Small-Parcel Auditing Do's and Don'ts

When I inquire why they aren't auditing or altering their procedures or auditor, I frequently receive the following responses:

o "We just don't have enough assistance,"

o "Our prices are way too confusing," says the narrator.

Alternatively, one of my personal favourites:

o "Our carrier claims that their on-time performance for our account is 99.9%, therefore we didn't think it was necessary."

Transportation expenses are at the top of everyone's priority list these days, so if you can connect to one or more of these responses, it's time to rethink your strategy. In January 2009, UPS and FedEx announced the highest rate rise in company history. If you aren't already auditing, or reviewing your systems or procedures, the first invoice you got with these increased rates should have offered more than enough motivation.

So, to get you started, here are some SMALL PARCEL AUDITING DO'S AND DON'Ts. If you're already auditing, take a look at what you've done so far and compare it to what you're doing now. Let's begin with the most crucial.

DO THE AUDIT:

Any level or type of auditing is preferable than none at all.

Carriers nearly always make mistakes in their favour, and every package must be recorded and analysed to correctly identify these faults. Traditional freight auditing and payment systems frequently fall short in this area.

Initial outside audits should always be free since they provide the service a chance to show what they can accomplish for you. There should never be any upfront or setup fees, and apart from convincing the carriers to send you electronic invoicing (which they will gladly do since it saves them money), there should be little or no upfront or continuing work for you to perform.

DON'T TRY IT ON YOUR OWN:

Farm the procedure out unless you're in the small parcel shipping company and have infinite IT resources, a staff person whose primary responsibility is to keep up with the carriers' continuous adjustments, and a support staff committed to bringing in the refunds and credits. Because they aren't compensated until the claim has been refunded to the shipper, third-party auditing is incredibly cost-effective. Their fees are normally a percentage of the credited amount that is actually refunded that is agreed. Is there no money back? There is no bill. As a result, you may rest assured that they will maximise your refunds and savings.

If you're doing internal auditing in-house, be sure your investment in resources and cash is auditing off. Anyone who has ever conducted an internal audit understands that submitting a claim to a carrier is merely the beginning of the process. You'll need to be dedicated and anticipate to have to resubmit claims denial after denial in order to receive all of the refunds that you are entitled to. Wait till you hear all of the reasons why your late shipment claim was refused by the carrier if you thought there were a lot of reasons why shippers aren't auditing. The carriers understand that if they refuse a claim, you are unlikely to have the time or resources to pursue it further.

DON'T WAIVE YOUR RIGHTS TO REFUNDS FOR LATE PACKAGES: (or any other auditable charge for that matter.)

Carriers will frequently attempt to provide you a small set % discount rather than dealing with your late package refund requests. You may rest certain that they will not offer you more than you deserve or are legally entitled to. They already know how many parcels were late, and you should as well. This and other information should be included in your auditing process, which should include extensive reporting. It will provide you the skills you need to effectively manage your freight spending and level the playing field when negotiating contracts in the future.

Remember that all shipments are guaranteed. Surprisingly, many shippers are still unaware that all ground shipments are insured at no additional cost. Even if your shipments aren't time-sensitive, you're paying for assured service regardless of whether you use it. As a result, if you're not auditing, you're paying for your shipments.

SET A STANDARD FOR THE COMPETITION:

There are hundreds of auditing firms from which to pick. Look for a company that has unique software that can detect things other than GSRs (ground service refunds). Hundreds of additional billing problems might be discovered if you don't use specialised software.

DON'T WAIT:

Start auditing today if you haven't already. Work with an auditor or a transportation consultant with whom you feel at ease. There should be no upfront expenses, contracts to sign, or more labour on your side.

When auditing, it's critical to keep track of how well the process is working. Actual refunds will fluctuate from week to week, but significant weekly fluctuations in the proportion of your refunds may indicate that the carrier has changed their invoicing method and your auditing procedure hasn't been adjusted to suit it.

Betachon is reknowned in Parcel Auditing and Fedex Negotiation. For any of such services, feel free to contact them.