As supply chains grow more complex and cargo volumes swell, freight invoicing errors have become one of the biggest drains on shipper’s bottom lines. Discrepancies in bills of lading, incorrect demurrage and detention charges, and errors in weight and measurement charges are all on the rise, causing endless headaches.
In some cases, these inaccuracies are an inevitable result of human oversight, mismatched systems, and the complex nature of ocean freight invoices. However, recent events show that, more often than not, ocean freight invoicing errors may not be so innocuous. According to a report by Supply Chain Brain, since 2022, the US Federal Maritime Commission has received complaints accusing all ten top ocean carriers of price gouging and unethical practices. Even carriers admit that ocean freight invoicing errors are widespread and that curbing them represents an ongoing organizational challenge.
Addressing the post-pandemic surge in ocean freight invoicing errors will require optimizing the auditing processes with updated procedures and the right technology to enhance visibility and identify deviations from agreed carrier terms and rates with greater precision.
Invest in the right technology
Real-time insights, event monitoring, and analytics enhance visibility across operations and shipment lifecycles. CTSI-Global’s Honeybee TMS features powerful claims and event management capabilities that enable shippers to access and review critical shipping documents like bills of lading, customs declarations, and invoices. Should any discrepancies arise, automated workflows route claims to the appropriate parties for efficient review, approval, and resolution.
In addition to swift and effective resolution of freight invoice discrepancies, the Honeybee TMS’s reporting and analytics tools offer the data to take proactive measures and prevent similar future incidents. Everything that’s needed to spot trends, identify problematic carriers, and inform corrective action is available on one centralized platform, from insights into the nature and frequency of claims to details on reimbursements.
Implement regular audits
Frequent scrutiny of invoices, contracts, and supporting documentation ensures billing errors are identified and addressed promptly before they impact shippers’ bottom lines. But beyond error detection, regular audits are key cost control measures that promote greater accountability and enhance operational efficiency. Regular audits reduce administrative burdens, mitigate financial and operational risk, and encourage stronger carrier relationships by preventing invoicing errors and disputes.
For example, when carriers know invoices will be subject to careful audits, they are more likely to submit accurate information to avoid costly claims processes and preserve trust. Regular audits often reveal patterns and recurring issues, allowing shippers to identify areas where their procedures may be prone to errors. These insights can lead to process improvements, cost savings, and enhanced operational practices.
Auditing is simplified with the Honeybee TMS with data on everything from negotiated rates and contracts to invoices accessible on one centralized platform. Auditors can quickly identify discrepancies and errors by comparing invoiced numbers with agreed-upon rates and matching invoices with related documentation, such as bills of lading and proof of delivery. A comprehensive digital audit trail helps maintain detailed records of auditing activities, making it easier to trace and investigate issues.
Partner with trustworthy carriers
Reputable carriers have well-established procedures and systems to ensure accurate invoicing and adherence to agreed-upon terms, reducing the need for extensive and frequent auditing. The associated administrative and financial burdens associated with these processes are also reduced. When discrepancies occur, a trustworthy carrier is much more likely to cooperate with shippers to resolve the issue fairly and promptly.
Another benefit of partnering with carriers that prioritize accurate invoicing is financial predictability. Transportation costs can be anticipated more effectively, making budget planning more accurate. Fewer invoicing errors means fewer disputes and payment delays, resulting in a smoother and more efficient operation.
The Honeybee TMS’s reporting and audit trail capabilities help companies keep tabs on general carrier performance and their handling of freight claims. Decision-makers can leverage these insights to identify high-performing partners, take corrective action with any underperformers, and inform decisions on future partnerships.
Keep ocean freight invoice errors from reducing profits
With invoice errors at peak levels, finely-tuned resources and procedures will protect operations and bottom lines. CTSI-Global’s Honeybee TMS equips companies with a powerful suite of supply chain management tools designed to provide the data they need to identify invoicing discrepancies and take proactive measures to avoid them in the future.
Contact CTSI-Global to learn how our software tools can help run a smarter and more efficient operation.
