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Freight Audit & Payment

Plain speak: We secure time and cost savings through freight audit, freight payment, and logistics services for shippers. We’re standing by, ready to make your job easier, saving you money and avoiding unwarranted costs  — masterfully and seamlessly.

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Your New Partner in Accurate Freight Audit and Payment

A powerful audit starts with knowing our clients, what they ship, and how they ship it — then creating the highest level of automation possible to accurately and efficiently audit every charge on every invoice. We analyze rate agreements against the carrier freight invoice with laser-like accuracy; searching for any and all discrepancies or anomalies within freight, fuel, and accessorial charges. We audit to the penny unless you tell us otherwise!

By partnering with Trans International, you can expect:

  • Duplicate payment protection
  • Cost avoidance - money you didn't even know you were spending!
  • Improved carrier relationships
  • Laser-accurate audits and actionable analytics
  • Cost reductions you can depend on
  • Time savings you can reinvest

 

Why Are Freight Audits So Important?

Do you know what your freight spend is? Do you know if your freight spend is increasing, and where or why?  Are you validating every charge on every invoice to ensure the charge is accurate, and not a duplicate charge already paid?

Auditing freight invoices can save your company hundreds of thousands of dollars annually, if not more. On average, auditing can reduce freight costs by 3-8%. Auditing also gives you the peace of mind that you’re not spending more than what you should. 

Trans International’s data experts oversee the whole process including key areas that can provide significant cost savings.

1. Duplicate Payments

Avoiding duplicate payments may be one of the most important results of auditing freight invoices. Ensuring solid processes and control measures are in place to capture a duplicate invoice as well as any individual duplicate charges can save millions of dollars each year. We’ve proven it — and more than once!

Regardless of mode of transportation or method of delivery e.g., paper, EDI, etc., duplicate invoicing is a standard practice that our team at Trans International can help you avoid. We've designed a proprietary duplicate payment protection process to ensure you never pay for the same charge twice. 

2. Accessorial Charges

Accessorial charges are the extra fees that carriers add to an invoice for additional services tied to transporting freight. Anticipating and planning for these fees will give you the advantage to negotiate better rates with carriers and mitigate avoidable expenses.

While many accessorial charges are required and allowable, there are still many that are not.  Auditing will protect that only the allowable charges are paid - and paid accurately. Analyzing these charges month over month will also quickly uncover trends and additional potential opportunities to protect you from overspending and further reduce costs and improve efficiencies. 

3. Freight Class

Understanding freight class for all of your products is critical in measuring freight spend, as it can have a direct impact on freight audit payments and costs.

Determined by the National Motor Freight Traffic Association (NMFTA), freight class is assigned by a product’s:

  • Density
  • Value
  • Stowability
  • Handling
  • Viability

Freight class is made available through the National Motor Freight Classification (NMFC), which assigns every shipped item an NMFC code and corresponding freight class.

Every shipped item is assigned an NMFC code and corresponding freight class. If the class is not determined and/or correctly listed on the Bill of Lading (BOL), the shipment made be inspected and rated at a more expensive class. Additional reclassification fees may be charged as well. Some of these additional fees (costs) can be avoided with a few preventable measures!

The Most Common Land & Ocean Transportation Methods

TL - Truckload

TL shipping typically occurs when a company buys a truck for their own use. This is convenient for companies who typically:

  • Ship high volumes
  • Often ship heavier objects
  • Ship across long distances
  • Often ship in bulk
  • Consistently ship 10 or more pallets of the same goods

The TL method generally involves the carrier delivering the truck to your company’s location for the cargo to be loaded. Since driver hours are regulated by their Hours of Service, other drivers may be brought in to continue the transportation, depending on the length of the route.

Truckload shipping is valued for its streamlined process, as the freight changes hands far less often.

STL - Shared Truckload

Not unlike truckload shipping, the STL method allows freight to travel from one destination directly to another in a streamlined process. The biggest difference though, is that STL allows carriers to deliver several shipments at once and has no freight class.

Ideal for 4 to 24 pallets, STL shipping has many benefits including:

  • Reduced carbon emissions
  • Shippers share the cost of the transportation, paying only for the space they need
  • Allows shipments to bypass huds

LTL - Less-Than Truckload

When a shipment won’t fit on a 48 or 58 foot trailer, it will then be considered an LTL shipment. Like STL, shippers will pay only for the space that they need, with the rest of the truck being filled by smaller packages to fill the surrounding space. This makes it a more cost efficient option as opposed to regular truckload shipping.

FCL - Full Cargo Load

FCL shipping occurs when shipments are required to move over an ocean. This basically makes it the nautical equivalent of truckload shipping. When utilizing FCL shipping, a variety of containers are available, ranging in sizes of 20 to 40 feet. These include:

  • Standard dry containers
  • Tank containers
  • Flat rack containers
  • Collapsible flat rack containers

While these containers will often carry a variety of shipments, it is important to also consider a partially full FCL, as the lack of handling or consolidation fees make this a more cost effective option. Furthermore, FLC items are less likely to be damaged or lost during transit.

LCL - Less-Than Cargo Load

LCL is similar to less-than truckload shipping in that the shipper will pay only for the space in the container that they need. Once the size of the shipment is measured, the shipping company will determine a fee, making this the more inexpensive option for ocean shipping. It’s also more flexible, as it allows the shipper to send anything they want.

That said, it is important to consider that the shipper has little to no say regarding any other cargo being carried in the container, and because other shippers are using the same container, there may be unavoidable delays in the shipment.

While these are the main transportation methods, they can also be utilized for other transportation methods. For example, trains and planes will often carry TL freight as opposed to FCL. Understanding each method is the key to ensuring your shipments are delivered in a timely manner without having to overspend.

Are you trying to determine your shipping class or method? Let the experts at Trans International help you by contacting us today!

FREIGHT PAYMENT OPTIONS AND OPTIMIZATION

Fast and accurate, our payment options and optimization tools greatly reduce invoice processing times and costs ensuring your carriers are paid accurately, and timely, while giving you full visibility to data and accruals.

We strive to process invoices at the highest level of automation possible to increase efficiency and reduce cost. Automated invoices can be inline for payment as fast as 2-3 hours!

Proactively managing the bill flow process and working directly with the carriers guarantees nothing falls through the cracks. The result builds better carrier relationships and means no surprise large accruals you didn’t know about!

Our software features include:

  • Custom-built solutions
  • 90% EDI processing
  • OCR technology
  • TMS/ERP Match Process
  • AutoRater: 85% invoices rated through automated rating engine
  • AutoCoder: GL Code applied through automated coding engine
  • Multilayer duplicate & overpayment protection
  • Accessorial Tracking and Trending
  • Carrier/Plant Scorecards
  • Interactive, Web-Based BI Dashboards
  • Web-Based Ad Doc Reporting
  • Carrier Invoice Reconciliation

Trans International is dedicated to building partnerships with our clients, reducing freight costs and saving valuable time, while providing full data visibility and logistics expertise.  Creating an automated and streamlined bill flow process improves carrier relationships and guarantees peace of mind! For inquiries or further information, please contact our Sales Team at innovations@ticominc.com, or by calling (262) 253-3500.