistics can claim membership in this impressive group.

From its headquarters in Cleveland, Ohio, and regional offices in the United Kingdom and around the world, CT Logistics serves small firms and global enterprises. “Our global locations are essential for understanding and best serving international clients,” says Allan J. Miner, chief executive officer.

At the core of CT Logistics’ success is its history and expertise in the freight bill audit and payment niche. “The real thrust of FBAP business today is actionable, real-time information that shippers receive via the web or create from their FBAP provider’s website,” Miner says. CT Logistics’ sophisticated reporting tools allow clients to easily view graphics, generate pivot tables, and email reports on a scheduled basis, among other capabilities.

CT Logistics employs web services to help its clients streamline the exchange of information, and to obtain management information and reporting. In addition, CT Logistics offers an experienced team of logistics professionals that provide value-added consulting and project management for spend analyses for benchmarking and cost comparisons, Miner says.

Even after a century of success, CT Logistics continues to innovate. To enable shippers to make more informed decisions, many of its offerings are focused on predictive analytics. “Our Qlik® powered reporting system allows clients to create or drill down into any field or data element in any report 24/7,” Miner says. These interactive data visualizations enable clients to more easily identify performance issues and apply corrective actions immediately, he adds.

“The real thrust of FBAP business today is actionable, real-time information that shippers receive via the web or create from their FBAP provider’s website.”

Allan J. Miner
Chief Executive Officer
CT Logistics

Enabling Visibility

When CT Logistics begins to work with a new client, typical freight bill savings tend to run approximately 3 to 7% of freight spend, Miner says. While these savings are clearly important, “the more intangible, but invaluable savings for shippers come with visibility to their shipping data and the predictive analytics that’s possible because of all the data captured,” he adds.

CT Logistics worked with one of the largest and most widely respected technology companies in the world. Prior to this partnership, the company was operating within a decentralized structure, and its business processes were managed on a regionalized basis. The company had only limited—and in some cases, no visibility—to its global transportation spend.

CT Logistics, working from its offices in the United States and the U.K., partnered with the company to deliver a global transportation invoice validation and visibility solution across 41 countries, dozens of currencies, and hundreds of millions of dollars of transportation spend.

“The solution dramatically improved their global logistics and supply chain groups, delivering centralized control, standardized processes, and a global database and repository of shipment activity by country and region,” Miner says. The two companies recently signed another multi-year agreement.

As this example shows, CT is continuously expanding its universe of value-added products and services up and down the supply chain, to provide the visibility and data capture that can help companies make more informed decisions and boost performance.

What’s more, CT Logistics is not done yet. “We continue to expand beyond the core FBAP services to meet the needs of our clients and the market,” Miner says.

CTSI-Global: Logistics Technology and Intelligence

CTSI-Global offers its clients freight audit and TMS solutions across all modes of transportation, industries, and carriers, both domestic and international.

Its world-class technology, refined over decades, fully automates audits for all duplicate, rate, discount, ancillary, and performance metrics. “Because our solutions are fully customizable, we can address logistics needs for any size or type of company,” says Elizabeth Nolan, vice president of contracts and compliance.

Every year, CTSI-Global processes more than 2 billion freight transactions, totaling more than $15 billion in freight dollars.

By leveraging this experience and knowledge, CTSI-Global can catch freight invoice errors that would otherwise go undetected. And because it has personnel in multiple countries, CTSI-Global understands the languages, customs, regulations, and complexities of global business.

Along with saving clients money by identifying carrier overcharges and duplicate billing, CTSI-Global can handle shippers’ freight payment functions, freeing shippers’ employees for other responsibilities, Nolan says.

“Insight from our business intelligence tools is invaluable. It can be used for increased efficiencies and forecasting.”

Elizabeth Nolan
VP Contracts and Compliance
CTSI-Global

Providing Supply Chain Insights

CTSI-Global’s robust Business Intelligence tools can be used to create dynamic reporting, drawing on freight data received from both carriers and shippers. Clients have full transparency into carrier rates, coding logic, and invoices. “This insight is invaluable. It can be used for increased efficiencies and forecasting,” Nolan says.

By leveraging its extensive experience designing customized coding techniques, CTSI-Global can accommodate virtually any request and allocate costs by a range of criteria. In addition, the experts at CTSI-Global review all billing exceptions to modify, reject, or approve them for payment processing—with audit and cost allocation requirements customized to meet each shipper’s needs, Nolan says.

CTSI-Global recently earned the distinction as a Top 25 Regional Supplier to a global technology manufacturer and member of the Fortune 500. They were chosen from about 12,000 supplier candidates.

Even as it earns accolades, CTSI-Global is improving and expanding its offerings to address the ever-evolving needs of its clients. Among other capabilities, CTSI-Global’s Parcel Management solution validates global addresses, prints labels, and tracks shipments with predictive analytics, Nolan says.

CTSI-Global also is taking steps to reduce its environmental impact and that of its clients. “So far this year, the company’s global headquarters has increased energy generated from sustainable sources by 25%,” Nolan says.

“Additionally, we are adding new sustainability management tools for our clients to help them meet sustainable development goals for the three pillars of economy, society, and the environment.”

Fortigo: Leveraging Automation to Optimize Your Supply Chain

For more than 20 years, Fortigo has pioneered the one system—any shipment transportation management system (TMS) and freight audit solution. By marrying its TMS and its freight audit and payment (FAP) service in a closed-loop ecosystem, Fortigo can offer its clients maximum visibility and hard-dollar savings.

Historically, TMS solutions have been geared to a specific geography. Shippers who operated in different regions of the world would need to work with multiple systems, and often lacked macro visibility into their global operation.

Through its cloud-based TMS, Fortigo can cover any shipment, any mode, and any geography. The solution also removes limits on the number of carriers, rates, or shipping data, so companies can maximize efficient shipping both regionally and globally, a step towards complete transportation network optimization.

They can also rely on one system of record for full visibility into their global supply chain. Similarly, Fortigo’s freight audit system can pay carriers in any geography and with any currency.

Pairing Fortigo’s freight audit service and TMS in a single, closed-loop system means shippers gain access to thousands of carriers and are able to enforce business rules and easily identify incorrect charge codes throughout the shipment process. This can compound savings for customers, while providing maximum visibility, cutting costs, and improving overall supply chain efficiencies.

“Fortigo’s one-stop system offers a proven track record of transportation savings and provides features that simplify all aspects of a global, enterprise supply chain.”

George Kontoravdis
Founder and President
Fortigo

Logistics Technology—On Demand

On-Demand logistics technology enables companies to deploy Fortigo’s solutions in less than six weeks thanks to minimal IT resource requirements. Fortigo’s TMS and freight audit solutions are trusted by large, multinational companies with complex constraints and global shipping across all geographies, using multiple modes of transportation. Their customers include the world’s largest airlines.

Fortigo’s freight audit service eliminates overcharging and identifies incorrect charges based on multiple criteria, including carrier service level agreement, negotiated rate sheets, and volume discounts.

Fortigo also guarantees the accuracy of its freight audit process—an industry first feature that customers love. Through its expansive investment in data security, Fortigo safeguards all customer data.

In mid-2022, Fortigo was named an inaugural FedEx Certified Freight Bill Audit and Pay (FBAP) provider. Fortigo once again received this prestigious certificate in 2023. Additionally, Fortigo is the only multimodal TMS provider that is also a certified FBAP provider by FedEx for both parcel and freight (LTL).

To adapt to the changing logistics environment, Fortigo continues to expand its offerings. Over the past year, it has added more than 80 new features and enhancements, such as integrations with quote-based carriers and cargo airlines, to its solution.

First-year savings for customers switching from manual processes to Fortigo’s freight audit solution can range from 7 to 12%. Established customers typically see annual savings ranging from about 1 to 5%, with the exact rate depending on the volume of shipping and complexity of their transportation network. Fortigo is a value-add solution with customers seeing return on investment on day one of activation.

From the early days, the team opted to grow organically and focus on delivering customer-oriented solutions. This past July, Fortigo announced the opening of a new operations center in Greece.

The new team will include supply chain and software development experts and is expected to double in size over the next two years.

“As demand for cloud-based supply chain solutions rapidly grows in Europe, we are excited to expand our presence,” Founder and President George Kontoravdis said in a statement.

The new operations center will tap into the highly educated and experienced local talent pool, Kontoravdis added.

nVision Global Technology Solutions, Inc.: Complete and Global Freight Management

“It’s often said that today’s differentiating features are tomorrow’s minimum expectations,” says Keith Snavely, senior vice president, global sales. With that in mind, nVision Global is preparing for this shift through its ability to provide extensive data capture, to clean and normalize data, and to offer strong analytical tools.

“Our nSight Global Freight Management Analytics Tool is a robust, evolving solution featuring hundreds of key performance indicators with thousands of variations that allow the user to streamline and optimize their global supply chains,” he says.

Over the next few years, nVision Global will build on its success by partnering with its clients and acting as an extension of their logistics and accounting departments, and providing a one-stop, all-inclusive freight audit, payment, and transportation spend management solution. This will encompass several systems.

One is nVision’s Global Payment Solutions. With the onset of the Sarbanes-Oxley Act and as transportation expenditures receive closer scrutiny, companies are looking to partner with a single-source provider that can provide payment solutions on a global scale, Snavely says. “nVision Global has seven corporate-owned, strategically placed, full-service processing centers on three continents to accommodate our customers globally, as well as meet their regional requirements,” he says.

In addition, nVision Global will continue to evaluate customers’ global needs and open additional centers as needed to meet them.

“As shippers are challenged to do more with less, freight audit providers are helping them reduce supply chain costs.”

Keith Snavely
SVP Global Sales
nVision Global Technology Solutions, Inc.

Expanding Capabilities

nVision is also working to maintain its edge in transportation spend management, building on its extensive, internet-based information analytical tools, as well as its data cleansing/normalization and harmonization processes. These initiatives will add greater value to shippers’ data analysis, Snavely says.

Additionally, as companies need to do more with less, nVision’s clients have come to rely on the company’s analytical tools to help them optimize and streamline their overall supply chains.

Along with global mapping, trending, benchmarking, ad-hoc report writing, and other capabilities, nVision Global continues to expand its nSight Global Freight Management Analytics Tool.

By building on its transportation management services and solutions, nVision Global is moving beyond simply processing and paying invoices and capitalizing on the extensive operational business intelligence (OBI) captured from clients’ freight invoices.

nVision helped a leading supplier of automatic test equipment and interconnection systems to efficiently manage global freight invoices for transportation providers across multiple countries and currencies. To accomplish this, nVision designed a global solution that allowed the company to roll up each division’s total transportation spending into one global database, providing worldwide visibility in a real-time environment.

