Why Do Shippers That Use a TMS Outsource Freight Audit to a Separate Firm?

Shippers that use a transportation management system (TMS) know how much of a game-changer this technology can be. The efficiency gains and cost savings can utterly transform supply chain operations, turning the logistics function from a cost center into a lean, high-performing machine. But there’s one area that most TMS software falls short in, and that’s freight audit functionality.

As a result, even though shippers can use their TMS for some freight audit-related tasks, many choose to outsource auditing to a separate firm instead. So, why is this happening—and is this really the best approach?

Freight settlement modules leave a lot to be desired

Most TMS software comes parceled with a freight settlement module. This is designed to minimize the labor-intensive burden of manually auditing and paying invoices, which is simply not a good use of employees’ time. But the freight settlement module is only a marginally better solution, lacking the features, functions, and configurability that third-party auditing can provide.

For one thing, many shippers only use their TMS for domestic freight. If they’re exclusively using their TMS for freight auditing, then international shipments are slipping through the cracks, potentially resulting in a goldmine of savings going unnoticed. This also creates a glaring gap in a shipper’s visibility, making it difficult to make smart decisions about their freight spend.

Coding can also be an issue. Shippers that have complex coding requirements may struggle to get what they need from their TMS when it comes to freight auditing—especially if the system turns out to be white-labeled software that the vendor is unable to help with.

In comparison, the level of sophistication that freight audit specialists provide is off the charts. And since they can audit 100% of invoices—including domestic, international, and third-party shipments—no opportunity to save is overlooked, and no black holes in visibility are created.

Pre-invoicing and self-billing features can sometimes do more harm than good

Another issue that can come from using a TMS for freight auditing and payment is the potential for pre-invoicing and self-billing features to cost shippers more money than they really need to be spending. Based on what a carrier said a shipment would cost, a TMS with these features will automatically issue payment. That eliminates the need for an extra step in the process since no one will need to review an invoice and manually issue a payment.

Convenient? Sure—but not when this approach means that shippers stop auditing their bills. Without performing a freight audit, shippers are left to blindly assume they’re paying the right rate, which can often lead to needless overspend.

Entrust the freight audit to a firm that does both

When companies already using a TMS are forced to turn to a separate company for an accurate freight audit, something is clearly broken. We’re here to change that.

At CTSI-Global, we’re not just a freight audit company—and we’re not just a TMS company, either. We understand that logistics operations don’t exist in a vacuum, which is why we design all our solutions with the entire supply chain ecosystem in mind.

Our powerful TMS and freight audit solutions work in tandem with each other, providing unparalleled visibility and leaving no rock unturned on the quest to save you money. We deploy a 360-degree rating process when auditing, ensuring that invoices are compared against real-time pricing and negotiated contracts—so you never pay more than you should. And since our solutions are built from the ground up, we’re able to configure them to meet your specific needs because we know that one size does not fit all.

Discover a better way. Contact us today to get started.