Navigating your company’s transportation expenses effectively is important for maintaining profitability. Your choice of a freight audit and analytics provider is integral in this process, as they help uncover duplicate charges, eliminate overpayments, and secure the best rates from carriers. Yet, managing shipping costs is just the tip of the iceberg when it comes to enhancing profitability. Modern enterprises require more—insightful, actionable intelligence that spans the entire supply chain.
Today’s advanced freight audit solutions offer comprehensive visibility and equip various teams—from operations and logistics to the executive and finance teams—with the data and tools necessary for making informed decisions swiftly. If your current provider is still relying on outdated technology, your bottom line might be suffering. Perhaps it’s time to consider whether you should be auditing your auditor.
Here are three critical aspects to evaluate when auditing your freight audit provider:
Technological Innovation
Your provider should be at the forefront of supply chain technology, incorporating advancements such as artificial intelligence (AI) and machine learning (ML). These technologies have the ability to process vast datasets, identifying patterns and optimising shipping strategies to lower costs through measures like consolidation. AI also enhances predictive analytics, helping you align better with customer demands and reduce distribution expenses.
It’s advisable to inquire about your provider’s future technology roadmap. Understanding what technological capabilities, they plan to integrate over the next 2-5 years can reveal whether they’ll continue to meet market demands and keep you competitive.
Analytical Capabilities
A glance at your provider’s marketing resources and website can indicate their focus areas. If they emphasise error detection over robust data analytics, they may not be fully equipped to provide the insights necessary for strategic decision-making. Effective freight audit and analytics tools should offer customisable dashboards that not only detect billing inaccuracies but also provide insights into overall expense management and the impact on the cost of goods sold.
The best solutions facilitate strategic supply chain improvements by allowing you to monitor key performance indicators (KPIs) and adapt strategies based on real-time data, ultimately enhancing supply chain efficiency and profitability.
Business Collaboration
An ideal freight auditor acts as a strategic partner rather than just a service provider. They should support your business improvement through continuous collaboration, offering tools like scenario modelling and process optimisation. This partnership approach includes providing tailored reporting and analytics to help you manage every aspect of your supply chain effectively.
If your current auditor is not meeting these needs with proactive support and customised solutions, you might be missing out on critical opportunities to streamline operations and enhance profitability.
As the landscape of global commerce evolves, so too should your relationships with key service providers. Regularly reassessing your freight audit and analytics provider ensures that you’re not only keeping up with industry standards but also gaining a competitive edge in an increasingly complex market.
