5 Tips For Understanding The Freight Audit Process – 2021 Guide

For most logistic organizations out there, dealing with freight invoices is, perhaps, one of the most daunting and complex processes. However, reviewing them is extremely important, especially since there could be some mistakes that in the invoices, mistakes that could end up costing the shipper hundreds, if not thousands of dollars.

Because of this, most companies will utilize a freight auditing program that can ensure consistency in the bills. But, what are these programs? What does the whole auditing process look like? Luckily for all people that are asking themselves the same thing, the guide below can help. Let’s look at our 2021 freight auditing guide:

Freight Auditing: Explained

Before we can look at the tips that could help you understand the whole process, it’s important for you to learn what freight auditing actually is. These particular programs of balances and checks will enable any shipper to review all the invoices for any mistakes. Now, you need to know, the process will require several steps that’ll ensure that all the points of the invoice are reviews, and this includes the following things:

  1. Verifying All The Information – though most individuals don’t realize it, it’s very common for a shipping bill to feature the wrong name of the carrier, which implies that the wrong organization can get paid
  2. Verifying The Weights And Charges – now, most firms will operate ethically, however, there might be weight and charges info that is inaccurate. By reviewing the bill, these mistakes could be corrected.
  3. Verifying The Distance – lastly, another common mistake is the inaccuracy of the distance for transporting different products. A freight audit will ensure that it matches other documents.

So, What Tips Can Help Me Understand it Better?

In order for you to understand more about the entire freight auditing process, you’ll have to first understand what it entails. This won’t only help you comprehend what it is, it’ll also help you, later on, if you decide to implement the auditing system into your organization. Hence, some of the key things that you’ll need to focus on if you implement the system include the list of following methods:

  1. Like Everything, You’ll Need a Strategy

Before you even think about implementing such a system within your organization, you must ensure that you have a suitable strategy. This means that you’ll have to clearly define the purpose. So, if you understand why this program is being implemented in the first place, you’ll be able to manage it properly, and you’ll also guarantee that you decrease the expenses you’ll have. This is why you should ask yourself several questions, including:

– Why do you need it in the first place?

– Why should your company implement it?

– How will it improve your revenue?

– How will it assist your clients?

  1. Communication is The Key to Everything

If there is one key thing that you must take away from this particular list, it’s the fact that your auditing might interfere with other supplying and carrier companies. Though it’ll essentially belong to your firm, it will involve other ones as well. To go through the process properly, you’ll need to gather info from your partners, which will often take a lot of time and resources. This is why you should make sure that you’re communicative and flexible, especially when it comes to explaining how they can benefit from the program as well.

  1. Regulate Your Expenses

Similar to how you need to communicate with your partners, you must also regulate the expenses you have. This suggests that you’ll need to set various rates, as well as limits that’ll make the entire process more affordable and cost-efficient. By standardizing and regulating all the costs you have, you’ll be able to predict the expenses you’ll have. Hence, you’ll know exactly what you need to do and improve to cut costs.

  1. Being Honest And Transparent is Necessary

Your freight auditing must, I repeat must be honest and transparent. What does this imply? Well, you’ll be monitoring and analyzing your transportation expenses, which suggests that your employees will also be involved. If you opt for making the audits and payment system transparent, you can guarantee that you can work with your staff in order to implement beneficial changes, but more importantly, you could make sure that your organization grows and thrives.

But, besides this, choosing a particular company such as that you’ll work with will make your staff members feel involved in the whole process – which is something that could easily increase their productivity and focus. After all, they’ll learn what you’re planning on implementing, thus, they’ll understand why those changes have to be made. This will improve your communication with them as well.

  1. There is Nothing More Significant Then Automation

Last on the list, but definitely as essential as everything else we talked about is the fact that you need to guarantee that you choose an automated system, instead of you or your employees doing everything manually. Why do you have to opt for this? Well, it’s quite easy to understand – it’s more affordable and efficient, and it can, in most cases, be customized, meaning that you can get something that has been fully personalized to suit your organization’s needs and requirements.

Besides the features we mentioned, these programs have algorithms that’ll allow you to quickly generate reports, meaning that it’s the simplest and quickest way for you to learn where you can cut costs, as well as what you might need to improve. Also, you’ll be able to save a lot of your budget when it comes to the goods being sold, and you won’t need to worry about making any mistakes, mostly because they’ll be corrected by the auditing program.


Whether you run a small, medium, or large logistics organization, one of the most crucial things that you can implement is a freight auditing system. By doing so, you’ll be able to gain a wide range of benefits, all of which could help you grow and improve your organization.

Hence, now that you understand the processes that this type of auditing entails, as well as what you’ll have to focus on to make it work, don’t waste time. Instead, start looking for an organization that’ll provide you with a system that’ll suit all the requirements and needs your organization has.

Ricardo is a freelance writer specialized in politics. He is with from the beginning and helps it grow. Email: richardorland4[at]