On average, one in four freight shipping invoices contains some kind of error that impacts a company’s bottom line. Depending on the size of the supply chain, that could be hundreds of errors every single day. And if the errors aren’t caught and rectified in a timely manner, the company might as well be throwing money away.
Outsourced freight audit and payment (FAP) services can help companies catch invoice errors—without dedicating countless hours to manually sifting through invoices in-house.
Good FAP services ensure the right amount is charged, received, and reported every time. But a truly great vendor offers more than accuracy alone. Here’s what shippers should pay attention to when choosing an FAP provider that will support them year after year.
FAP vendors are trusted to handle a company’s money. As such, they will ideally follow the auditing standard outlined in the Statement on Standards for Attestation Engagement no. 16 (SSAE 16).
This standard is more common among North American vendors; international companies may follow the International Standard on Assurance Engagements (ISAE) 3402 auditing standard instead. Some organizations may also still be using the Statement on Auditing Standards no. 70 (SAS 70) standard, although SSAE 16 is more recent and more comprehensive.
Why does this matter? Compliance with these standards means an FAP provider operates under a system of rigorous controls, so asking whether they are certified is a good first step. If they’re not, find out which systems they use to ensure quality and reliability.
Business intelligence and reporting capabilities
The true value of automated invoice processing and tracking isn’t just keeping costs low. It’s data.
The best FAP services arm managers with real-time data. This allows them to make strategic pivots to support long-term growth.
Negotiate better freight terms and rates with carriers. Maximize shipping routes. Plan and predict future freight costs. When a company can pull up years of detailed shipping information in an easy-to-read dashboard—complete with rates, hold charges, hidden costs, and systematic errors—strategic planning gets a whole lot easier.
History and relationships
Choosing an FAP provider that is not financially stable invites delays and headaches. A track record of success is an important consideration, and a company’s longevity can speak volumes about its reliability.
At CTSI-Global, for example, we’ve been in the business for over 60 years. We saw many of our competitors crumble during the Great Recession, while we came out stronger than ever—enabling us to provide the best possible service to the companies that partner with us.
Years in business can also translate to stronger relationships with carriers. When carriers have had a positive experience with an FAP provider that ensures their bills are paid on time, this can ultimately strengthen the relationship between the carrier and the shipper.
The experts in freight audit and payment
Choosing the right freight audit and payment provider doesn’t only ensure accurate invoicing and reporting today. It provides valuable insights into future freight spend that can help companies cut costs tomorrow.
CTSI-Global processes more than 5 million freight transactions every day—totalling over $12 billion worth of freight every year. We believe every one of those shipments is an opportunity to save our customers money, whether we’re catching an error that would otherwise go unnoticed, or simply freeing up their team to focus on more important matters.
Make the most of freight audit and payment services. Contact the Freight Audit & Pay experts today.