This capability enabled the company to cut its pool of suppliers to a more manageable number, while continuing to serve its customers. It also achieved savings through the freight invoice audit, as well as reduced internal administrative costs and transport costs.

“Through the utilization of nVision’s web-based applications, the company is able to realize year-over-year savings, supply chain efficiencies, and productivity gains,” Snavely says. “We strive to accomplish this for all our customers.”

U.S. Bank Freight Payment: Freight Audit and Payment Made Easy

As a full-service, federally regulated financial institution and provider of FBAP services, U.S. Bank focuses on technology, security, and reliability while delivering solutions that satisfy clients’ needs. Data dashboards, analytics, and self-service capabilities, which the bank co-creates with its clients, remain areas of focus as well.

“We have multi-year investments in technology and data analytics to provide actionable insights that will help our customers improve their operations,” says Scott Burglechner, senior vice president and head of freight payment product management. Depending on a shipper’s current FBAP operation or methodology, savings in the first year can be up to 10%, he says.

“U.S. Bank’s FBAP platform enables shippers to deliver dependable and predictable payments to carriers and helps resolve exceptions quickly and reduce errors by collaborating online, in real time.”

Scott Burglechner
SVP & Head of Freight Payment Product Management
U.S. Bank

Enhancing Shippers’ Working Capital

In today’s uncertain economic environment, an increasingly important differentiator is U.S. Bank’s ability to help shippers enhance their working capital by extending transportation freight payments to 60 or 90 days, or even longer, without having to renegotiate contracts, Burglechner says.

At the same time, U.S. Bank provides carriers accelerated payment options to meet their cash flow needs.

The FBAP platform U.S. Bank has developed provides end-to-end visibility for both shippers and carriers. “The platform enables shippers to deliver dependable and predictable payments to carriers and helps resolve exceptions quickly and reduce errors by collaborating online, in real time,” Burglechner says.

As a result, shippers can focus on collaborating for strategic supply chain improvements, instead of spending time resolving invoice and payment disputes.

Within its world-class, Tier IV data center, which offers one of the most reliable, fault-tolerant, and secure environments available, U.S. Bank employs segregated builds to prevent co-mingling of customer data. “We also safeguard sensitive supply chain data to help protect partners and suppliers from cybercrime,” Burglechner says.

A large apparel retailer set a goal of reducing costs by millions of dollars, and needed a trusted partner to provide a reliable, efficient, and sustainable FBAP process that featured robust reporting and strategic business intelligence. U.S. Bank’s small parcel tool provided an audit program to identify savings opportunities across millions of packages per year; it also offered insights on delivery service and mode selection that provided additional savings. In the first year alone, the retailer’s savings topped 50% of its initial 10-year savings goal.

U.S. Bank Freight Payment will continue to invest in products, services, and solutions that make clients’ lives easier, including automation, APIs, faster payments, and advanced analytics solutions for more forward-looking decision making.

It will also continue to make it easier to audit and approve transportation expenses when it is important to conduct a manual review of the invoice prior to payment. And as part of the larger U.S. Bank enterprise, FBAP services will continue to benefit from investments and innovations in cloud computing, AI, security, reliability, payments, and sustainability solutions for customers, Burglechner says.

Choosing the Right Provider: 10 Questions

The following questions can help you determine if a freight bill audit and payment provider is the right fit for your organization.

1) Do the provider’s capabilities and technology investments line up not only with your organization’s needs today, but its likely needs five or 10 years from now?

2) Can the company help you improve your FBAP processes?

“Companies should expect recommendations from a trusted FBAP provider that can improve transportation expense control, increase automation with quality data and intelligent automation, and provide greater working capital,” says Burglechner from U.S. Bank.

In contrast, the short payment model, which is common in the FBAP space, allows problems to continue, says Craig Cameron, VP of sales and marketing, A3 Freight Payment. Say the audit detects an error of $50, and the provider short pays the carrier by $50 and then lets the carrier know the reason for the short payment. However, this information often doesn’t get to the correct person. So, the carrier’s system continues to bill for the $50. “To truly fix the problem, you need a front-end resolution process,” he says.

3) How does the provider store freight rates?

A growing trend among shippers and logistics companies is to access carrier rates in real time, says ARTC Logistics’ Fisher. While this can offer some advantages, it comes with a significant disadvantage: Real-time rates won’t necessarily match the rate in your contract. For example, the freight bill says a shipment cost $1,000, and when the shipper checks the carrier’s website, it also shows $1,000. However, if the contract has a rate of $900, the shipper likely will overpay without realizing it.

4) How strong are the provider’s relationships with carriers?

“Shippers rely on carriers to move freight,” says Dani Funk Heimsoth, senior director of development, Trans Audit. “You (and your audit provider) need to maintain healthy relationships with them to ensure the process runs smoothly.”

5) What steps has the company taken to ensure its processes and controls are secure and effective?

FBAP providers should have complete policies for information security and network security, including data segmentation measures as well as standards for disaster recovery, incident response, change management, and physical security, says CTSI-Global’s Nolan.

You also want to look for current externally audited financial statements, as well as a fidelity bond and cybersecurity protections and insurance, Cameron says. (Fidelity bonds protect against losses caused by someone else’s acts, such as acts of forgery or fraud.)

In addition, freight bills contain reams of valuable information about supply chains. “The company should have established processes and procedures in place to ensure online security and maintain the integrity of trusted transactions,” Burglechner says.

6) Does the firm offer both flexibility and scalability?

“Ideally, the firm will have expertise, the resources needed to regularly upgrade its technology, and the agility to respond quickly to clients’ needs,” says Matthews from AFS Logistics.

7) Will the provider offer a list of client references?

“Also ask for the tenure of the provider’s top 20 clients, as well as its client termination rate over the prior year,” Matthews says.

8) How long has the company been in the core FBAP business?

Some history suggests it will have staying power.

9) What expertise does the provider have in handling the growing volume of regulatory requirements from governments and clients?

Companies need to evaluate and adapt to shifting requirements, such as those focused on SOC, data protection, and ESG reporting, Nolan says.

10) Does it have full-time resources in the regions, time zones, and languages in which your company has transportation activity?

This can streamline communication and problem solving, nVision’s Snavely says. Similarly, in-country accounts can help in providing efficient and cost-effective remittance to transportation providers, he adds.

How AI Will Transform the Freight Payment Market

By Hannah Testani, CEO, Intelligent Audit

Unlocking artificial intelligence’s vast potential starts with impeccably cleaned, labeled, and indexed data. Without this bedrock of standardized and reliable datasets, even the most advanced AI can fall flat.

When evaluating FBAP providers, shippers should prioritize providers who are deeply committed to data normalization, cleansing, and meticulous labeling. Only then can they be assured of data that’s not just formatted but fine-tuned for immediate, insightful action.

Forging Strong Relationships with Carriers

The vitality of fostering and sustaining deep, respectful relationships with carriers transcends mere advice—it’s a non-negotiable foundation for our operation’s continued success. These fortified relationships not only pave the way for advantageous negotiations and bolstered trust but also lay the groundwork for collective problem-solving.

The synergy between shippers and carriers underpins our operational success, and trust is its cornerstone. But trust doesn’t magically appear—it must be deliberately cultivated. At Intelligent Audit, our approach to building trust is anchored in transparency. Leveraging our extensive experience, we’ve honed assets such as our logistics network optimization suite, advanced business intelligence tools, and cloud-enabled carrier payments.

How Intelligent Audit Approaches the FBAP Market

At Intelligent Audit, our primary mission is to empower our customers, transforming them into more impactful and influential players in their industries. Our foundation is built on a robust technology-first ethos, allowing us not only to scale rapidly but also to furnish our diverse clientele—from startups to industry titans—with sophisticated analytics. This empowers them to derive invaluable insights and make decisions that significantly bolster their bottom lines.

In the complex realm of FBAP, what sets us apart is our profound understanding of our shippers’ nuances. While many navigate their operations using standard KPIs like cost per mile or shipment, these traditional yardsticks, especially for heavy spenders in transportation, often overlook subtle data anomalies. Our challenge, and indeed our strength, lies in harmonizing these KPIs with the intricate nuances of expansive shipping operations.

Acknowledging that no single team can master the full operations of a vast shipper, we’ve embraced advancements in computerized intelligence. Our proprietary machine learning algorithms are engineered with an acute sensitivity, designed to spot even the slightest deviations in massive datasets, ensuring comprehensive oversight for even the most extensive shippers.

But data alone doesn’t tell the entire story. The vastness of many shippers’ transportation networks means variations are par for the course. Here, the true magic happens when industry expertise marries technological innovation. At Intelligent Audit, this union is our cornerstone. By intertwining our machine learning prowess with decades of FBAP experience, we confidently discern any dataset variations that raise red flags.

Our proactive approach goes beyond mere detection. We prioritize alerting our shippers about these anomalies at lightning speed, allowing them swift rectification. A testament to our capability is our detection of a discrepancy where shipment weights were erroneously logged in a European format, preventing a client from incurring substantial unwarranted charges.

Yet, our commitment is holistic. Leveraging our advanced platform and unmatched expertise in data normalization, coupled with our innovative analytics and visualization tools, we ensure shippers are primed for rapid, results-driven decision-making.

Gain Peace of Mind with a Post-Payment Audit

Utilizing the latest data security measures and emerging technologies, Trans Audit performs transportation post-payment audits for hundreds of Fortune and Global 1000 corporations worldwide across every industry.

Recovering overbillings and overpayments addressing all modes of transportation and all payment points, Trans Audit has delivered more than $1 billion in benefits to its Clients.

“As a privately held company solely focused on post audit, Trans Audit is Client-centric and provides a holistic approach,” says Vikki Van Vliet, senior vice president of sales and marketing with Trans Audit. This experience is simple, swift, and straightforward from onboarding through claims resolution.

A crucial component of the onboarding process is data ascertainment. Clients either process their transportation payments internally, or they employ a freight audit and payment provider (FAP). Trans Audit works with a large number of Clients that process their data both internally and with virtually all FAPs, creating a strong knowledge base for a variety of payment platforms.

Clients find the post audit process complements the pre-audit and payment process, whether outsourced or internal. “Our onboarding process is refined, requiring minimal Client resources at the onset, as well as for the ongoing support of the post audit,” says Dani Funk Heimsoth, senior director of development.

Positive relationships with carriers are extremely important to the post audit process. Shippers rely on carriers to move freight. Healthy relationships with carriers must be maintained by shippers and their post audit provider to ensure the process runs smoothly.

