Data-driven decisions: Leveraging your freight audit payment company for insights

 Harness the power of freight audit insights to drive smarter, cost-effective logistics decisions and streamline your supply chain.

Knowing your freight costs inside and out is critical for supply chain optimization in today's competitive business environment. As per data, logistics spend is approximately 8-20% of a company's revenue. Interestingly, 80% of the freight invoices contain discrepancies, and 10% of them are related to overpayments. These percentages are, undoubtedly, significant. Manual invoice processing or traditional IT systems are not capable of identifying such errors. And here comes the importance of advanced freight audit and payment (FAP) platforms. 

In contrast to the time-consuming and error-prone manual freight audits, advanced freight audit and payment companies offer robust data analytics capabilities that can yield priceless insights. You can raise supply chain performance, save costs, and increase efficiency by using these insights to make audit-driven decisions.

How freight audit payment companies can provide valuable insights

There is a mountain of similar data about shipping operations that freight audit and payment businesses gather and evaluate. Examples of such data include shipment tracking details, bills of lading, and invoices from carriers. These data are of no use without proper analysis. Here AI/ML comes into the picture to perform quick and accurate data analysis to offer clear insights. According to a Gartner survey, 50% of supply chain companies will spend on applications supporting artificial intelligence and advanced analytics capabilities by 2024. 

The following are some of how businesses can benefit you via the use of sophisticated analytics techniques:

• Identify inaccuracies and overcharges: Many companies pay more than necessary for freight because of misconceptions about carrier contracts or inaccurate billing. Not only can freight audit and payment platforms detect these inconsistencies, but they also assist you in monitoring ongoing billing problems. To renegotiate contracts to your benefit, for example, you can use this data to identify inefficiencies in your shipping procedures. Using a freight audit payment company's automated system, you can avoid overcharges, duplicate charges, and other billing mistakes.  
• Optimizing carrier performance: With the help of data gained through regular freight audits, you can learn which carriers deliver the best performance. You can ask questions such as:
  • Is it common for specific carriers to have delays?
  • Does pricing vary among providers when it comes to the same routes? 
• Boost profitability: With the help of an AI-powered FAP, you can enhance your logistics operations with the use of practical insights and data. The FAP is a great resource for finding carriers whose aims are congruent with your own, which can lead to fruitful collaborations and improved communication. Working together like this boosts efficiency and profitability by cutting operational costs and increasing productivity all the way through the supply chain.
• Shipping cost analysis for better decision-making: Companies that specialize in freight audits do more than just verify invoices; they also offer in-depth analyses of transportation costs. Get a clear picture of your spending trends with these data. Fuel surcharges, accessorial fees, and route inefficiencies are all quantifiable, so you can use the facts to your advantage.
• Quick invoice reconciliation and on-time payment: Innovative freight cost management software powered by AI is in high demand among shippers looking to automate invoices, monitor prices, and speed up invoice reconciliation. The use of standard information technology systems or third-party payment software for freight audit and payment (FAP) raises the possibility of incorrect or delayed payments, as well as delayed freight accruals. Furthermore, the shipper-carrier relationship could suffer as a result. Pando.ai automates the four-way matching of purchase orders; carrier contracted rates, proof of delivery, and invoices to boost vendor relationships through precise freight accounting and on-time payment.
• Accurate financial planning: Intelligent freight audit and payment platforms driven by AI and ML provide comprehensive insights into your freight expenditures and show whether they are in line with your budget and profitability. Take data-driven analytics as an example; they allow you to monitor your finances and shipping expenses in real time. 
• Detection of fraud: Modern tools used by freight audit payment firms help to find billing errors and unlawful charges. This guarantees correct payments and protects companies against dishonest behavior.
• Spend trend analysis: Advanced FAP platforms share spending trends and cost-saving potential by examining freight expenses. This facilitates companies' budget projections and the best use of resources.
• Rate benchmarking: Freight audit platforms find overpayments by comparing their prices with industry averages. Better contract negotiations and guaranteed competitive pricing follow from this.
• Conflict resolution: Such companies simplify conflict settlement by providing comprehensive reports that clear billing variances. Their mediation preserves professional ties and guarantees just results.
• Payment workflow automation: Automated payment systems used by freight audit companies help to lower mistakes and speed up procedures. This increases effectiveness and frees companies to concentrate on strategic objectives.
• Regulatory compliance: Companies specializing in freight audits make sure transactions follow international commerce and tax laws. Their knowledge of compliance reduces legal liability and helps to avoid fines.

