4 Problems You Can Avoid With Freight Invoice Management

Finalizing Your Freight Classification

Shippers calculate the density by using the shipment’s weight and comparing it to the space it takes up in storage. For instance, your shipment may be 15 lbs. per cubic foot. The lower the density, the higher the classification.

Liability pertains to the risk involved with your shipment. If you’re shipping freight containing dangerous materials, that will be clearly reflected in the shipment’s classification. If your shipment contains valuable items that increase the risk of theft, this will also play into the classification of your goods.

Monitoring classification labels on your freight invoices is critical because they can affect your final cost, and you shouldn’t have to pay for mislabeled goods. As referenced above, the more you know about freight invoice management, the more clarity you will gain on every step of the freight’s journey. Stowability refers to how easily you can stow your goods with other products, which goes hand-in-hand with liability.

These two factors are so related because hazardous materials reduce the ability to pair unrelated items nearby due to the liability involved. That said, dangerous materials aren’t the only items affected by stowability—bulky shipments that are difficult to store with other items will also affect your final fee. Speaking of bulky shipments, that leads us to the last factor, which is handling necessities.

Cargo with an irregular shape requires special handling procedures outside the standard steps, so it can impact your invoice. Fragile items also require extra care when handling to avoid breakage, which isn’t dissimilar to hazardous items. It should go without saying that dangerous chemicals and other materials require careful handling to ensure everyone remains safe during transportation. Now that you know more about the factors that affect classification, you can stop them from resulting in unnecessary charges on your invoice.

Neglecting Negotiated Discounts

Like any industry, the shipping industry often presents opportunities to discount the final price of shipments. The best way to find those discounts is simply forging a great partnership with a reliable freight shipper. However, as dependable as that shipper may be, don’t forget to double-check that they honored the discount.

Don’t worry; a missing discount doesn’t immediately mean the shipper is trying to pull one over on you—mistakes happen, but it’s your business’s responsibility to make sure your money goes where it should. Thus, neglected discounts are one of the biggest problems you can avoid with freight invoice management.  It is important to also get the most competitive discounts through launching a custom transportation RFP. An invoice may signify the completion of a shipment, but the project’s not officially over until someone looks over the invoice to ensure any previously negotiated discount gets applied correctly.

Getting Charged Twice

Another costly mistake your shipper may make is a duplicate invoice, which means you’re paying twice. Suffice it to say that this isn’t the best use of a business’s resources, especially if they don’t realize it’s happening. Thankfully, out of all the discrepancies that may occur during freight invoice processing, duplicates are easy to catch if you’re paying close attention to all the orders going out.

Freight Bill Management

Again, this problem may make it seem like a shipper is trying to get more money from you, but it’s not always that simple. Luckily, now that you have a better understanding of the problems that can occur, you can start taking steps today to create a better invoice system. Assess your workplace today to see how you can start paying closer attention to invoices and saving yourself both money and problems.