The shipping industry is ever-changing, costs are rising, and data is ESSENTIAL to the modern supply chain. There are huge efficiencies to be gained by outsourcing freight audit to industry experts. In addition to some of the obvious benefits, such as time savings and cost control through proactive audit, there are distinct technological and reporting advantages as well. With real-time data insight and increased visibility, Supply chain executives will have the tools needed to address 3 critical components of transportation spend management:
- Budgeting & Forecasting
- Shipping Optimization
- Strategic Carrier Negotiations
Over 75% of all carrier freight invoices contain some type of discrepancy, resulting in a 10% or more loss to the shipper due to overpayments. Overall, an efficient freight invoice management program can be quite invaluable.
LTL stands for “less than truckload” shipping. It refers to the process of transporting pallets of product that require partial but not full space in a freight truck.
Small parcel shipments are smaller packages (weighing under 150lbs) shipped in self-packaged or carrier-supplied boxes that move through a small package shipping network with carriers such as FedEx, UPS, Courier, or DHL. These shipments are pallet-free.
Also known as small parcel or package audit- Parcel audit is the process of scrutinizing carrier invoice data for erroneous charges and other potential billing mistakes.
Similar to parcel audit- LTL freight audits examine the accuracy of a carrier’s LTL invoice; with the main intent of having the carrier correct any invalid charges.
3PLs leverage different modes and carriers to best fit a client’s transportation strategy and logistical requirements while auditing the associated costs at each step of the way. 3PLs are strategic and able to utilize 1PLs & 2PLs as needed to achieve the best on-time performance and lowest rates.
LTL “Less than Truckload” carriers utilize a network of hub and spoke centers to move freight. Often this mode ships the freight of multiple customers within a single trailer. There is also a linehaul component of LTL which is the segment that moves the freight from center to center. The destination LTL center will handle delivery within an area and uses pup trailers, straight trucks, liftgate trucks and liftgate trailers. Origin centers will pickup freight and route to the proper destination center for delivery.
FTL “Full truckload” will utilize the entire trailer and do not typically share space with different customers. Truckloads move the freight from origin to destination directly (unless warehousing is required). Since no intermediate centers are involved with this mode, FTLs are responsible for pickup, linehaul and delivery.