The role of data-driven decisions in supply chain optimization

To optimize a supply chain in the modern day, data is king. According to McKinsey, spend analysis and visibility are the key to your supply chain success. Using freight audits and payment to make informed decisions can revolutionize your logistics operations:

• Visibility across the entire supply chain: The more information you gather, the easier it is to understand your supply chain. By accessing your freight audit data, you can see the whole shipping process, from placing an order to receiving the package, the supply chain's bottlenecks, delays, and improvement opportunities can be better identified with this level of visibility.
• Better budgeting and forecasting: Audit-driven decisions backed by data allow you to foresee future expenses by performing descriptive, diagnostic, predictive, and prescriptive analytics around freight spend management. Your ability to plan for future shipments depends on your awareness of where you are now paying too much and where you have room to cut costs. Improving your forecasting abilities will help you stay away from unforeseen surcharges and last-minute rush expenses.
• Continuous improvement through analytics: Streamlining your supply chain and optimizing your logistics operations are two ongoing processes. It is possible to establish a cycle of continual development with the assistance of freight audit and payment companies. A more efficient supply chain is the result of consistent assessment and action on logistics data analytics.
• Cost cut: Data-driven insights help companies find supply chain cost-saving potential. Advanced analytics of Historical and real-time data helps organizations cut waste, avoid overstocking, and negotiate better supplier rates, lowering operational expenses.
• Supplier performance assessment: Analysis of carrier performance measures such delivery timeframes, quality compliance, and cost-effectiveness improves decision-making. This data-driven approach lets companies work with top carriers, develop strategic partnerships, and solve underperformance to maintain supply chain flow.
• Better process visibility: Data-driven systems provide end-to-end visibility across the supply chain, from procurement to delivery. Businesses can monitor inventory, shipment status, and production deadlines in real time with IoT and cloud computing.
• Improved client experience: Supply chains must adapt to meet customer expectations. Data-driven insights into client preferences, demand trends, and feedback help organizations personalize offerings, speed deliveries, and provide excellent service.
• Streamlined decisions: Supply chain leaders can make timely decisions with accurate and complete data. Actionable insights from predictive analytics solutions help firms forecast demand, optimize resource allocation, and link supply chain strategy with business goals. 
• Performance and KPI tracking: Monitoring KPIs including order accuracy, delivery lead times, and cost efficiency ensures supply chain goals are met. Data-driven dashboards and reporting tools demonstrate performance and enable fast modifications for operational excellence. 
• Proactive risk management: Predictive analytics identify and mitigate problems before they escalate. Businesses can adopt contingency plans to ensure supply chain resilience and continuity by examining trends, patterns, and external events like geopolitical shifts and weather interruptions. 
• Sustainable goals: Sustainable supply networks are becoming more important. Optimizing routes, reducing waste, and sourcing sustainably with data-driven insights helps companies reduce their environmental impact. These strategies boost company reputation and customer trust while supporting environmental aims.

Examples of data-driven decisions in freight operations

Visibility into freight spending is essential for companies, allowing them to make informed decisions, optimize routes, negotiate improved rates with carriers, and enhance overall supply chain transparency.  As per reports, profitability can be greatly enhanced with a thorough freight payment and audit process, which can result in savings of up to 8% of overall freight expense. Sighting this significant cost-saving opportunity, there is an increasing demand for actionable insights derived from freight payment data to enhance logistics strategies. 

Your freight audit insights can affect several transportation-related domains:

• Routes optimization: Discovering inefficient routes that raise expenses can be done by analyzing logistics data analytics. You can use this data to your advantage by looking into different shipping options that can save you significant money without sacrificing delivery times.
• Carrier negotiation: Although carriers frequently employ data-driven insights to establish their prices, you can turn shipping cost analysis to your benefit. Utilizing audit data gives you the proof you need to bargain for better conditions, get lower fees, or demand higher-quality service.
• Strategic freight procurement: With the help of innovative freight audit and payment companies, shippers can use logistics data analytics to make strategic freight procurement decisions. It is possible to examine freight costs, carbon footprints, and the state of regulatory compliance. For example, if you see that some carriers consistently submit incorrect invoices, you can keep them off future freight procurement tenders by blacklisting them.

The data-centric approach to freight audit and payment with Pando

From an administrative need to a wellspring of insightful data, freight auditing can be repurposed with a data-centric strategy. Freight audit insights can be easily integrated into your decision-making process when you work with dependable freight audit and payment automation platforms like Pando.ai. Your company will be better prepared to succeed in the increasingly complicated logistics landscape, and you'll save time and money doing so. 

Here's what Accuride had to say about Pando's freight audit and payment platform — "The freight audit part of the system ensures we are getting invoiced the proper amounts for customs, freight and drayage bills." 

Real-time freight analytics are available on the Pando platform, letting you see and leverage shipping data from various routes and carriers. Learn how Pando helps improve your shipping operations and supply chain efficiency with data-driven insights.

Drive smarter decisions with freight audit Insights

Nowadays, data is readily available therefore it's important to make good use of it. Gain valuable insights from raw data by partnering with freight audit and payment companies like Pando. Improving carrier performance and cutting costs are just two examples of how a data-centric approach and logistics data analytics can revolutionize your shipping business. 

Are you ready to use data-driven insights to revolutionize your logistics? Check out Pando's state-of-the-art freight audit solutions to see how they can improve your supply chain operations.