Freight Payables

15 Common Freight Billing Errors

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 preferred... Read more »
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Outsourcing Freight Bills

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 its... Read more »
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Shipper or Broker: Who is Liable in a Dispute?

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 freight... Read more »
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Streamlining Freight Payment: Outsource or Automate?

What Makes a Freight Bill Unique?Outsourcing Versus AutomationAccess to InformationAuditingPaymentOutsource 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 payment is one of the most... Read more »
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Claims Handling: Making the Best of a Bad Situation

Freight Claims: The BasicsAutomating Claims HandlingSolving Problems with CarriersThe 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 necessary part of doing... Read more »
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National Average Fuel Cost

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 on... Read more »
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Rate Negotiations: A Carrier’s Perspective

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 are... Read more »
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Gaining the Upper Hand in Rate Negotiations

What Rates are Negotiable?The Negotiation: How it WorksStarting Out StrongWorking with CarriersBringing Down CostsThe 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 discussing their rates with carriers. However,... Read more »
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Freight Audit and Payment Best Practices — The Basics

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 or... Read more »
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Million Dollars to Ship a Washer: Are Your Controls Tight Enough?

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 that... Read more »
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