A new freight auditing and payment system (FAP) can help fleets reduce total freight spend and/or eliminate the need for third-party freight audit firms, said Softeon.
FAP from Softeon supports parcel, LTL and full truckload shipments, and can rate and audit freight bills across several dozen attributes and accessorials, performing a three-way match between a company’s own shipment information, proof of delivery information, and the carrier’s freight bill.
Softeon said that its FAP allows companies to use the same type of sophisticated software that some third-party audit firms use to identify carrier errors and overcharges. Studies have found such errors and overcharges can represent 2-3% of a shipper’s total freight spend, Softeon said.
Shippers can also benefit by identifying, documenting and reporting on all the overcharges, such as a parcel carrier missing its delivery commitment for a given class of service, a truckload carrier miscalculating accessorial charges, or an LTL carrier misclassifying freight.
Softeon’s FAP is a component of its Transportation Management System, which provides broad and deep functionality across shipment planning and execution, parcel management and more.
Advanced capabilities of FAP include:
- Revenue and cost allocation to the SKU level to more accurately calculate cost of goods sold (COGS).
- Shipment tracking and customer service capabilities to measure carrier billing and delivery performance.
- Rich analytics such as detailed freight spend and volume analysis, plus a broad array of pre-packaged internal and carrier KPIs.
- A revenue margin management tool for 3PLs that enables then to monitor control buy-sell costs for freight and keep them within specified margin parameters.