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audit

How We Saved $150,000 In Audit Costs For A Customer In One Year

BlueGrace-Audit

Freight Bill Audit & Payment (FBAP) is a Standard, Value Added Service for all BlueGrace Logistics customers.

The same cannot be said of other 3PLs which typically offer the service for a fee. Why is FBAP important for our customers? According to members of the BlueGrace audit team only 8 of every ten carriers freight bills are accurate. At BlueGrace there is a quality control and assurance team that is called the A-Team. Their job is to authenticate every single bill that comes into BlueGrace. The bill is carefully looked at to make sure that the quoted cost matches the invoice cost. If the billed cost does not match the A-team looks for the reasoning. It could be additional weight, wrong classification, incorrect bill of lading, added service not quoted such as lift gate, or even missing quote ID. All of these are all pretty standard reasons for additional costs being added to a shipment.

For a current customer, we saved their business over $150,000 a year in audit costs alone.

Our A-Team finds that 3% of invoices that come in each day have a carrier error that they have to dispute. The dollar amount of these errors per day is up to $9,000 a day, and up to $45,000 a week. There have been error’s from the carrier invoices as big as $20000 on a single shipment! For a current customer, we saved their business over $150,000 a year in audit costs alone.

“On a typical day 3% of all shipments that come into BlueGrace there is a carrier error. We dispute the error with our carrier partners per standard protocol. On each day our team is saving our customers countless amounts of time and money. We audit $45000.00 a day in carrier errors. This is a full time job for a number of us in the A-Team. I am glad we are able to take the audit process off of our customer’s plate so they are able to do what they do best.”

Danny Mitchell, Manager of the BlueGrace A-Team.

BlueGrace is your Transportation Management Partner.

BlueGrace takes the time to learn about your freight business and then creates ideas to make it work better for you. Freight Bill Pay and Audit (FBAP) is a standard value added service for every customer BlueGrace serves. There is no need to outsource sectors of your transportation to carriers, audit firms, technology providers, etc. Let BlueGrace do it all as a single source provider for you.

Please contact a BlueGrace representative for more information on how we can streamline your freight.

 

Is Looming Dimensional Freight Pricing as scary as it seems?

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Is Looming Dimensional Pricing as scary as it seems?

 

The simple answer is no, it’s not. More and more carriers are moving away from NMFC codes and the NMFTA classing system all together. It started with Central Transport and has now moved to carriers like Shift Freight, UPS, Fedex, and YRC. These carriers have also invested in equipment to help determine the total density. The equipment is called a dimensioner and Shift Freight uses the Freightsnap model. I once heard a customer say in dealing with a re-class issue “The dims don’t lie.” Meaning if you run the true dimensions and weight of the shipment in a density calculator 99 times out of a 100 that class will be fine with the carrier. You can obtain BlueGrace’s proprietary density calculator found here. Re-classification is the number 1 issue when it comes to either secondary or increased carrier charges that differ from the original quote. Dimensional Pricing will force shippers to reduce waste in packaging and space. It will also help carriers to better utilize the space in their equipment as well as better planning in daily pickup / delivery manifests. If you are starting to see more secondary charges please read our blog about our audit process or request an account with BlueGrace today!

What are you wasting by not auditing your freight invoices?

At BlueGrace we make it our business to audit every invoice before it gets billed. To maximize the value our services provide, we research all invoice discrepancies and identify as either customer, carrier, or internal error.

If it is determined that the carrier has billed us in error, we dispute directly with them and a corrected invoice before we billing our customers. In the event it was caused by an internal error, we correct the error and adjust the invoice to the quoted price before the customer receives the bill., we will send that invoice at your quoted price. When there is a customer error, we inform you of the carrier findings, justification and educate you on how to avoid costly mistakes in the future. Should you dispute the findings, we provide you the opportunity to dispute with the proper paperwork, pictures, etc. and advocate on your behalf.

Failure to audit your invoices and hold your carrier’s accountable can result in thousands of dollars of annual waste. Here’s a recent, real life example:

If you were to ship, for example, 20 LTL shipments per a week, it could take 5 minutes each shipment to audit. The median salary in the United States is $33k a year. This means by BlueGrace professional auditing your shipments and letting you run your business we save you $26.45 a week in actual money as well as an hour and forty minutes in time. We provide this auditing service as an added service to our customers at no added charge. We can also provide data analysis of your current provider transportation costs to either validate or advise on if you are getting the most competitive rates possible. We also report on these audit savings in quarterly business reviews as you can see in the slide below:

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To learn more about our services email [email protected] or call 800-697-4477 today