Carriers have described Trans Audit’s claim filings and refund process as “clear, concise, and complete,” Funk Heimsoth says. According to Funk Heimsoth, “Carrier feedback touts Trans Audit as the largest post audit provider submitting more claims and ascertaining more refunds in the industry.”

Analytics and metrics are critical aspects of any audit process. Trans Audit’s proprietary technology platforms are crucial to its ability to efficiently and effectively perform post-payment audits around the world. “The desire on the part of many shippers for data and analytics reflects their need not only for recouping overpayments and overbillings which remains key, but for the insight that will help them take intelligent corrective action,” says Van Vliet. Trans Audit’s cloud-based technology TransPortal+™ driven by Microsoft Power BI provides interactive dashboards and analytics on claims and refunds for its Clients.

Staying at the forefront of the industry, Trans Audit looks to continuously improve its offering through emerging technologies like artificial intelligence (AI). “Transportation providers and their Clients must remain diligent and aware of how AI can impact the market,” says Peter Kerwin, head of audit operations. “The integrity and protection of Clients’ data is of the utmost importance to Trans Audit, and thus Trans Audit employs the latest security protocols for all Client data.”

With a keen emphasis on the end-to-end management of the entire post audit process, Trans Audit does not outsource any element of its services, provides its Clients with analytics and insight, and monetary benefits, with an intense focus on technology and security, giving their Clients peace of mind™.

When to Engage an FBAP Provider

How large does a company’s transportation spend need to be before engaging a freight bill provider makes sense? While no single number will apply to all organizations, it’s possible to draw a few guidelines.

An FBAP provider tends to start making sense when shippers are spending about $500,000 annually on freight. “At this point, inefficiencies in back-office process exist and an FBAP service provider can automate the process and lessen the cost for the shipper,” Matthews says.

Looking at shipment volume, a shipper with more than about 30,000 shipments annually will typically realize economic benefits by outsourcing freight audit, Snavely says.

These include freeing internal resources from handling this function, enhanced data capture, and automated general ledger account coding, among others. In addition, the shipper will gain access to the freight bill provider’s technology and services, such as rate negotiation preparation and transportation management solutions.

Instead of spending time resolving invoice and payment disputes, shippers can focus on strategic supply chain improvements with freight bill audit and payment platforms.

With ocean shipping and detention charges increasing exponentially, better control and in-depth analysis of these charges is a necessity and simultaneously a challenge.

Complicating the issue, detailed data and resources to analyze detention and other ocean accessorials must be ascertained and allocated to facilitate a thorough review of these growing costs. Without a transportation post audit in place, companies do not possess the controls nor the time to better manage carrier overbillings and overpayments, regardless of source, nor do they have the business intelligence and processes to ascertain refunds and correct these recurring errors.

Shipping disruptions that arose during the pandemic made the situation even worse.

Interestingly, the top five most expensive global ports for detention and demurrage fees on cargo containers are all in the United States, where such charges have steadily increased in recent years. Even with the Ocean Shipping Reform Act of 2022 in place, overbillings can still be significant.

THE SOLUTION

Many of Trans Audit’s clients face similar challenges and have turned to Trans Audit for post payment transportation expense recovery services to analyze global transportation expenses and recoup overbillings and overpayments.

One example, a Fortune 200 multinational automotive manufacturing and supply company, was the beneficiary of these services. Never working with a post audit provider in the past, this world renowned company teamed up with Trans Audit, the world’s largest and most successful global transportation post payment audit specialist.

In its 40-plus year history, Trans Audit has performed audits for hundreds of Fortune and Global 1000 corporations. Trans Audit’s global audit capabilities address all modes of transportation and associated charges, providing a ubiquitous solution.

Trans Audit’s approach synthesizes a holistic, comprehensive audit for 1) payment-related errors, such as payment ownership, accuracy, currency, duplicates, and many others, 2) contractual compliance, i.e. discounts, rates and accessorial charges including detention and demurrage, as well as the plethora of other accessorial charges, and 3) logistical analysis, taking the audit beyond what most internal or other outsourced audits offer.

Trans Audit’s logistical analysis scrutinizes shipping and payment information to ensure that not only was a charge billed according to the shipper’s contract, but that the charge was truly applicable and recurring error trends are identified.

THE RESULT

Trans Audit’s subject matter modal experts (SMMEs) filed over $4,000,000 in claims and recovered over $3,000,000 in one year for this client. Recoveries primarily resulted from ocean detention, but also included payment, rate, and other accessorial charge errors.

Trans Audit provided pertinent claim details and guidance to assist the client with corrective actions via TransPortal+, driven by Microsoft Power BI. Trans Audit’s clients benefit from its compelling advantages in terms of intuitive and interactive dashboards and vital metrics in real time in one place.

The intelligence provided by Trans Audit has enabled this client to modify processes, and better control and reduce its detention costs, providing value far above and beyond the refunds themselves. This approach demonstrates Trans Audit’s belief that a post audit should deliver more than just monetary benefits, and more importantly, provide continuous improvement insight into its clients’ payment processes and supplier relations. www.transaudit.com

When it comes to carrier selection for freight, shippers have control of their outbound shipments, using parameters like cost, transit time, dependability, and history of claims to make the optimal choice.

Inbound freight is a different story with vendors selecting the carriers, often based on their own preferences, which may or may not align with those of the consignee. Our client has been generating inbound routing guides for their vendors based on shipment weight, origin, and our client’s inbound warehouse.

Most vendors showed good compliance with the routing guides, but three vendors were notoriously poor with their routing, rarely matching the guide when shipping and generating excess freight charges of $40-50 thousand quarterly.

The Solution

Working with our client, we instituted ARTC’s Vendor Portal for inbound routing. Our client synchronizes their order file with the portal. When vendors are ready to fulfill orders, either partially or fully, they log into the customer’s branded web page. The portal lists all of the open orders for that vendor. The vendor selects any orders that are ready to ship and enters the number of items if the order is incomplete.

The system then provides the preferred carrier and terminal information and can even tender the load automatically. If the vendor does not use the system-selected carrier, a reason is required. The vendor can then be charged back the difference in freight costs if there is not a valid reason for rerouting the shipment.

Initially, compliance was poor but after a few chargebacks, compliance increased to the point where they were no longer necessary. Our client ended up saving almost $200,000 in the first year.

The system assigns a PRO number and stores the shipment information in the accrual file associated with CalcRate, ARTC’s TMS. Shipment notification is transmitted to the customer in advance, which helps with planned receipts and is also used to track and trace the shipments, giving our client visibility to their inbound freight for the first time.

The improved level of detail was helpful in renegotiating inbound freight charges, further enhancing their savings. In addition, the inbound shipment costs were accrued in the freight payment system—streamlining the subsequent freight invoice reconciliation/audit process.

To learn more:
nfisher@artraffic.com
212-736-8565 Ext. 3045
www.artc-logistics.com

1. Consider if the provider has full-time employees outside of North America. If you do business globally, choosing a freight audit and payment provider with global employees can help streamline transactions. Providers with full-time staff around the world can offer multilingual support. A worldwide presence also demonstrates international business is an important part of their operations.

2. Gain transparency with digital images of EDI transactions. EDI transaction imaging capabilities securely document freight expenditures and ensure data is stored securely and is easily accessible. Virtual images also provide transparency throughout the transaction process.

3. Meet country-specific compliance needs. International payments can involve navigating different regional compliance requirements. Global trade demands certain financial transactions to be conducted through local bank accounts and in specific currencies. Meeting the requirements of each region is essential to the completion of payments.

4. Explore online exception management. Online exception management solutions allow shippers and transportation providers to collaborate on invoices requiring additional information or approval for payment—making sure payments are delivered quickly, while ensuring transparency for all parties involved.

5. Increase accuracy with data normalization and cleansing. Data normalization requires that all freight invoices are provided in an electronic format so no manual entry is needed and data can be standardized for accuracy. Data cleansing ensures all invoice information is accurate and up-to-date before entering the payment processing cycle.

6. Leverage a reporting and analytics solution. Choose a freight audit and payment provider that can accurately and efficiently identify freight billing discrepancies, as well as monitor key performance indicators of your carrier partner’s service. Having access to detailed analytics allows for transparency when evaluating costs associated with a carrier invoice and gauging the effectiveness of transportation service-level agreements. A thorough reporting function provides opportunities to gain insights into shipping trends and adjust operations.

7. Prioritize and evaluate experience. With the diverse array of freight audit and payment providers available, it is important to choose one that best aligns with your business needs. When assessing their level of experience, look for case studies, awards, and reviews from past and current customers.

8. Determine if the provider can auto-rate all transportation modes. Auto-rating across all transportation modes helps streamline billing processes and ensures accurate shipment pricing. This functionality is especially helpful for shippers that use multiple transportation providers or manage shipments of many sizes.

9. Automate your invoice processing business rules. Determine if your prospective freight bill audit and payment provider has an automated system that recognizes your unique internal invoice processing business rules. Being able to automate these rules ensures they are always triggered and frees up your time to handle other tasks. This feature can help ensure data accuracy and reliability.

10. Look beyond costs. Beware the economical provider. Consider all of the options available to you before deciding on a freight bill audit and payment provider. It can be tempting to pick the least-expensive option, but be wary. All providers are different, so research their reputation and understand exactly what services they offer when making your decision.

The Challenge

Aggreko was struggling with gaps in shipment payment data and needed better visibility, accuracy, and supply chain efficiency. “Every time we sent a shipment, we were almost starting from scratch; we were constantly in reactive mode,” explains Chad Thibodeaux, Aggreko NAM Transportation Manager. The company also wanted technology to help manage its complicated transportation network, improve procurement processes, and manage vendors.

“We’re high-maintenance,” quips James Hoogendoorn, Aggreko NAM Logistics Manager. “We needed a provider that wouldn’t be scared off by that. We wanted a logistics partner with the same intensity-driven mindset as ours.”

The Solution

Aggreko found an ideal partner in RedStone, a Kansas-based third-party provider (3PL). “RedStone didn’t run from our challenges,” Hoogendoorn says. In addition to the experienced RedStone management team, Aggreko gained access to the RedStone Latitude technology solution. Latitude provides real-time information for tracking and exception management, sophisticated reporting and analysis, as well as a best-in-class transportation management system (TMS).

Thibodeaux describes their partnership with RedStone as a major success: “We now have a tailored solution that captures data for every shipment and provides full visibility to crucial information such as length of haul, type of truck, dollar-per-mile cost, etc.”

RedStone helped Aggreko re-align procurement strategies by conducting a sweeping analysis to find opportunities for cost and performance improvements throughout their vendor network. Today, Aggreko and RedStone work together to continually analyze procurement effectiveness, identify ongoing opportunities, and find new vendors.

