Regularly auditing freight bills is essential to avoid overpaying, and using a transportation management system (TMS) can help shippers save time and money. Separately, both of these logistics solutions are powerful—but when combined, a TMS can increase the value of every freight audit exponentially.
This is especially true when a shipper relies on the same provider for both their TMS and freight audit solutions, ensuring a smoother and more complete flow of data between the two. Here’s why it pays to pair these tools.
It enables more accurate cost allocation
For shippers that have multiple brands or product lines under their umbrella, it isn’t always easy to pinpoint how much each individual business unit is spending. Since shipping costs impact product prices, using an average isn’t a viable option. If one business unit is driving costs up and those costs aren’t properly allocated, this may result in other lines being priced less competitively, hurting sales.
Combining a TMS and freight audit solution gives shippers more tools and data to accurately and dynamically allocate costs—right down to the product level if desired. Staff won’t have to pour over spreadsheets to figure out which business unit moved which freight because the information they need can be pulled up in seconds.
It supports the freight accrual process
A fast and accurate freight accrual process gives supply chain managers more visibility into their freight spend within an accounting period, allowing them to make more informed decisions relating to their budget. But when shippers don’t use a TMS to support their freight accrual process, accounting for every unprocessed and unpaid invoice can be a challenge.
When combined with our freight audit solution, Honeybee TMS™, our proprietary TMS, provides shippers with a clear and up-to-date picture of their freight spend and open liabilities. We deploy powerful pre-rating capabilities and Optical Character Recognition (OCR) technology to ensure that every invoice—even handwritten notes—can be accounted for, so there are no surprises when the final total is inked. This can support a more dynamic approach to product pricing and better decision-making all around.
It reduces invoice exceptions during the freight audit
Using a single provider for both TMS and freight audit needs opens up a wealth of opportunities for collaboration that can dramatically reduce invoice exceptions.
For example, a shipper might work with their provider to implement automatic spot quote validations in the TMS that feed data straight into the freight audit solution, ensuring it’s there when the carrier submits the invoice. When fewer invoice exceptions are flagged, less manual intervention is needed—freeing up staff time and helping carriers get paid faster.
It allows for better insights and reporting
When data is locked in disparate systems, shippers often wind up with a fragmented view of their operations. Compiling data from both their TMS and freight audit solution allows them to track the entire lifecycle of an order—providing richer insights that can drive meaningful change.
Rather than just looking at quoted costs, for instance, a supply chain manager can get a clearer view of what shipments are actually costing them by taking data like accessorial fees and late delivery rates into account. This data can also be easily pulled and parceled into reports for leaders, avoiding the hassle of staff manually hunting down the information they need.
Elevate your freight audit process with a TMS
At CTSI-Global, we recognize the added value that can come from pairing a TMS with freight audit services, which is why we designed our solutions to work in perfect harmony. Separately, they can take a shipper’s operations to the next level—but they’re even better together.
Meet the perfect logistics power couple. Contact us today.