Freight Payables

Certain errors are common to freight billing. Being aware of what they are and taking steps to prevent them can positively impact your bottom line. Following are the errors, their causes and consequences, and corrective or preventative measures to take. 1) Unreported/unrecognized account set ups Cause: A new account is set up with a… Read More

Payables Outsourcing: Freight Bills "Big business … will not necessarily be the one that employs a great many people. It will be the one that has substantial revenues and substantial results - achieved in large part because it itself does only work that is focused on its mission; work that is directly related to… Read More

Many companies outsource their freight payables to a third party logistics firm. This practice allows shippers to focus on their core business objectives while having confidence that their freight bills will be paid. At least that is how most outsourcing agreements go. In the rare instance when a shipper's logistics broker fails to pay… Read More

What Makes a Freight Bill Unique? Outsourcing Versus Automation Access to Information Auditing Payment Outsource or Automate? Outsourcing payables functions can be an effective way to improve efficiency while reducing operational costs. Hiring a third party to manage payment processing allows the buyer to focus more resources on core business functions. Freight audit and… Read More

Freight Claims: The Basics Automating Claims Handling Solving Problems with Carriers The Cost of Claims No shipper looks forward to filing a claim against a carrier. The process takes several weeks, requires shippers to present a variety of documentation, and can become expensive the longer it's drawn out. However, filing freight claims is a… Read More

The price of fuel accounts for between 4 percent and 39 percent of freight costs. As fuel prices fluctuate, so too do fuel surcharges. With freight bills so closely linked to fuel costs, it's important for shippers to be aware of frequently-changing fuel prices. Every Monday, the U.S. Energy Information Administration releases detailed statistics… Read More

This is a companion piece to the feature Gaining the Upper Hand in Rate Negotiations Negotiating freight rates puts shippers and carriers in a unique position. While the word "negotiation" conjures images of two opposing sides contentiously working to a resolution, freight rate negotiations seldom reach this level of drama. In many cases negotiations… Read More

What Rates are Negotiable? The Negotiation: How it Works Starting Out Strong Working with Carriers Bringing Down Costs The Negotiation:The Results Negotiating shipping rates with carriers is a vital way for businesses to ensure they are comfortable with their freight bills. Since almost all freight charges are open to negotiation, shippers should be regularly… Read More

The Front End Keep track of paper invoices as they arrive – log them, stamp them, batch them, image them. Ask carriers that send paper bills to use a trackable shipping method. Keep track of electronic invoices as they arrive – log the file ID numbers and create a procedure to deal with duplicate… Read More

If one of your vendors was inflating shipping charges, would you be able to detect it? Would your automated freight payment system flag the error or approve it for payment? While in most cases automated payment solutions do an excellent job of alerting businesses to potential fraud, a lack of sufficient controls can undermine… Read More

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