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Freight Audit - Fast Money to Your Bottom Line

Shippers recognize that modern technology offers new opportunities to increase operational productivity. Less than truckload (LTL) shipping is one area that businesses can improve efficiency by using dedicated software. LTL shipping refers to the system that organizations use whenever freight is too big for parcel shipment. By implementing LTL software, organizations can determine which shippers have extra space and which will offer the best price for the necessary destination. LTL software is often used by companies that perform freight audit services since this process is typically used to diagnose areas with cost cuts and where efficiency needs are improved. This article will take a look at how freight audit services use LTL software to help companies eliminate waste.

When does a shipper need freight audit services?

In reality, a shipper always needs these services because they help diagnose problems and find areas where the company is wasting time, money, or resources. Companies that choose to not seek out such services leave money on the table and could continue on a path of unsustainable waste that leads to bankruptcy.

How can a company acquire freight audit services?

When a company decides to acquire these services, it should reach out to an auditing firm and ask for an assessment. The firm will then come and observe the day-to-day operations and speak with the company's leadership to assess the way the business is run. After collecting this information, the firm will draw a proposal to decide the length of time the firm will provide its services and how much it will cost. Once a business decides to go with the firm, the firm will design a system to collect the data and then begin the data collection process.

What will the firm do after data is compiled?

Data will be analyzed to determine the metrics about the current operations related to departments like supply chain visibility, resource and labor management, and transportation. By combing through the data, the firm will be able to determine ways that the organization is wasting money and resources. A technological solution will then be recommended based on this data.

What kind of solution might these companies recommend?

One common recommendation is that businesses implement LTL software, to more efficiently address freight that is too big to be shipped by parcel but not big enough to warrant the use of a Intune Logistics semi-trailer. Ideal LTL software will actually minimize strategic planning costs like licensing costs, freight margins, and yearly maintenance. Those applications that can run on a Microsoft operating system are recommended because they are simple to learn, and reduces costs further. Other ways that LTL software can help reduce costs include: allowing for remote access, multi-facility support, and reducing installations with online access and pairing with a relational database.

In some cases, organizations will opt to avoid working with freight audit services altogether and instead introduce LTL software into their daily operations. To find a program that will work best for a particular organization, reach out to a supplier of this software, and explain the organization's needs. Once implemented, the organization will be well on its way to cutting costs.

What Is the Best Way to Perform Freight Audit? LTL software is often used by companies that perform freight audit services since this process is typically used to diagnose areas with cost cuts and where efficiency needs are improved. In some cases, organizations will opt to avoid working with freight audit services altogether and instead introduce LTL software into their daily operations. Regardless of which method you use, a freight audit has three primary functions:

Before the software was available commercially, outsourcing a freight audit to a 3PL provider was the sole alternative to performing it in-house.