Nailing down accurate freight rates got easier as well, thanks to the custom freight calculator RedStone created for Aggreko. “We’ve always struggled with pricing freight accurately because we operate in many different markets using many different vendors,” Thibodeaux notes. The Aggreko team now uses this custom calculator as a quick, easy way to provide freight quotes.

RedStone also streamlined freight-payment processes by taking on accounts payable duties. Instead of paying hundreds of vendors, Aggreko makes one payment to RedStone, which manages individual payments.

With closely aligned philosophies, Aggreko and RedStone have developed a strategic partnership that supports the Aggreko mission. “When facing crisis events, our customers count on us to engineer solutions that allow them to continue being productive,” explains Hoogendoorn. “Ultimately, RedStone did exactly the same for us.”

To learn more:
solutions@redstonelogistics.com
888-733-5030
redstonelogistics.com

As much of society and the business world emerge from the pandemic and the disruptions that have upended supply chains over the past few years, it’s clear that many are planning for a new normal. Supply chain professionals are using their experience to inform future decisions and build stronger, more resilient organizations and processes.

“We continue to see shippers examining the vulnerabilities in their supply chains. To manage those vulnerabilities, shippers are craving visibility and automation,” says Kristy Brown, vice president, freight payment operations with CTSI-Global, a provider of freight audit solutions and logistics information technology. That extends to freight invoice processing and auditing.

“The freight bill sits as the culmination of every other piece of transportation information,” says Hannah Testani, chief executive officer with Intelligent Audit, which provides automated freight audit and recovery, among other services. “The bill provides the complete story of a shipment.”

Along with cost information, shippers increasingly are searching for insight from their data. “Companies come to us to take their complex transportation data and make sense of it,” Testani says.

The transportation costs shippers knew and understood prior to the pandemic have completely changed. “A lot of companies now are doing more brokerage or spot quotes, and they’re struggling, in some cases, to implement audit processes for those changes,” says Craig Cameron, vice president of sales and marketing with A3 Freight Payment, which offers freight payment, spend analytics, and business intelligence tools.

Companies are asking freight audit firms to help them quantify the drivers behind the changing costs. Is it related only to freight? Is it freight plus accessorials? Is it new accessorials?

And because costs have jumped so dramatically, “shippers are far more inclined to get back their pound of flesh,” says Tom Nightingale, chief executive officer with AFS Logistics, a 40-year provider of freight audit and payment, as well as LTL, parcel, and transportation management services.

Nightingale points to the rate to move a container from China to the United States. Two years ago, it stood at about $800. It’s now up to about $25,000. “Shippers don’t want to pay a penny more than they have to,” he says.

Increasing Complexity

The challenge is not just that transportation rates are rising, but also that they’re increasing in ways that can be difficult to decipher, says Nick Fisher, director of sales with ARTC Logistics, formerly AR Traffic Consultants. The range of additional fees and accessorials continues to expand, including fuel surcharges, high-cost delivery areas, and storage fees. “Carriers are finding more creative ways to add fees for services that historically might have been included in their rates,” he says.

The Impact of Labor

Labor shortages are also prompting more shippers to seek the services of freight bill audit and payment firms. “A lot of companies are short-handed and don’t have the staff to perform freight audit and payment in-house,” notes Tracy Meetre, chief commercial officer with logistics provider Sunset Transportation.

The limited reinstatement of money-back guarantees for parcel carriers also impacted the freight bill market, as it required freight bill audit and payment (FBAP) providers to support new carrier transit times and revised service guide rules.

“There has been a significant drop in on-time performance among integrated carriers, and as a result an on-time delivery audit can result in significant savings,” says George Kontoravdis, president of Fortigo, which optimizes and audits logistics decisions.

As more companies ship via parcel and internationally, in addition to truckload and domestic shipments, they’re also looking for outsourced freight bill audit and payment services, says Allan J. Miner, president of CT Logistics, an FBAP provider.

Another shift is the growing market prevalence of consumer and pharmaceutical companies.

Analytics in Demand

With freight bills growing increasingly expensive and complicated, shippers are seeking advanced analytics about their costs.

“The settled freight bill is a single source of truth,” according to Jeff Carlson, vice president, global sales and marketing with Cass Information Systems, a provider of payment management solutions.

Many shippers are trying to understand not only where cost increases have occurred, but also how they can rein in expenses and improve their supply chains. For example, they might assess whether sending a different type of truck to pick up their goods will help to reduce their costs in the first place.

Along with data to decipher what has already happened, shippers are seeking predictive analytics and “what-if?” scenarios. “Actionable information takes the guesswork out of company decision making,” says Jeff Pape, general manager, transportation, with U.S. Bank.

The push to digitize and eliminate—or at least reduce—paper-based processes also is gaining momentum. “Companies today continue to demand digital DIY capabilities from their providers,” Pape says. This includes streamlined processes, human and artificial intelligence-driven insights, improved data outputs and more.

Freight Market Stabilizes

While the recent challenges and disruptions aren’t disappearing, the freight market appears to be steadily stabilizing. “We’ve gone from triage mode to out of the emergency room and into the regular hospital room, where we can do some recovery,” says Cameron of A3.

The market is transitioning away from spot quotes to more contracted freight rates. At the same time, the freight market continues to improve, a result of strong consumer demand, e-commerce activities, and retailers’ need to replenish inventories.

Freight costs are starting to come down, and we are moving to more of a shippers’ market. Yet industry insiders are still trying to figure out where the market will land. “It’s not likely we’ll return to pre-pandemic norms,” Meetre says.

Even amidst the pandemic and supply chain turbulence, the freight bill audit and payment and transportation spend management sector has continued to evolve and to provide technology, software, and services that extend beyond the traditional audit offering.

“While shippers are tasked to do more with less, freight audit and payment firms are poised to provide robust outsourced solutions that offer year-over-year, verifiable, bottom-line results,” says Keith Snavely, senior vice president, global sales, with nVision Global, a specialist in freight audit services.

These are some of the freight bill audit and payment firms providing quality services that can help shippers save money and optimize their transportation operations and spending.

A3 Freight Payment: Helping Companies Better Manage Overall Transportation Spend

“We joke that we should know your freight invoice processing better than you should,” says Ross Harris, chief executive officer with A3 Freight Payment. Yet, this also is the goal the team at Memphis-based A3 pursues. Its approach encompasses not only the freight bill audit and payment process, but also leverages A3’s spend management solutions.

Through optimization and scenario modeling, A3 helps clients better manage their overall transportation spend. On average, A3 clients can cut about 6% from their freight spending through the freight audit, while savings from spend analytics average about 18%.

Many of A3’s customers tend to be high-volume shippers who need more than canned solutions. A3 combines freight payment, spend analytics, and business intelligence tools to deliver comprehensive, customized spend management solutions. It can support 18 languages and offers global invoice processing.

“Our core solution offers several features unique to this space,” Cameron says. One is complete electronic payments, which offer time-definitive settlement and better reporting functionality for logistics service providers.

In addition, shippers know their freight funds are tracked more accurately than is generally possible with paper checks. Data normalization and artificial intelligence solutions enhance the accuracy of the data reporting A3 can offer its customer base.

Along with searching for mistakes, A3’s optimization analysis reviews processes to identify changes that could lead to savings. This includes optimizing routing, utilizing least-cost carriers, consolidating shipments and orders, and shifting carriers, modes, or service to identify ways to save money while meeting service level requirements.

It’s not just its technology that differentiates A3 Freight Payment. Its team of experts will analyze shippers’ transportation data, including accessorial charges, their use of premium services, rate anomalies, minimum charge shipments, and other expenses.

Based on their findings, they’ll recommend strategies to eliminate excessive network costs that frequently go unnoticed, and then will monitor these continuously to keep waste in check.

Offering Effective Solutions

A3 is seeing growing interest in its supply chain financing solution, Harris says. Through this solution, A3 enables its clients to extend payment terms with their carriers, while ensuring the carriers are paid quickly.

When it comes to safeguarding clients’ funds, A3 takes its responsibilities seriously. “We provide a bankruptcy remote structure that protects our customers,” Cameron says. If something should happen to the firm, shippers’ funds would be protected.

A3 Freight Payment also can provide its clients with a Service Organization Control or SOC 1 report. This offers written documentation of the internal controls at a service organization as they pertain to the user entities’ controls over financial reporting.

A SOC 1 report not only offers shippers assurance of A3’s internal controls, it’s also becoming a requirement within many public companies. It also can help clients reduce the scope of their own freight function audit, Harris says.

Through its data normalization and artificial intelligence capabilities, along with its routing compliance solution, A3 helped a leading electronics manufacturer identify $1.2 million in savings. Shipments were identified as non-compliant and re-rated to quantify the cost of the incorrect carrier selection.

Additional scenario modeling showed where the least-cost carrier was not being utilized, and the impact that contractual minimum charges had on the routing rules. The shipper was able to utilize information from the analysis to correct operational deficiencies and update routing instructions to achieve savings.

“Our data normalization and artificial intelligence capabilities enable accurate analysis and quantified scenario modeling for our customers,” Cameron says.

AFS Logistics LLC: Providing a Comprehensive View of Freight Expenses

Over the past nearly two years, AFS Logistics has invested in transforming its proprietary systems, creating a “cloud-native, state-of-the-art solution with enhanced pre- and post-auditing capabilities,” says CEO Nightingale.

AFSmartAudit, part of the new, integrated AFSmart Technology Suite, offers shippers a comprehensive view of freight expenses across all transportation modes, so they can efficiently identify and resolve overpayments, billing errors and discrepancies, while also evaluating new opportunities to streamline processes.

Another module, AFSmartClaim, automates the creation, tracking, and management of overage, shortage, and damage claims.

Because the new interface offers automated functionalities and full visibility to a range of freight audit and payment data—such as invoice, shipping, and billing details—shippers can more efficiently and accurately manage their freight, and make faster, more informed decisions.

Over the past 40 years, AFS has completed 22 acquisitions, including some of the most successful freight services firms in the United States and Canada, Nightingale says.

As AFS has expanded, so has its client base. While historically focused on mid-tier manufacturing, distribution, and retail companies, the company has now added high-tech, retail, and automotive companies to its client list.

Pre-and Post-Payment Auditing Yields Cost Savings

AFS processes 4 million freight bills each week and manages about $11 billion in transportation spending each year. Among other services, it offers both pre- and post-payment auditing services. Clients typically save between about 6.6 to 8% of their transportation spend; the exact percentage varies with the mix of modes.

Consider AFS’s work with a global electric distributor that operates more than 500 branches and distribution centers across the United States. Many of these locations process massive parcel and LTL volumes.

At times, outbound packages weren’t properly delivered. While filing a claim would have enabled the company to get a refund, it had no process for doing so. As a result, each failed delivery was considered a sunk cost.

