Beyond the Freight Bill Audit T he niche discipline of freight bill audit and payment (FBAP) is becoming less, well, niche-y . It’s expanding to help shippers more effectively manage supply chain and transportation costs.
Supply chain challenges have shifted over the past few years from port conges- tion and material shortages to increased costs and staff shortages. With so many factors at play, having a logistics partner that can reduce transportation costs and increase visibility in the supply chain is vital. FBAP Providers Meet a Changing World Since 2020, the sudden increase in direct-to-consumer shipments is continu- ing to drive growth in parcel deliveries. Partnering with a freight bill audit firm that offers parcel management is crucial to streamlining processes, Nolan says. The cost of financing in today’s envi- ronment of rising interest rates, inflation, and fears of recession is of concern for all parties in the supply chain. “It could have repercussions in our industry by impacting contract terms between shippers and carriers,” says Scott Burglechner, senior vice president and head of freight payment product man- agement with U.S. Bank. Additionally, the void created by the retirements of many experienced traf- fic and transportation managers has left a knowledge gap in many companies, Miner says. The upside for freight audit providers is that many of these compa- nies will need their services. As the logistics and supply chain func- tions change, so do FBAP providers. The importance of technology continues to grow.
Even as it grows, the FBAP industry remains resilient, providing technol- ogy, software, and service offerings that transcend traditional freight audit and payment, says Keith Snavely, senior vice president, global sales with nVision Global Technology Solutions. “As ship- pers are challenged to do more with less, freight audit providers are helping them reduce supply chain costs,” he adds. The importance of these efforts has become more apparent over the past few years. “The supply chain is of significant interest because there is so much expense typically associated with it,” says Jeff Carlson, vice president of global sales and marketing with Cass Information Systems. Freight bill audit and payment companies can play a significant role in helping to rein in these costs. As they do, some FBAP companies are transitioning to the term “transportation spend management.” “We don’t think the term ‘freight bill audit and payment’ will go away, but it’s a myopic name for the solution, when there’s so much more to it, especially the data,” says Melia Cothran, director of marketing, also with Cass.
The value of the data assembled during freight audits can be seen in clients’ grow- ing requirements for greater data analysis and business intelligence that’s reported in real time, often through tools like dashboards and using key performance indicators, or KPIs, says Allan J. Miner, chief executive officer with CT Logistics. The desire for data and analysis also reflects companies’ need not only for sav- ings—which remains key—but for the insight that will help them take intelli- gent correction action, says Peter Kerwin, Senior Vice President of Operations with Trans Audit. Globalization Grows Another shift is the growing focus on capabilities that cross national boundar- ies. “Over the past year, we’ve seen more shippers looking for services that are global in nature,” Kerwin says. Demand for a comprehensive logistics solutions provider is also increasing, says Elizabeth Nolan, vice president of con- tracts and compliance, CTSI-Global. Shippers are looking for providers that integrate data, the user experience, and visibility within a single platform.
The data assembled during freight audits has become more valuable, with clients seeking greater data analysis and business intelligence reported in real time, often using key performance indicators (KPIs) and through tools such as dashboards.
70 Inbound Logistics • September 2023
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