Why internal controls in the billing process are important?
Many established shippers these days require that invoices from carriers be entered into their portal. The information is then electronically analysed and discrepancies with PO/Rate confirmation can be immediately identified. This reduces the time needed to review and process individual invoices, this process however does not entirely eliminate the risk of processing errors.
The designated staff maybe tasked with the responsibility of processing higher volume of invoices, but certain internal controls within the system must still be instituted to avoid override of controls.
The controls established within these systems, i.e., parameter to override certain discrepancies may still exist and therefore to manage the risk of inappropriate or unauthorized approval of additional charges, certain controls such as requiring the need to perform daily reconciliation of issued POs against invoice total is still a necessity.
Application of Data Analysis
Performing freight audit using another external firm, maybe deemed a practical option, but it may not present the perfect long-term solution towards reducing and eliminating entirely the risk of errors in freight invoice processing. Shippers should consider using its IT platform and attempt to perform review and checks on all invoices to eliminate the possibility of errors through use of data analytics and trend analysis.
Comprehensively utilizing the data stored within the transportation management system can potentially provide huge commercial value and savings to the shipper. Shippers can immediately gain visibility of cost and margins on a given lane based on real time data and this would help shippers make better decisions in term rates when negotiating with customers.
What we offer
Here at Freight Analytics, we recognised the importance of having a strong data analytical approach to managing your daily processes and you can be assured that the assigned staff would attempt to best utilize the data stored within your transportation system to provide your firm insightful analysis of both financial and operational performance on a real time basis.