In addition, a lack of detailed reporting and the large number of LTL carriers with which the company was working made managing and gaining visibility to freight costs and performance difficult and cumbersome.

AFS Logistics, collaborating with a shipment visibility software company, designed a custom solution that provides access to accurate, timely transportation data and predictive insights, including parcel delivery status, location, and more.

Armed with this insight, AFS uncovered freight accessorial charge errors—including incorrect detention, reconsignment, and layover charges—that had previously been hidden.

AFS also implemented a new claims process the locations could use to file and manage less-than-truckload freight claims. In the first 15 months, more than $238,000 was returned to the company in paid claims, while parcel savings in 2020 hit nearly $1.2 million.

Given this, it is not surprising that Nightingale says more cargo owners and others are asking about the company’s FBAP services. “We have seen a pretty dramatic increase in the number of inquiries coming to us,” he says.

ARTC Logistics: Tools for Better Understanding and Control of Freight Spending

ARTC Logistics, formerly AR Traffic Consultants, has been providing advanced transportation management software and third-party logistics services for nearly 60 years. Its new name reflects the breadth of services the company offers, says Nick Fisher, director of sales.

These services include routing optimization, load tendering, tracking and tracing, a vendor compliance portal, and advanced analytics, among others. Each year, ARTC audits $450 million in invoices and manages 20 million packages. On its audits alone, ARTC saves clients an average of 2 to 4% of freight spend.

The name isn’t the only change. ARTC is enhancing its dashboard and reporting portal so they’re easier to use with handheld devices and allow for more custom reports. They’ll also provide greater connectivity with carriers.

“Customers will be able to gain more accessibility to more carrier information at one time and in one place,” Fisher notes.

ARTC’s freight dashboard displays key freight performance indicators. Shippers can see where their freight dollars are going, so they can better understand and control their freight spending.

CalcRate, ARTC’s flagship software program, is designed to interface with most ERP systems. By pulling orders directly, it keeps shippers’ accruals in balance.

The proprietary software ARTC offers can be hosted in the cloud or installed on a client’s IBM iSeries computer.The programmers who developed the code handle support calls directly.

Clients can use ARTC’s freight payment software, which offers a sophisticated audit system, to perform its freight audit and payment function in-house. Or, ARTC can act as a third-party freight payor. Because ARTC’s system is loaded with customer-specific carrier rates, shippers avoid incorrect carrier billings, including accessorial charges, classification errors, and fuel surcharges.

Accessing Industry Freight Data

As a third-party freight payment and audit company, ARTC has access to a plethora of industry freight data, Fisher says. As a result, its customers periodically receive specific rate analytics. That is, the rate components are routinely benchmarked and compared to what others in the industry are receiving.

ARTC also offers post-hoc opportunity studies and what-if scenario analyses. These help shippers determine how changes in rates or warehouse locations will affect freight costs.

Through its analytical support, ARTC recently helped one client recognize growth had increased to the point where they had outgrown their current carrier contracts. The company employed ARTC to review new carrier contracts.

These new contracts reflected the company’s current, actual size, helping to lower its rates. Savings for the first six months hit about $300,000, or about 22% of their spend, Fisher says.

Cass Information Systems: Delivering Visibility and Total Value

Launched as a neighborhood bank in 1906, St. Louis, Missouri-based Cass Information Systems has grown into a global provider of freight audit and payment solutions, serving multiple Fortune 500 companies. Its experience in freight audit and payment stretches back six decades.

Along with its freight and parcel audit services, the company’s business intelligence platform, CassPort, offers timely and accurate visibility to cost and transportation information on inbound and outbound shipments across the globe. Shipment data is aggregated and normalized at a granular level, providing a comprehensive view of transportation costs.

This visibility allows shippers to analyze not just their spending, but also their operations. “Clients are asking for advanced analytics that they can leverage,” Carlson says. In addition to reducing costs, they want to better manage their supply chains by, for instance, analyzing networks and traffic lanes.

And as interest rates have started to rise, shippers have shown more interest in holding onto their money for longer. Of course, carriers still want to be paid quickly. Through the Cass Financial Suite, Cass can pay carriers within a few days, and then collect from its shipper clients 60 to 90 days later, Carlson says.

Full Claims Management Service

Among the other services Cass offers is a full claims management service. “We’ve taken something that’s manual and labor intensive, and streamlined it,” Carlson says. Here too, Cass helps clients use their claims data to learn how to reduce future claims by, for instance, changing how they build pallets.

One of Cass’s clients operates seven global transportation control towers and produces 300,000 products across its various companies and divisions. Its transportation operations span 100 countries. Leadership has been steadily centralizing management of transportation operations and migrating the freight audit and payment processes for ocean, air, and parcel shipping to a central, standardized process with Cass Information Systems.

Among other steps, Cass handled responsibility for onboarding carriers. Because freight payment remains a relatively new concept in many parts of the world, Cass has had to navigate cultural barriers and provide education, particularly to carriers. It worked with the carriers in multiple ways, including developing a library of electronic invoice formats to simplify the onboarding process.

Cost savings through audits and minimizing duplicate billings at the company have ranged from 1 to 5%. As important, teams across the globe can view the same, accurate information to compare costs and other information. This visibility led to global freight rate agreements that helped save money and simplify rate management.

“At the end of the day, we don’t want to just keep correcting mistakes. We want to fix the root causes of errors and then move on to analysis,” Carlson says. “It’s not just about audit savings, but the total value we can provide.”

CT Logistics: Tackling Complexity and Providing Control

FreitRater, the proprietary and global freight bill audit and payment platform developed by CT Logistics, can efficiently and accurately process complex transportation rating structures, says Allan Miner, president.

More than 20 of the largest trucking lines in North America, and more than 25 of the Fortune 1000 corporations, currently use the solution. The in-house development team behind FreitRater includes programmers with between 4 and 31 years of experience with the solution.

“In general, FreitRater identifies gross savings between the billed amount and the paid amount, averaging about 3.2%,” Miner says. This is a blended average, however, and a new shipper client who has never engaged an outsourced FBAP provider usually saves more in its first few years, he adds.

Shippers can implement FreitRater in one of several ways. They can outsource implementation and operation to CT Logistics, they can operate it under the BPAAS (Business Process as a Service) model, or as a SAAS (Software as a Service) model. Large shippers who prefer more control and a greater ability to customize the system can license it in-house.

CT Logistics has leveraged its headquarters location in Cleveland, Ohio, to work with companies in many industries in the area, including metals, automotive, chemicals, petroleum, and rubber manufacturing. It has also worked with many companies that rely on the raw materials these companies offer, including those that provide parts for vehicles, agriculture, aerospace, and other industries.

At one point, a multinational holding company for automotive and industrial original equipment manufacturers engaged CT Logistics because it struggled with a lack of visibility to its logistics spend. It also couldn’t easily determine which carriers were being deployed. In addition, each business unit had its own accounts payable team and processes, limiting visibility and transparency across the enterprise.

By engaging CT Logistics and leveraging its international audit and payment services, the company gained visibility to its scoped logistics spend globally, and down to the accessorial level, Miner says. It also gained greater and more structured buying power. That led to the implementation of a preferred carrier program. First year savings topped $4 million.

Best Practice Audit Controls

Another client, a global energy company, struggled to audit and pay its domestic and international carriers, due to limited resources. Its extensive roster of suppliers also made it difficult for the company to consolidate less-than-truckload shipments.

CT Logistics worked with the company to implement best practice audit controls and data capturing. Among other results, the company now can internally audit 40 locations, as well as distribution operations in more than 140 countries. It’s also able to generate allocation and reporting at the stock-keeping unit (SKU) level for all pool points (regional terminals that accept consolidated LTL shipments) and final destinations.

Results such as these help explain why CT will celebrate 100 years in business in 2023. Not only that, it has been owned by the same family since 1965.

CTSI-Global: Boosting Business Intelligence Capabilities

Around the onset of COVID-19, Memphis-based CTSI-Global rolled out its invoice upload portal. The move, an indication of the company’s focus on both technology and customer service, proved fortuitous. The volume of spot quotes jumped during the pandemic.

With more shippers and carriers working remotely, the portal provided an efficient way for them to continue to submit their freight bills. Each day, between 6,000 and 8,000 invoices move through the portal. Once shippers upload their invoices, they can track them through the system.

“It’s a very sweet tool we developed,” says Kristy Brown, vice president, freight payment operations.

CTSI-Global processes 5 million freight transactions every day, which together total more than $15 billion in freight dollars annually. The company’s multi-modal audit technology automates audits, checking all duplicate, rate, discount, ancillary, and performance metrics, and generates refund processing for exceptions.

The company’s audit staff boasts more than 400 years of combined experience across all modes of transportation, and in functions ranging from audit and analysis to contract management, and from exception management to payment processing.

Employees stationed in facilities throughout the world speak the local language and understand cultural nuances, and can leverage their experience to quickly address any challenges.

Currently, CTSI-Global is doing a great deal of work with parcel offerings, Brown says. Through its freight bill audit process and its business intelligence solution, CTSI-Global is helping its clients identify and leverage least-cost, small-parcel carriers as much as they can. “We’re investing a lot in the parcel arena, especially around parcel manifesting,” she adds.

CTSI-Global’s business intelligence capabilities are another area of focus, Brown says. CTSI-Global partnered with an apparel brand that retails in more than 110 countries, including over 3,000 branded shops. The retailer’s outbound U.S. domestic service includes primarily shipments from four regionally based distribution centers; these travel to wholesale, retail, and online customers.

Improving the Audit Process

The goals of the partnership were to improve the retailer’s freight audit process and data management capabilities. To achieve this, CTSI-Global performs a pre-audit, three-way match against the shipment file, carrier invoice, and rate, and then conducts cost allocations and generates a weekly pay file on all approved invoices, customized to shipper specifications.

These steps create a seamless integration to the retailer’s business processes. Among other benefits, this allows management to monitor key metrics like freight accruals, freight spend, and expected versus actual cost. The retailer also can track carrier performance across multiple metrics, including on-time performance, billing accuracy, and price.

“Shippers are not just looking for traditional freight bill organizations,” Brown says. Instead, they’re looking for more advanced services, and particularly business intelligence that can help them manage increasingly complex supply chains, she adds.

As CTSI-Global continues to invest in the advanced services and intelligence that shippers need to build their businesses, it’s also growing as a company. “Customers are looking to us to support them in the United States and globally,” Brown says.

Fortigo: Maximizing Freight Savings for Shippers

When FedEx recently introduced an FBAP certification program, it named Fortigo one of six FBAP providers globally to be certified for both parcel and less-than-truckload freight. “This is a recognition of our capabilities in terms of accuracy, automation, and our willingness to provide win-win solutions,” says George Kontoravdis, president of Fortigo.

