Prioritizing Transparency and Accuracy: The Value of Audit Reporting

Rising transportation costs and shrinking margins led FedEx to command new late payment charges (LPCs) valued at 6% of an outstanding invoice. The announcement caught many shippers by surprise, particularly those using outdated payment and auditing methods. Suddenly, shippers had to navigate a new challenge—not to mention a costly one—amid ongoing disruptions to the supply chain.

But with this problem came an eye-opening realization: Auditing invoices is increasingly essential for accurate and prompt payments-especially considering how new LPCs could affect transportation budgets. In order to minimize future charges, find more accurate projections about transportation budgets, and make more informed business decisions, shippers needed a more efficient system—one that could keep up with the ever-evolving logistics industry.

Responding to unprecedented challenges with new solutions

Although many shippers use manual managing, tracking, and auditing reports, this process leaves plenty of room for human error. In an increasingly digital world, a manual method isn’t sustainable either. Artificial intelligence, however, makes it easier for clients to automate and monitor invoices, providing the visibility they need to resolve disputes effectively and efficiently.

Following FedEx’s announcement, CTSI-Global acted quickly by rolling out a dispute reporting module. The freight audit and payment system module identified erroneous late payment charges billed to contractually exempt customers. Without a freight management system, these unnecessary charges could have been missed and overpaid.

Typically, clients could opt to autopay all their FedEx invoices through our freight audit and payment system. Once the new module was released, clients could still opt to autopay, but the system would pay $0 toward the late fees for all exempt carriers. It can also initiate a dispute directly for any incorrect billing or late payment charges. Clients also receive weekly updates to determine whether late payment charges are applied. If so, they can follow up with FedEx to minimize future mistakes.

Leveraging data to drive meaningful change

Developing annual spending projections and budgets can be challenging without the correct data on hand. For the unfortunate shippers who are not exempt from FedEx LPCs, real-time late payment charge billing information can be accessed through the CTSI-Global dashboard.

Our team works closely to identify ways to mitigate late payment charges in the future. Often, it’s a matter of a disorganized process of manually verifying the information and trying to keep track of numerous invoices. Freight audit and payment systems are an excellent solution to avoid late payment charges altogether, as invoices are automatically logged, verified, and promptly paid as they arrive.

Detailed analysis through Strategic Data helps shippers manage all aspects of a shipment—from order creation and tracking to delivery status and advanced KPIs. Intuitive and fully customizable dashboards and reports put over 60 years of logistics expertise toward your success. Drilling down to KPIs and carrier performance metrics using a cutting-edge application reveals where discrepancies lie and opportunities exist without wasting time digging around.

Finding a true partner in the process

Unprecedented challenges are the name of the game in logistics. Yet, a partner like CTSI-Global can help you navigate transition periods with ease by providing the right technology and support for your needs.

Busy professionals can access actionable information in various ways, whether on paper for a board meeting, through the central dashboard via web or mobile app, or weekly emails. Learn more about how proprietary freight management technology can boost supply chain efficiency through in-depth reporting and automation. Contact us today to get started.