The Post-Audit Process: A look at what our auditors examine - Part 2

In our last blog post, we launched the first of a three part series that looked at the post-audit process. This week we continue the three part series by taking a close look at essential steps that auditors at Freight Revenue Recovery of Miami (FRRM) taken when recovering overcharges. 

1. Is the currency correct? If other than US pricing, check sources for proper conversion.
2. Accessorial /add on charges: Are they proper and legal in terms of the contract in place? Why has carrier assessed detention charges? Why are port charges being assessed on a domestic move? Why are carriers assessing GST/QST charges on cross border movements? 
3. Fuel Surcharges: Is the fuel surcharge component correct? Check other published sources for comparative pricing including established federal guidelines. There should be separate formulas used for TLTL versus Truckload shipments. 
4. LTL Discount Programs: Are they correct in terms of the contract? Are they being misapplied because of joint line hauls with other carriers? Discounting off of what base structure can make a tremendous difference.

FRRM has many base formulas loaded in our system to make sure we get our clients the largest refund guaranteed.

Next week, we will conclude our three part series of what is examined in the Post-Audit process. 

The Post-Audit Process: A look at what our auditors examine - Part 1

This week we launch the first of a three part series of an in-depth look at the post-audit process. We will share with you what our auditors at Freight Revenue Recovery of Miami (FRRM) typically examine when conducting a post-audit. 

1. Carrier Vendor: Is this an approved carrier vendor? If not, is this a legitimate based operator carrying the required industry level insurance? Are they licensed for intra or interstate carriage of goods?
2. Terms of Shipment: Prepaid or Collect: Is your business truly responsible to pay these freight charges?
3. Description of Goods: Check online sources for B/L’s of PO’s to ascertain if properly described.
4. Base Price Charged: Is it in full compliance with the contract in place? If no contract is in place, are the charges in line with other comparative shipments in the industry? Why were goods moved in two trailers in one day to the same customer and assessed higher charges when they could have been combined?

FRRM has many base formulas loaded in our system to make sure we get our clients the largest refund guaranteed. 

Next week, we’ll continue with part two of what is examined in the Post-Audit process. 

Is your company a victim of duplicate billing?

One would think that with all of the computerized programs and technological advancements, duplicate payments of freight bills would no longer be a problem. Unfortunately, it is the exact opposite - duplicate (and multiple) billing and payment is greater than ever before. 

There are at least 17 different kinds of duplicate payment errors. Although computers have been programmed to catch repetition of pro numbers, bills of lading, origin & destination by date, mileage and other factors; many carriers submit corrected or follow-up bills with slight variations, such as adding suffix letters to pro numbers in order to get away with double billing. Sometimes these variations cause the computer to miss the duplication and pass the item through as a new entry. Carriers may also re-bill on a "Statement" form with a different number series than their invoices causing the bill to be paid twice. If several statements are submitted as follow-ups to an individual bill, that bill could actually end up being paid, three, four or even more times. As the leading freight revenue recovery company, we have seen freight bills of over $500 being paid five times within a two week period.

There are some judgements and conclusions that are beyond our ability to program into computers. In order to minimize the possibility of duplicating payments, the computer's information must ultimately be analyzed and evaluated by trained professionals. We at Freight Revenue Recovery of Miami work to ensure that you aren’t being double or tripled bill and strive to recover the money that is owed to you. 

Why Should You Conduct a Freight Audit?

The purpose of a Freight Audit Company is to help your company recover overcharges by your freight transportation sources. All freight charges, whether inbound or outbound, prepaid or COD, could be entitled to overcharge refunds. Regardless of who initiated the shipment, if your company pays for the freight, you are entitled to claim for overcharge refunds.

Freight Revenue Recovery of Miami (FRRM) has been in business since 1977, effectively serving with distinction the Internal Audit and SOX Compliance needs of a vast number of clients in the manufacturing, retail, and distribution fields. The company has evolved into a World-Wide audit company with impeccable references. In addition to meeting SOX requirements, Freight Revenue maximizes dollar recoveries through steady ongoing improvements in our proprietary software programs and ongoing extensive training programs for our audit staff.

As your outsourcing partner, Freight Revenue Recovery of Miami, Inc., has built a team of professionals that will work directly on your behalf. Our sales staff will consult with you to identify the areas that could be dramatically improved in your current transportation program. Whether your company is a small firm or Fortune 500 in size, you will receive individualized attention. The FRRM post audit is designed to accommodate shippers of all sizes. Our reporting for post audit is geared to providing you useful statistical data for your analysis, in a timely manner. 

Freight Revenue Recovery of Miami provides a great way to recover any revenue lost to the carrier's constant over billing. As we all know, eventually errors slip through even sophisticated payment processes.  Consistent auditing practices lead to better freight management.