The certificate also recognizes Fortigo’s emphasis on cybersecurity and its ability to protect confidential data, like shipping patterns, contract agreements, and commodity descriptions.

Fortigo, which celebrated 20 years in business in 2021, guarantees the accuracy of its freight audit process. “It’s an industry-first feature that our customers love,” Kontoravdis says.

Because Fortigo’s platform is geography agnostic, it can manage freight bills across all regions of the world and from any mode of transportation.

“Additionally, we can pay any carrier, with any currency, in any location,” Kontoravdis says. It’s also able to tailor the freight audit process and turnaround time to customer requirements.

One-Stop TMS

Along with its freight audit and payment solution, Fortigo offers a one-stop transportation management system (TMS) that can handle any type of shipment. “This allows for the closed-loop system that empowers Fortigo to identify compliance anomalies with vendors, saving money and time for our customers,” Kontoravdis says.

In May 2022, Fortigo’s integration with the Uber Freight platform went live. This allows Fortigo clients to continue viewing contracted rates within their established carrier network, while also viewing Uber Freight’s real-time dynamic pricing inside the Fortigo TMS. As a result, they can maximize freight savings.

Fortigo continues to expand its offerings to adapt to the changing logistics environment. Over the past year or so, it has added more than 85 new features, such as integrations with airline cargo systems, to its solution.

First-year savings for customers switching from manual processes to Fortigo’s solution generally range from 7 to 10% for freight audit, Kontoravdis says. Established customers typically see annual savings of about 1 to 4%, with the exact rate depending on the volume of shipping and complexity of their transportation network.

From its start 20 years ago, Fortigo has focused on growing organically and by always ensuring it could meet its customers’ needs. Fortigo works with several of the top airlines. When the pandemic hit and governments around the world issued stay-at-home orders, airlines were forced to quickly respond to diminished demand in all aspects of the business.

“Time-sensitive execution strategy changes were urgently needed,” Kontoravdis says. Fortigo’s streamlined, all-in-one software-as-a-service (SaaS) delivery model allowed its airline clients to rework and re-optimize their supported supply chain channels overnight and make necessary changes hourly. This empowered front-line workers to continue executing, based on updated company strategy, ensuring hard-dollar savings.

Intelligent Audit: Optimizing Shipping Networks and Modes

As supply chain disruptions increased over the past few years, many companies started to try to manufacture and source from vendors in more countries, in their efforts to diversify and lower their sourcing risk. These shifts have also prompted many companies to engage Intelligent Audit to provide business analytics that can help them identify opportunities to reduce costs and improve their operations, says Hannah Testani, CEO.

To help its clients accomplish this, Intelligent Audit’s solution examines more than 150 service points across all transportation modes, identifying service-related issues, residential surcharges, dimensional rates, and duplicate billing, among other issues.

Its business intelligence platform allows clients to access and visualize data so they can optimize their shipping networks and transportation modes, and manage transportation costs in real time, among other capabilities.

Deep Learning Capabilities

Intelligent Audit’s technology leverages deep learning models (DLM). A form of artificial intelligence originally proven to be successful for self-driving cars, the healthcare space and fraud protection, Intelligent Audit’s proprietary machine learning algorithms are able to find anomalous patterns in their customers’ data with precision.

So, even when a company’s transportation spend looks consistent on a macro, enterprise-wide level, DLM can pick up spikes or other issues impacting one part of it. “It can see, for instance, a spike in the cost per kilogram in a specific lane,” Testani says. Then, with the prescriptive analytics, shippers can take action before a small anomaly becomes a bigger problem.

In examining freight expenses for a large retailer, Intelligent Audit’s DLM technology noticed that the average cost per shipment for several locations had spiked. Intelligent Audit provided the anomalous information to the shipper accompanied by actionable intelligence to contextualize the issue.

Further examination revealed new items were being shipped from these locations in packages that prompted handling surcharges; these SKUs either needed to be marked up when charging e-commerce customers or offered only as pick-up, in-store items.

Without Intelligent Audit’s detection algorithms and its team of data scientists, the retailer probably wouldn’t have noticed the surcharges until they grew so great they impacted overall freight costs. “With our technology and team, we help shippers leverage data to enable them to be smarter shippers,” Testani says.

It’s not only its relationships with shippers that are critical to Intelligent Audit. It takes a collaborative approach when working with carriers. “When there’s an exception, we want to make carriers aware of it and work with them to correct it by showing them the root cause,” Testani says. “We don’t just blindly short pay.”

This approach helps shippers, who also need to maintain strong relationships with their carriers.

Launched in 1996, Intelligent Audit is woman-owned. It recently was certified by the Women’s Business Enterprise National Council (WBENC) as a tier-1 diversity spend supplier. WBENC validates businesses that are at least 51% owned, operated, and controlled by one or more women.

Show Me the Money

About 20% of the Fortune 50 work with Intelligent Audit. In 2021, it audited more than 1.1 billion shipments, accounting for more than $31 billion in transportation spend. Clients typically save between 2 and 20% of their transportation spend, with most saving about 5%.

“It’s a fun time to be a technology company in the supply chain space,” Testani says. “We’re looking to continue to help shippers be smarter shippers.”

nVision Global: Streamlining Supply Chains with Custom Solutions

nVision Global offers seven full-service processing centers on three continents, spanning multiple time zones, and staffed with experts fluent in local languages and able to provide regional expertise, says Keith Snavely, senior vice president, global sales, with nVision.

Many of the company’s clients are multinational corporations that need a provider that can offer freight audit and payment services around the world and for all modes of transportation-related invoices, while providing a single, global data warehouse, Snavely says. They’re also looking for analytical tools that can help them lower transportation spend.

nVision can meet these goals. “By providing our customers with a single, global data warehouse and analytical tools, we are able to help them optimize and streamline their global supply chains,” Snavely says.

Companies of all sizes rely on nVision’s world-class freight audit and payment solutions to provide year-over-year verifiable bottom line savings, he adds.
Among other capabilities, nVision’s customizable audit solution can incorporate shippers’ edits, validations, and business rules. “We don’t have a canned solution we try to squeeze clients into,” Snavely says.

nVision also provides images of all invoices, including EDI, along with all supporting documentation. Because nVision operateson a single, global processing application, it can provide clients with one global data warehouse oftheir supply chains.

A $1.3-billion supplier of automatic test equipment and interconnection systems contacted nVision for its help in efficiently managing freight invoices for its transportation providers in multiple countries who worked in multiple currencies—including Mexican pesos, Malaysian ringgits, Chinese renminbi, and U.S. dollars—for multiple divisions.

The company needed a “solution that would allow them to roll up the total spend of each division into one global database,” Snavely says. nVision’s Global Invoice Audit & Payment Solution met the company’s needs.

Global Visibility Drives Insights

By gaining global visibility to its spending in real time, the company could capture total transportation costs across all its business units, as well as the volumes handled by each service provider. This visibility also enabled the company to reduce the number of suppliers it was using and ensure it was receiving the best possible contracts the market could offer.

On top of this, it could achieve savings through the freight invoice audit and by reducing internal administrative costs and transportation costs. “It has been able to realize year-over-year savings, along with supply chain efficiencies and productivity gains,” Snavely says.

The global expertise and robust, proprietary technology nVision offers benefits companies across all industries. Its customers routinely realize savings in their annual transportation spending of 8 to 12%, as well as an additional 1 to 2% savings by reducing duplicate billings. This is in addition to the savings realized by engaging nVision Global to process their transportation invoices, Snavely says.

Sunset Transportation: Shoring Up and Fortifying Supply Chains

The pandemic and related supply chain disruptions elevated supply chain and logistics operations to the board level, says Tracy Meetre, chief commercial officer, Sunset Transportation. It also prompted many shippers to look for partners that they can be confident will help them navigate whatever global supply chain disruptions occur in the future.

“They want to know their supply chain has been shored up and fortified,” she adds. That’s helping to boost Sunset Transportation’s business.

Through Sunset’s flagship logistics management program, its employees become extensions of the shipper’s logistics team. By their work together, shippers gain the visibility, information solutions, and reporting they need to expertly manage their logistics operations and spending. “They also gain additional expertise that they can tap into when disruptions occur,” Meetre says.

Sunset Transportation is a St. Louis-based, second-generation, logistics company. It’s certified as a women-owned business through the Women’s Business Enterprise National Council (WBENC) and women hold half of all leadership roles. Sunset makes five promises to every customer: savings, visibility through technology, data-driven decisions, continuous improvement, and relationships rather than transactions.

Sunset’s shipper platform, LOGIK, offers visibility to order data, in-transit tracking, and shipping performance metrics to provide shippers the insight that can guide their decision-making.

As part of this platform, the Pay LOGIK freight audit and payment system works across all transportation modes. It reports on freight invoice and data management in a configurable customer dashboard, helping customers streamline their logistics accounting processes.

FBAP Solution Integrated with Freight Management

A solid freight audit and payment solution is best when it’s coupled with a good freight management solution, Meetre says. A logistics management provider, like Sunset, can bring technology to the table and help shippers negotiate rates, lower costs, and gain visibility throughout the order-to-cash process. Shippers then can couple this with a solid freight audit and payment process.

Sunset worked with a manufacturer of sewing machines, vacuum cleaners, and other products to provide it with visibility to its supply chain, among other capabilities. For instance, Sunset’s freight audit and payment service began reviewing spending on parcel services, an area that previously lacked transparency. To accomplish this, Sunset is able to collect data at the shipment level in real time.

“Logistics management companies like Sunset can improve their processes all the way from the point of order origination and customer service through the transit process and into  freight audit and payment,” Meetre says.

As a result, it’s able to provide a solid, streamlined solution. Sunset also can offer the safeguards and supply chain and logistics expertise a company needs when its supply chain is disrupted.

“We provide shippers with all the expertise, technology, and assurances they need as they navigate the ups and downs of the industry,” Meetre says.

Trans Audit: Simple, Swift, & Straightforward Recoveries

Through its focus on post-payment audit work, Trans Audit has won multiple awards, and returns tens of millions of dollars to its clients each year, says Chad Kennedy, chief executive officer and president. Trans Audit performs transportation post audits across all modes, all industries, and throughout the world, with multiple locations in the United States and a presence in Europe, Singapore, and China.

Over its 45-year history, Trans Audit has delivered more than $1 billion in benefits to its clients. “We take pride in facilitating simple, swift, and straightforward recoveries,” Kennedy adds.

