Who Needs Audit Automation?
3PL Providers
Third-party logistics
Shippers & Manufacturers
Production & distribution
What is Audit & Automation?
Audit and automation solutions verify logistics charges against contracts, identify billing errors, and recover overcharges. These platforms span freight audit and payment (FAP), customs and trade audit, and operational auditing. Automation reduces manual review effort while improving error detection rates.
Given the complexity of logistics pricing—with accessorials, fuel surcharges, tariffs, and volume discounts—systematic auditing typically recovers 1-5% of transportation spend.
Types of Audit & Automation
Audit solutions address different verification and recovery needs:
Freight Audit & Payment
Comprehensive invoice verification and payment processing for transportation spend. Key features include multi-channel invoice capture via EDI, email, portal, and paper, rate matching comparing invoiced charges to contracted rates and tariffs, accessorial audit verifying additional charges are valid and properly applied, duplicate invoice detection preventing double payments, GL coding for automatic account assignment and cost allocation, payment execution processing approved invoices to carriers, and dispute management tracking resolution of billing discrepancies. Best for shippers and 3PLs with significant freight spend seeking to recover billing errors and ensure carriers honor contracted rates.
Customs & Trade Audit
Import and export compliance verification with duty optimization and recovery. Key features include HTS classification review verifying tariff code accuracy, customs valuation audit ensuring proper duty calculation methodology, duty drawback and refund identification recovering overpaid duties, Free Trade Agreement compliance verifying FTA qualification and certificate of origin accuracy, anti-dumping and countervailing duty monitoring, broker invoice audit for customs brokerage fee verification, and trade compliance reporting for regulatory requirements. Best for importers and global shippers seeking to ensure customs compliance, optimize duty payments, and recover overpaid duties through drawback programs.
Operational / Safety Audit
Performance and compliance auditing beyond financial verification. Key features include service level audit tracking carrier on-time performance against contracts, safety compliance review verifying carrier safety requirements and documentation, contract compliance monitoring ensuring carriers meet operational commitments, accessorial analysis identifying patterns and reduction opportunities, claims audit verifying cargo claims processing and resolution, carrier scorecard integration feeding audit data into performance management, and operational analytics identifying process improvement opportunities. Best for shippers and 3PLs seeking to hold carriers accountable to service commitments and identify operational improvement opportunities beyond cost recovery.
Freight Audit Process
1. Invoice Receipt
Capture invoices from carriers via EDI, email, portal, or paper. Normalize data for audit processing.
2. Data Validation
Verify shipment data matches—origin, destination, weight, service level, dates.
3. Rate Matching
Apply contracted rates to shipment characteristics. Compare calculated charges to invoiced amounts.
4. Exception Handling
Route discrepancies for resolution. Dispute invalid charges with carriers.
5. Payment
Approve and pay correct invoices. Track dispute resolution.
Audit Benefits
Cost Recovery
Freight audit typically recovers 1-5% of spend through error identification and dispute resolution.
Spend Visibility
Audit data provides detailed transportation spend analytics for procurement and operations.
Contract Compliance
Ensure carriers honor negotiated rates and terms.
Process Efficiency
Automation reduces manual invoice processing and speeds payment cycles.
Selection Criteria
1. Mode Coverage
Ensure the platform supports your transportation modes—TL, LTL, parcel, intermodal, ocean, air.
2. Rate Management
Evaluate capabilities to load and maintain complex carrier contracts and tariffs.
3. Integration
Consider connections to TMS, ERP, and accounting systems for data flow.
4. Analytics
Assess reporting and analytics capabilities for spend visibility and decision support.
Getting Started
Explore audit solutions in our Audit & Automation comparison tool to find platforms for freight and trade audit.