7 Signs your in need of a freight payment audit

Are You Overpaying for Freight? 7 Key Signs It’s Time for an Audit

Freight costs can be one of the most significant expenses for businesses that rely on shipping. Yet, many companies unknowingly overpay due to errors, inefficiencies, or lack of oversight. Without a proper freight audit, small to medium-sized manufacturers, distributors, and e-commerce businesses may be leaking thousands of dollars annually. But how can you tell if your business is overspending on freight?

A freight audit systematically reviews shipping invoices and processes to identify discrepancies, recover lost funds, and optimize costs. Below are seven key signs that indicate it may be time to conduct a thorough freight audit.

1. Frequent Billing Errors and Discrepancies

Billing errors are more common than most businesses realize. Carriers often make mistakes in applying contracted rates, assessing accessorial charges, or miscalculating dimensional weight fees. If you frequently find inconsistencies in your invoices, such as duplicate charges, unexpected surcharges, or incorrect weights, a freight audit can help catch and correct these costly mistakes before they impact your bottom line.

2. Rising Freight Costs Without Justification

If your freight expenses are increasing but your shipping volume remains the same, you may be overpaying. Rate fluctuations are normal, but without proper tracking and cost analysis, you may be absorbing hidden charges or overpaying on contracted rates. A freight audit provides transparency by identifying pricing discrepancies and benchmarking rates against industry standards.

3. Disputes with Carriers Are Increasing

Constant disputes with carriers over invoices, fees, or service failures can indicate deeper inefficiencies in your freight management process. If your team spends excessive time reconciling billing disputes instead of focusing on core operations, a freight audit can streamline this process by automating invoice validation, ensuring accuracy, and reducing the need for manual intervention.

4. Late Payments and Cash Flow Issues

Late payments can lead to penalties, strained carrier relationships, and even service disruptions. If your company struggles with timely freight payments due to invoice errors or a lack of internal tracking, an audit can help identify inefficiencies in your payment processing system. Implementing a structured freight payment system ensures carriers are paid correctly and on time while maintaining cash flow stability.

5. Lack of Visibility into Freight Spend

Many businesses lack a clear breakdown of their freight costs. Without real-time reporting and analytics, it is difficult to identify where you are overspending or which carriers are the most cost-effective. A freight audit provides detailed insights, helping businesses make informed decisions about carrier selection, mode optimization, and cost reduction strategies.

6. Paying for Unused or Unnecessary Services

Are you paying for premium shipping services when standard options would suffice? Are you being charged for accessorial fees that you didn’t request? Many businesses unknowingly pay for additional services that do not add value to their supply chain. A freight audit highlights these unnecessary charges and helps you adjust your shipping strategy accordingly.

7. Missed Refund Opportunities

Carriers like FedEx, UPS, and DHL offer service guarantees, meaning you may be entitled to refunds for late deliveries or billing errors. However, without a proper auditing system, many businesses fail to claim these refunds, leaving money on the table. A freight audit can automate refund recovery, ensuring you get reimbursed for service failures without the hassle of manual tracking.

How a Freight Audit Can Help

• If you recognize any of these warning signs, a freight audit is a necessary step in regaining control of your logistics costs. Here’s how it can benefit your business:

• Automated Invoice Validation: Ensures all charges match contracted rates and eliminates billing discrepancies.

• Cost Recovery: Identifies and recoups overpayments, duplicate charges, and incorrect fees.

• Data-Driven Insights: Provides visibility into shipping expenses, helping businesses optimize carriers and service levels.

• Efficiency Improvements: Reduces manual reconciliation efforts and enhances payment processing accuracy.

• Better Carrier Negotiation: Empowers businesses with data to negotiate better freight rates and terms.

Conclusion

Overpaying for freight is a silent drain on many businesses, but it doesn’t have to be. By recognizing the signs of overspending and implementing a freight audit, companies can reduce costs, improve efficiency, and enhance supply chain performance. If your business is experiencing any of the issues mentioned above, now is the time to take action.

A well-executed freight audit not only saves money but also strengthens your logistics strategy for long-term success. Investing in the right freight auditing partner ensures accuracy, visibility, and control over your transportation expenses—helping you focus on what matters most: growing your business.

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Our Location

Located in Coraopolis, PA, we provide logistics back-office services to streamline shipping operations and enhance productivity for our clients.

Headquarters

505 Mill St, Coraopolis, PA

Hours

8 AM - 4 PM

Phone

412-262-5661

Take control of your shipping costs and ensure accurate payments with McSource Technologies. Our expert team and advanced automation tools are ready to help you streamline operations.