A key theme of the company is “the client’s ease of service initiation and utilization,” Kennedy says. From onboarding and data ascertainment to identifying, submitting, and resolving claims, Trans Audit handles the majority of the work, leaving very little for clients to manage.

Professional, Proven Process

“Trans Audit’s client-centric approach provides significant benefit with minimal client involvement, typically less than one hour monthly,” he adds. “We have a structured, professional, collaborative, and proven process that is very simple to establish and manage.”

“Because Trans Audit works on a contingency basis, it sits outside the budget,” says Vikki L. Van Vliet, senior vice president of sales and marketing. At the same time, “Trans Audit, through its recoveries, provides a direct infusion to clients’ bottom lines,” she adds.

Trans Audit provides modal and cross-industry expertise and does not rely solely on automated reviews of transactions. Trans Audit assigns SMMEs, or subject matter modal experts, within each client team.

“We have extensive transportation-savvy staff examining transactions to not only ensure contract compliance, but also to confirm if all charges make logistical sense,” says Peter Kerwin, director of onboarding and operations for Trans Audit.

“As a result, Trans Audit provides insight and value that goes above and beyond monetary recoveries,” he adds.

A differentiating feature is Trans Audit’s consistent investments in new technology. A prime example is TransPortal+. After being first to market with web-based reporting in 2007, TransPortal+ represents another step in the evolution of Trans Audit’s Client reporting and technology deployment. This proprietary, robust, MS Power BI-based platform provides clients with key analytics and metrics, business intelligence, and reporting that is flexible and rich in information.

Trans Audit clients can leverage the data to take corrective action. For instance, clients can use the platform to determine which carriers are billing accurately, and which are not. They can also use the platform to implement procedural improvements.

Combining information, technology, and modal expertise enables clients to efficiently take steps, such as working with their carriers or adjusting internal processes, to ensure payments are made accurately and recurring errors are corrected, says Van Vliet.

Trans Audit works collaboratively with its clients as well as with their freight audit and payment providers and carriers.

“We view ourselves as a value-add to the freight audit and payment process,” says Kerwin. “We add value, as we have more time, and technical and modal resources devoted to the audit, so we can perform deeper analysis.”

As a result, while the majority of Trans Audit’s clients also use freight audit and payment providers, Trans Audit still returns substantial refunds year over year.

“We are the second level of insurance at no cost to our clients,” Van Vliet adds. “It’s low-risk, low-effort, and high-reward.”

U.S. Bank: Providing Value to Both Shippers and Carriers

As a bank in the freight audit and payment space, Minneapolis-based U.S. Bank focuses on technology, security, reliability, and delivering solutions that offer these qualities, says Jeff Pape, general manager, transportation, with U.S. Bank.

For instance, U.S. Bank’s multi-year investments in technology and data analytics help provide actionable insights that can help shippers improve their operations. “And through our consultative approach, U.S. Bank offers recommendations that provide value to both shippers and carriers,” Pape says.

U.S. Bank also is able to help shippers enhance their working capital by extending transportation payments to 60 or 90 days without renegotiating contracts.
Through its supply chain finance offering, U.S. Bank pays carriers upon invoice approval, and then the shippers pay the bank according to the contract terms. This service also helps shippers improve their carrier relationships, as carriers no longer have to wait for payment for 30 days or more.

Especially in an era of tight capacity, maintaining strong relationships with carriers is critical to shippers’ ability to maintain healthy supply chains. U.S. Bank’s Freight Payment platform provides end-to-end visibility for both shippers and carriers.

“The platform enables shippers to deliver dependable and predictable payments to their carriers. It also helps them resolve exceptions quickly and reduce errors by collaborating online and in real time,” Pape says.

U.S. Bank helped a large North American retailer speed its audit function and its process for approving carrier invoices. To start, the team at U.S. Bank onboarded $800 million in carrier invoices in less than 30 days.

“With our precision business rules, we quickly audited and approved their backlog of invoices, some more than 90 days past due,” Pape says.

Going forward, carriers can now get paid in as quickly as 24 hours following the bank’s receipt of the invoices. These changes help the retailer maintain solid carrier relationships.

Offering Tremendous Value and Benefits

As more transactions are conducted online, U.S. Bank’s Small Parcel solution also offers tremendous value and benefits. A large company in the aerospace and automotive industries was struggling with its internal routing guide compliance. The U.S. Bank team developed a cost model that compared two dominant parcel carriers, while normalizing for contract differences, such as dimensional weight divisors and service levels.

“The initial model uncovered more than $1 million in savings for just two divisions,” Pape says. The company has since asked U.S. Bank to deploy its unique model to support similar analyses for other divisions.

Security remains top of mind for many shippers, given ongoing stories of ransomware and other cyberattacks. “U.S. Bank has a world-class, Tier IV data center that hosts mission-critical servers and systems in a reliable, fault-tolerant, and secure environment,” Pape says.

“One hundred percent of the payment and servicing functionality we offer is operated within U.S. Bank,” Pape says. “We are a heavily regulated financial institution and, as such, our processes and systems are designed to protect our customers’ funds, and their data.”

Questions to Ask When Evaluating FBAP Firms

Before you sign on the dotted line, consider these must-ask questions:

1) How established is the firm? Ask how long the company has been in the core FBAP business, and how long its ownership has been active in running the business. Ideally, the company and its leadership will have some history in the industry.

2) Does the company perform the audit work itself? Some outsource to white-label providers.

3) What exactly does the company provide? Get the specifics.

It is also important to ask:

1) How does the company treat carriers? Shippers need to maintain strong relationships with their carriers, and the freight audit team can impact their efforts. Rather than simply blame the carrier for any errors, the audit firm should work collaboratively with carriers to identify and fix the causes of mistakes.

2) What is the current state of their technology and what are the planned investments? “While none of us know what will happen or how technology will change, you want a freight bill audit and payment company that is willing to make investments,” says Jeff Carlson, vice president, global sales and marketing with Cass Information Systems.

3) Can the company help you become a smarter shipper? The information it provides should enable you to more effectively manage your transportation and logistics operations.

4) How important is an analytics platform? Do you want to have to call a team of people every time you have a question, or are you looking for a self-serve solution?

Also watch for and be wary of companies that offer limited data capture with no data normalization and/or cleansing.

5) What safety measures are in place? Ask about a SOC 1 report and audited financial statements. All audit firms should keep client funds separate from their own.

Data protection is also important. “Freight bills contain reams of valuable information about your supply chain,” notes Jeff Pape, general manager, transportation, with U.S. Bank. The company should keep your information—along with your funds—separate and secured.

6) How global is the provider? If you operate—or plan to operate—in multiple countries, you want a provider that can accommodate varying regional requirements, languages, and zones. It should be able to remit payment globally through in-country bank accounts and provide a global data warehouse containing all transportation activity.

When to Hire an FBAP Firm

When should a growing company consider engaging a freight bill audit and payment firm? While no single answer will fit every company or situation, the following considerations could be signs it’s time to consider a FBAP firm:

1) A lack of visibility and understanding of your transportation spend.

2) A loss of core transportation resources. If you’ve lost employees with expertise in freight audit, engaging an external FBAP firm may make sense.

3) You’re unable to audit your freight bills and accessorial charges on a timely basis, and/or you can’t ensure you’re not paying duplicate invoices are also signs it’s time to consider an outside provider.

4) Consistently lacking accurate spend information, drowning in inefficient invoice management processes, or not auditing each bill are good signs that engaging a partner would be well worth it.

5) When you’re looking to gain more insight from your transportation data, such as trend analysis, it’s time to consider an audit firm. “We do this day in and day out and can offer the service,” says Kristy Brown, CTSI-Global.

6) You’re not sure you’re shipping at the right service levels with the right carriers in select zones. You may find ground service and 3-day service arrive the same day with varied charges. “An FBAP vendor can spot these common issues and alert your team,” says Ian Faith, Körber.

The Future of the FBAP Market

Q&a With Ian Faith, Körber Transportation Spend Optimization

For the past 20 years, enVista has been one of the leading freight audit and payment providers. With Körber’s acquisition, the company is now on a trajectory to offer even greater value to current and future clients.

What are some of the most significant recent developments in the freight bill audit and payment (FBAP) market?

The most interesting change is around the leverage between shippers and carriers and what that means to the relationship. The data shows the infusion of government stimulus money drove parcel capacity to the benefit of the carriers.

We now see the effects of inflation and rising shipping prices along with falling capacity swinging leverage over to shippers who have choices when it comes to service in most regions.

The savvy ones are revisiting their contracts to understand their options. Shippers were focused for many years on becoming a shipper of choice, meaning they were aligned and ready for their carrier’s services, which should still be a business focus.

The most important development for shippers is having actionable data at your fingertips; it can be a transportation team’s secret weapon. How great is it for a shipper to be able to provide excellent service to their customers while being optimized and reducing costs at the same time?

This can only be done with visibility and intelligence being applied through findings in their data.

How can Körber benefit supply chains?

Our enVista FAP Services was just acquired by Körber because of our success and future potential to serve companies with very complex supply chains. Companies with multiple DCs who have a multitude of SKUs and need services across all modes and multiple currencies are our focus. That aligns with Körber’s focus on solving complex supply chain problems.

myShipINFO® powers Körber’s freight audit and payment solution, helping shippers optimize and improve their supply chain operations across all modes of transportation, to and from any location across the globe, in any currency or language.

Transportation leaders manage large amounts of disparate data in order to track and analyze their transportation spend. Financial managers want visibility to accurately spend data on a consistent basis to make informed decisions. The enVista analyst team works together to deliver enhanced visibility to transportation expenses, providing convenient access to business intelligence and accurate transportation data within a single portal, enabling critical analysis and actionable data to drive cost savings and decision making.

Our experienced sourcing and contract team will, through an analysis of a company’s business, drive efficiencies and cost savings that will help them get closer to an optimized transportation department.

Supply chains are growing more complex by the day and with the backing of such a great name, along with the experience our enVista FAP team brings to the marketplace, this is going to be game changing. Körber prides itself in helping to manage the supply chain as a competitive advantage for its clients.

A: Companies that do not have visibility across their whole logistics operations are likely to miss out on opportunities to work more efficiently and deliver cost savings.

For example, a customer told me they spent around $95 million on a single lane from the United States to EMEA. Because that company had grown by acquisition, they ran multiple ERPs. When we brought them on to our platform we could see the spend was almost 140% higher on that lane, and multiple transportation providers were being used and consolidation opportunities were undetected.

With one simple but trustworthy view of their logistics spend in a single platform, they were also able to build a new DC that meant more robust and cost-efficient shipping without affecting customer satisfaction.

Q: What are customers looking for in a freight audit and payment solution?

