In the world of logistics and supply chain management, every penny counts. Businesses rely heavily on efficient transportation services to move their goods from one place to another. In this complex web of shipping and deliveries, keeping a close eye on carrier charges is crucial to ensure that your company is paying only for the services it has received. That’s where UTS comes in, offering an essential service that goes beyond just confirming the accuracy of charges—we verify the validity of every single one.
Why Validity Matters
Many auditing services focus solely on checking if the charges on your freight bill match the agreed-upon rates. While accuracy is undoubtedly important, it’s equally crucial to verify whether the carrier is entitled to receive payment for the services provided. At UTS, our audit services cover both bases—we confirm the validity and accuracy of each charge on your freight bills.
Here’s how we do it:
- Attentiveness: We track your freight charges and promptly notify you whenever a carrier makes adjustments.
- Thoroughness: Our meticulous investigation involves cross-referencing charges against the bill of lading and the original shipment entry. We dig deep into product descriptions and ensure they align with the National Motor Freight Classification (NMFC).
- Action: If we discover charges that are not valid, we take it upon ourselves to reverse them.
- Problem Solving: In cases of recurring issues, we work closely with you to find a solution and prevent those fees from occurring in the future.
We find exceptions in 22% of the shipments we audit. Billing exceptions include wrong tariffs, wrong discounts, weight & inspections and added accessorials.
Turning Opportunities into Savings
One area where we consistently find opportunities to save our clients money is inbound management services. When a supplier submits a large shipment as a standard LTL move, the typical responses from service providers can differ significantly.
On a managed basis:
- Other providers: Dispatch the shipment as submitted by the supplier.
- UTS: Takes the initiative to negotiate a lower volume rate, potentially saving your business substantial costs.
On a non-managed basis:
- Other providers: Only focus on checking the accuracy of charges against standard LTL pricing schedules.
- UTS: Identifies opportunities to work with the carrier to cut the invoice to a volume rate, ensuring your company doesn’t miss out on potential savings.
Real-Life Examples of Savings
Let’s take a look at a couple of real-life examples to illustrate the impact of our carrier charge verification:
A supplier shipped 11,180 pounds of PVC additives to a client, and the carrier invoiced its standard LTL rate of $5,928.73. Our audit protocols confirmed the invoice was accurate but excessive. We retroactively negotiated with Holland for a volume rate of $2,848.72, saving our client an impressive $3,080.01.
A supplier shipped high-performance alloys requiring 15.3 feet of trailer space as a standard LTL move. The carrier initially invoiced it at a standard LTL rate with oversize fees. UTS stepped in and reduced the charges from $2,784.92 to $1,477.20, resulting in a significant saving of $1,307.72 for the client.
Millions in Recovered Savings
At UTS, our commitment to ensuring the validity and accuracy of every charge pays off—quite literally. On average, in 2023, we will recover $12.43 per invoice for our clients—putting us on track to recover an astounding $5.3 million for our clients this year in overcharges and invalid charges.
Consider transferring the burden of freight bill auditing to us:
- We handle the comparison of quoted amounts to billed amounts.
- Any discrepancies trigger a manual investigation on our part.
- We take care of reversing invalid and inaccurate charges.
- Our audit services are free, and we do not retain a portion of the recovered funds.
With UTS as your partner in verifying carrier charges, you can rest assured that your logistics costs are accurate and justified, allowing your business to thrive.
See How UTS Supply Chain Audit Software Can Save You Money
If inbound delayed shipments are affecting your organization, UTS may be able to help. See how our full-service approach to transportation management solves enterprise-level problems caused by transportation-related issues. Request a demo today!