Did you realize your company pays an extra thousand, ten-thousand, or one hundred-thousand dollars annually in shipping?
You might also be surprised that company executives will read this blog and think they have the right recipe in-house to start recovering these unnecessary costs. Unfortunately, in-house solutions require technology to scale the effort; these applications may cost companies tens-to-hundreds of thousands of dollars to deploy and maintain. Any way you slice it, you simply need a better mouse trap.
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For those who want to know more, allow me to indulge you.
Thousands of companies today realize the tremendous benefit of having their carrier invoices reviewed for accuracy. The best audit firms have invested millions in human capital and technology with upwards of 300 employees dedicated to this effort. They do the heavy lifting; you reap the results.
It’s really very easy to save major cash with Freight and Parcel Audits. If you’re still not convinced, here are three factors you have to consider:
For more than 50 years, companies have relied on audit firms to recover money on their behalf, with annual audit returns of 1-6%. Audit firms such as AFS have logged hundreds of millions in savings since 1982, helping more than 2,500 companies during that time. All companies have the potential for big refunds. Your chances increase incrementally if you use several vendors; again if you sell multiple product lines; and yet again if you use numerous carriers.
Finding billing or delivery errors is no small feat when you have hundreds or thousands of shipments to review each week. Even if you find an error, attempting to recover the money on your own is costly. Carriers require you know the rules and provide the right backup to prove the error. Using an audit firm gives you the advantage to leverage their carrier contacts, knowledge of the procedures, and experience in collecting the refunds. In 2013, AFS collected more than $25M. Experience in recovery literally pays dividends.
It never hurts to get a second opinion. With only a handful of Freight and Parcel Audit firms out there, you have the additional opportunity to optimize your shipping patterns and even further reduce costs. Examples of shipping optimization include moving Air shipments to Ground, consolidating multiple packages into a single shipment, and ensuring you utilize your best carrier option and service level every time to fit your needs and maximize your budget.
If your company ships and pays for more than 130 packages per day and doesn’t have this service (remember, internal employees aren’t enough), you’re leaving significant money on the table.