Freight auditing is an essential process for companies that rely on shipping services to transport goods. The purpose of freight auditing is to identify and correct errors and discrepancies in freight bills to ensure that companies are not overcharged for shipping services. In this article, we will discuss the most common types of errors and discrepancies that can be identified through a freight audit.
- Overbilling:
Overbilling is one of the most common errors that can be identified through a freight audit. This occurs when the shipping company charges more than the agreed-upon rate for a shipment. Overbilling can occur due to a variety of reasons, including incorrect weight or dimension measurements, incorrect rate application, or inaccurate accessorial charges.
- Duplicate Charges:
Duplicate charges are another common error that can be identified through a freight audit. This occurs when the shipping company bills for the same shipment multiple times. Duplicate charges can occur due to human error, such as double-entry of data or system glitches that result in billing errors.
- Incorrect Classifications:
Incorrect classifications are also a common error that can be identified through a freight audit. This occurs when the shipping company assigns the wrong freight class to a shipment. This can result in overcharging or undercharging for shipping services, depending on the actual weight and dimensions of the shipment.
- Carrier Errors:
Carrier errors refer to errors made by the shipping carrier, such as missed pickups or delivery delays. These errors can result in additional charges or penalties for the shipper. Through a freight audit, carrier errors can be identified and addressed with the carrier to ensure that they are corrected.
- Incorrect Accessorial Charges:
Accessorial charges refer to additional charges for services such as liftgate delivery, residential delivery, or inside delivery. Incorrect accessorial charges can be identified through a freight audit, as they can be charged for services that were not actually provided.
In conclusion, freight auditing is an essential process for companies that rely on shipping services to transport goods. By identifying and correcting errors and discrepancies in freight bills, companies can ensure that they are not overcharged for shipping services. The most common types of errors and discrepancies that can be identified through a freight audit include overbilling, duplicate charges, incorrect classifications, carrier errors, and incorrect accessorial charges.