Some of our clients didn’t think they needed to do Freight Invoice Checking, they were happy with the internal controls however this changed after the process had been completed..
Some of the reasons for their change of heart was the identification of overcharges, duplicated transitions, transactions that were not covered by contracts, and the cost associated with incorrect service and carrier selections by their supply chain teams.
The Factor Freight business model involves assisting large freight users to administer their freight invoices. This involves the collation of invoice data from different providers and internal shipping information. These data sources contain varied formats that seem to change very often.
The business invested in data cleansing and formatting tools and processes that enabled all of this information to be consolidated effectively to support price validation and cost allocation. During this process, key fields such as sender / receiver zones and different services are harmonised and the result is powerful databases that support great BI reporting covering:
- Financial Analysis & Spend Patterns
- Freight Operations Management
- Non Complying transaction reporting
- Weekly / Monthly KPIs
- Activity-Based Costing
- Consignment Checking