A: Customers will often state they have freight invoice validation under control with either manual checking, in-house systems, or add-ons to their ERP or TMS platforms. Frankly, none of these methods are complete or robust enough to handle all of the data on an invoice, be it EDI, spreadsheet, or paper (or any mix of the three).

Additional supporting documents are not usually considered such as POs, BOLs, PODs as well as additional ASNs and RFTs. The invoice may be rated and calculated correctly based upon the known factors to an auditor, but without additional supporting documentation, do we know if the service level has been met or was the waiting time charge fair based upon the pick-up times and arrival time at the customer’s warehouse?

Customers want to know the freight bill audit and payment (FBAP) technology company is ensuring mistakes are caught and rectified as soon as possible with the transportation provider—be that error in the favor of the customer or the transportation provider while still adhering to Incoterms and avoiding costly late payment charges.

What a lot of customers do not see is the benefits of having accurate data available to them in a business intelligence platform (be it the FBAP vendor’s platform or their own internal BI tools). This is where consolidation opportunities can be found, mode shifts become evident, and discretionary accessorial charges can be caught and negotiated going forward.

Q: What are the long-term benefits of using freight audit and payment?

A: In the first 6 to 12 months of a freight audit project, the freight audit vendor can quickly identify “low hanging fruit”—these can be continual errors in invoices. It also means rates which have expired or have not been negotiated can be identified and corrected very early. Non-company liability is also a key way to save money by ensuring not only invoices pertain to your own company but also the part of the business you work in if the company is split into varying parts.

Freight audit vendors will automate the process of cost allocation (GL coding) which allows individuals doing this work to engage in higher-value work.

In the medium to long term, the savings and benefits come from continued checking of duplicates, non-company liability, correct rating, and meeting service level guarantees but more importantly using business intelligence tools to compare and pose “what if” scenarios to their current methodology and often change that—leading to further reductions in costs and manual work.

The freight bill audit and payment market has exploded in recent years and includes providers with diverse service offerings.

“The majority of players in the freight bill audit and payment space provide niche services that focus on one or two transportation modes,” says Josh Miller, vice president of sales for Memphis-based CTSI-Global. “The level of technology and the support model can vary significantly from provider to provider.

“It’s important for shippers to choose the freight audit provider that best meets their specific needs, both from a technical and support perspective,” he adds. “Not all freight audit and payment companies are alike.”

For shippers, the question becomes how to navigate the market of FBAP providers and identify the partner who is the best fit for their operation.

Who Needs a Provider?

Opinions vary about the categories of shippers that are clear candidates for enlisting an FBAP provider. In general, an FBAP provider makes sense for many types of shippers.

“Shippers with a modest and diversified transportation spend can and should consider using the services of an FBAP provider because their support extends beyond logistics activities—they support financial teams as well,” says Scott Matthews, president, freight audit and payment, AFS Logistics, based in Shreveport, Louisiana. “They are specialized and equipped with the operating systems to perform these services at significantly less expense than performing them internally.”

Companies with $500,000 in freight spend, not including parcel, should consider enlisting outside help.

“The cost/benefit and value proposition are beneficial from a purely economical perspective,” says Allan J. Miner, president of Cleveland-based CT Logistics. “A freight bill and audit payment provider can perform the required steps—if they are ISO [International Organization of Standardization] and SOC [System and Organization Controls] certified—at a fraction of the cost than a shipper’s internal accounts payable department trying to audit, pay, and accrue the open liabilities until payment is effectuated.”

Large, complex companies—including those that are decentralized and have a global presence—are obvious candidates for using a provider because they have “a lot of moving parts and different business groups and regions to consider,” says Jeff Carlson, vice president, global sales and marketing, for St. Louis-based Cass Information Systems.

The right FBAP provider not only gives those businesses a more efficient process, but also provides better data about their freight payment transactions that they can use for improved planning, he adds.

Don’t Leave Money on the Table

Meanwhile, shippers should partner with a freight bill audit and payment provider when their annual freight spend exceeds $10 million.

“Carriers consistently invoice 3-5% of your total transportation spend incorrectly,” Miller says. “If you’re not auditing every charge on each invoice, or if you don’t have visibility to your shipment level globally, then you’re leaving money on the table.”

Here are practical tips for choosing the right FBAP provider for your company.

Design your provider selection process with a sharp eye on their unique operation and needs. Thoroughly understanding those needs is a crucial first step.

“It’s important to identify and document your company’s needs prior to engaging the freight bill audit provider,” Miller says. “Solicit feedback from all departments—finance, transportation, IT, purchasing—that will be impacted by outsourcing the freight audit process.

“Once you have the requirements documented, then research freight audit providers to identify a handful that you feel may be able to meet your requirements,” he adds. “Distribute a detailed request for proposal (RFP) document with sections on operations, finance, technology, and support for both you and your carriers. Then create a scoring system to weigh the supplier responses.”

Miner agrees shippers seeking providers should tailor their inquiries and search to their unique operation, making sure any provider is a good fit.

“Shippers should base their evaluations on the specific solutions they need from the provider,” Miner says. “This includes allocating each shipment’s freight cost to the SKU level and apportioning the cost breakdown by the shipper’s specific internal accounting system general ledger numbers.”

Choose a provider that understands the process nuances specific to their industry, as details and practices can vary by industry.

“Especially with larger companies, it’s good to make sure that the provider you’re considering has at least a good working knowledge of your industry,” Carlson says. “That ensures, especially during the implementation process, that what’s being put in place actually will support your other business needs.”

Ask prospective providers detailed questions related to their capabilities unique to each mode within your network to ensure they can support all the carriers and modes you use.

Make sure providers can support all countries within your global footprint.

“The biggest difference between implementing freight audit solutions in North America versus other regions is understanding the local regulatory and tax requirements,” Miller says. “Global freight audit is not ‘one size fits all.’ Each country has its own unique requirements that must be accounted for.

“It’s important that the freight audit provider has the necessary knowledge and experience within each required country,” he adds.

For that reason, Miller advocates drilling down into a provider’s capabilities rather than accepting their surface claims.

“It’s easy to put together a flashy presentation that claims a provider can support certain processes,” Miller says. “But to truly gauge a freight audit and payment provider’s capabilities, request to see specific scenarios demoed within their system. The more specific you can be in your scenarios, the better.”

Exceptions and Added Value

Evaluate a potential partner’s emphasis on customer support. Of particular interest is how providers contend with exceptions or discrepancies in the invoice process.

“Look for a provider that takes a proactive approach to supporting their customers,” Miller says. “You want a provider that actively troubleshoots exception invoices to identify root causes as opposed to a company that puts the burden on you by just slotting the invoices to the customer exception portal.”

Verify that a prospective provider can offer more than just access to a platform to process their transactions.

“Exceptions will exist so having a provider that identifies the root cause to correct immediate issues while implementing solutions to resolve them is of significant value,” Matthews says.

Tech tools and automation are critical but must be accompanied by expertise and collaboration.

“While technology provides for improved velocity, it’s important for the service provider to demonstrate their integrated exception management functionality,” Matthews says. “Managing exceptions requires oversight from the carriers, shippers and the FBAP provider.

“Shippers seeking to choose an FBAP provider should evaluate these processes significantly as it’s the exceptions that can cause disruption in relationships and services performed by all parties,” he adds.

First and foremost, a provider must be able to manage basic “blocking and tackling” responsibilities, such as taking in freight bills, but he says shippers, especially large ones, should be looking for what other products and services providers have to offer.

“Can a provider do claims management, for instance, or do they have a program that will help facilitate a working capital goal of extending payment terms out, but not in a way that hurts carriers?” Carlson says. “It’s a question of identifying value points.

“Freight payment is a relatively commoditized business,” he notes. “It’s the other services—such as consulting and expertise—that can help a business grow.”

Finding the Best Fit

Ask an array of key questions during the selection process.

Shippers considering providers will want to ask about their IT infrastructure and the security protocols that protect the shipper’s data, Miner says. A provider should have full-time, in-house IT staff and experienced freight auditors for all relevant modes of transportation, among other considerations.

Client tenure is a positive sign.

“Being in this business for years and having tenured clients are good indicators that the provider is worthy of closer consideration,” Matthews says.

Ask for a list of references specific to your industry and geographic region, and poll your carriers.

“A lot of trucking companies have dealt with multiple providers, and they can probably feed you open and accurate information—at least from their viewpoint—about a provider you are considering,” Carlson says.

Investigate the length of service among team members, including the senior management team.

“Is there high employee turnover?” Carlson says. “What is the length of experience at that company? If they are churning through a lot of people within a year or two, it could be a sign of other issues.”

Meet with the provider’s principals and the key staff supporting their operations.

“If you’re going to make an investment in a relationship, get to know people before you sign a contract,” Carlson says. “There’s no business relationship where everything goes perfectly. When a problem does pop up, can you work together as a team to resolve the problem and move forward? That’s a big piece of it.”

Technology, Cost, Trustworthiness

Tech-based tools and how they can serve shippers are also important considerations.

“The real thrust of FBAP business today is actionable information that shippers receive via the web or create from their FBAP provider’s website with ad hoc reports,” Miner says.

Even so, providers must prove their tech capabilities.

“It’s important that the freight audit and payment provider demonstrate their commitment to technology,” Miller says. “Do they offer a modern, feature-rich platform? Do they offer a robust reporting package with dashboard analytics? Do they offer additional capabilities, such as a transportation management system, that can drive additional value?”

Providers must demonstrate they are investing in technology with an eye not only on the present but also on the future.

“Are FBAP providers investing in technology not only for today but for the next three to five years?” Carlson asks. “How well do they understand it? Freight payment providers deliver the most value for clients who have been up and running for a while through data analytics.”

Selecting the provider with the lowest fees could lead to higher costs down the road through higher freight spending than would occur with a provider with higher fees who is more adept at catching overcharges and mischarges.

“Securing a quality service has a marked difference in cost over a bargain service, but price is only part of the overall picture,” Matthews says.

Similarly, Carlson warns against turning the search for a provider into “a pure procurement exercise looking for the lowest cost,” particularly for large, complex enterprises.

“The lowest cost is not always the best, because the question becomes, ‘What am I losing in terms of value?'” Carlson says. “Also, the more efficient and experienced the FBAP, the less your own resources will still need to be involved. That’s very big for shippers.”

Transparency is a critical must-have, and one that shippers should be clear will be part of any provider relationship.

“FBAP providers must offer transparency into data and processes and have the trust of all parties—shippers and their carrier network,” Matthews says. “All parties involved should work to accelerate the velocity of the payment process and eliminate errors resulting in inaccurate information and overcharges.

“The objective,” he adds, “is to get freight bill payment and audit done right and expeditiously.”