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Based on the research of . As a consequence of rising freight costs, an increasing number of organizations has been more proactive in controlling freight cost and have outsourced the freight audit process to freight audit specialists.

Inbound logistics details the freight audit process as follows:

“To begin the auditing process, a freight logistics company receives its clients’ freight bills directly from carriers. When the bills are received, either via electronic data interchange (connect services) or manually, they are entered into the contractor’s system, providing immediate visibility. Once the bills are entered, they are audited for accuracy. Auditors verify the bills’ validity, mileage, duplicate payments, accessorial charges, and use of correct tariffs. After auditing, the charges are coded and reconciled, and the bills are paid.”

Inbound logistics noted that for many companies, outsourcing could be the most economical way to properly audit and process freight invoices. They have also noted that the cost to verify, process and finally pay an internal freight invoice is around $11 and that the cost of outsourcing is around 5 to 10% of the internal cost, . The discrepancies can be as much as .

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