What to gather before a freight and parcel audit
Shipping invoices are long, repetitive and full of small lines. That makes them easy to pay and hard to check. A freight and parcel audit tests each charge against the rate you agreed and the shipment that actually moved. The review runs on shipping documents, so the work for you is mostly retrieval.
Split your shipping into modes
Start by listing how you ship. Freight moving by truck, small parcel through an integrated carrier and international moves each have their own invoices and rules. Note which modes are in scope, which carriers you use in each, and whether a third-party logistics provider books any shipments for you.
If a logistics provider pays carriers on your behalf, say so. You may need to request records from them rather than from the carrier.
Carrier invoices
Collect invoices for the period under review from every carrier and account. Include:
- Freight bills and parcel invoices
- Electronic billing files, if the carrier sends them
- Statements and credit notes
- Fuel surcharge and fee notices
- Refund records, including any late-delivery credits
Include account numbers, and check that every ship-from location is covered. Sites that ship occasionally are easy to forget.
Contracts and rate tables
The agreed price is the yardstick. A freight audit checks rate compliance against it, so find:
- Carrier agreements and amendments
- Rate tables, discount schedules and minimum charges
- Fuel surcharge tables and how they are set
- Terms for dimensional weight and service levels
- Accessorial charge schedules (see accessorial charges)
- Any pricing change letters
If the carrier raised rates and you never approved it, keep that correspondence. If the discount was agreed verbally, note who agreed it and when.
Shipment records
Each invoice line should trace to a shipment. A guide to freight audits names the documents typically needed: bills of lading, tracking confirmations, booking records and proof of delivery. Gather these from your warehouse, order system or logistics provider:
- Bills of lading, with weights and dimensions
- Booking or order confirmations
- Tracking histories
- Proof of delivery with time and signature
- Records of damage, shortage or claims
Weight and dimension accuracy matter. A carrier may bill on its own measurement, and the audit tests whether that measurement was right.
Accessorial detail
Extra fees deserve a separate look. They are tied to a specific event on a specific shipment, such as a delivery outside normal hours or a wait caused by restricted access. Ask your operations team for notes explaining unusual deliveries. If a driver waited and you can show the dock was open, that record may answer a detention charge. If a residential delivery was billed, check whether the address was in fact a business.
Duplicate and late-delivery checks
Two further checks need records. Duplicates require invoice numbers and shipment IDs from your accounts payable files. Service failures require the promised and actual delivery times from tracking data. Pull a payment history by carrier so the firm can see whether any invoice was paid twice. The glossary entry on duplicate payment explains the pattern.
Contacts and process
Name a logistics lead, an accounts payable contact and someone who knows how carriers are chosen. Write a paragraph on how freight bills are approved. Do shipping staff confirm charges, or does finance pay on receipt? The answer shows where errors could slip through.
Tip: Shipping data is bulky. Ask the partner firm what file formats it prefers before you export.
Checklist before you submit
- List modes, carriers and accounts.
- Collect invoices and credits for the period.
- Find contracts, rate tables and surcharge rules.
- Pull bills of lading and proof of delivery for a sample.
- Gather notes on unusual accessorial events.
- Export payment history by carrier.
- Name your contacts.
Next steps
Read Freight and parcel for the scope, and Common freight and parcel billing errors for typical findings. Then use Request a professional. Fairview connects you with a partner firm. The firm does the audit, and any fees or terms are between you and the firm.
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