Freight Audit FAQs
About Freight Audit & Analytics
What is Freight Auditing?
Freight auditing is essential for companies that ship goods in high volumes to customers through carrier companies. It is a manual or automated process that encompasses deduplicating and clarifying invoices, identifying and correcting carrier errors and monitoring and managing transportation expenses. When up to 90% of carrier invoices arrive with errors, a key aim of freight auditing is to make sure you never overpay.
Why do I need Freight Auditing?
In addition to verifying that carrier invoices are 100% correct before payment, freight auditing ensures your goods are reaching your customers in a timely, cost-efficient manner. Auditing freight bills will guarantee that all charges your company makes are legitimate and fair for all parties involved and help you maintain good relationships with both your customers and the carriers you choose. A good freight auditing solution will also provide custom analytics that give you complete visibility over your supply chain. This will empower you and your team with the critical intel required to better manage processes and costs to optimize profitability.
What does Freight Audit & Analytics Software actually do?
The software presents an economical way to avoid individually processing each freight bill. It can help companies of all sizes, but it is ideal for those responsible for hundreds of shipments every month. Freight audit & analytics software automates manual freight bill audit and payment (FBAP) processes, such as data collection, invoice review and supply chain reporting. It correctly classifies freights, verifies base rates, ensures discounts and/or accessorials have been correctly applied, ensures compliance with tax laws and checks that the correct fees and tariffs have been included. Finally, it confirms the amount for accuracy before payment is run. On the analytics side, good freight audit and analytics software includes customizable, interactive dashboards that give full supply chain visibility. This will help you select the most cost-efficient carrier, discover patterns of incorrect charges, benchmark and optimize processes and visualize how expenses are affecting overall cost of goods sold in real-time – all to maximize profitability.
What makes Orca’s Freight Audit and Analytics solution better?
With Orca, you’re investing in a partner, not a service. Our Freight Audit & Analytics solution automates your freight payables process, eliminates overpaying and collects and consolidates your data. But we go a big step further. We get to know your business needs, and we customize our tools, services and processes to help you achieve your goals sooner. The Orca system goes above and beyond the typical, with analysis customized to run different scenario models for you. Our system recognizes patterns, compares costs of alternative carriers and sums up total potential savings or optimized costs. It drills right down to the SKU level, exposing the true cost to serve each customer you have, with each product that they order from you.
Why should I use Orca over handling freight audits internally?
No matter how meticulous your team is, there is just no way that manual auditing will come close to catching the carrier invoicing errors that our software detects and eliminates. We ensure that your invoices are 100% correct, and our highly skilled freight audit team will resolve all discrepancies with your vendors on your behalf, saving you time and money. And we’re not just an auditor, Orca’s solution is an integrated supply chain technology that helps create efficiencies and reduce costs. No more stacks of invoicing issues to correct or accessorial charges to approve. Our solution frees up your logisticians to generate true business value, using the real-time data we provide on custom dashboards mapped to your critical KPIs.
What analytics does Orca’s Freight Audit and Analytics solution provide?
The Orca system was built for the effective management of supply chain processes, including payables, data auditing, freight analytics and supply chain decision-based modelling. We give you a holistic view of your entire supply chain network, including a carrier scorecard, cost-to-sell analysis, customer summary, GL analysis and budgetary tracking. We custom-tailor the analytics and reporting to your unique business goals and the KPIs of your choosing. This leads to more relevant insights and higher cost savings. Our solution provides each customer with the opportunity to push us to new technological advancements. We urge our clients to get creative, brainstorm with us and help us understand the different ways they look at the various divisions of their supply chain. We then take ideas and recommendations back to our dev team to continue to innovate the output our technology can offer. Most recently, we have taken on AI and ML projects which will continuously recognize patterns of shipping and create efficiency opportunities for our clients.
Just how much customization do you offer?
Our customization is what truly sets us apart. Our Freight Audit & Analytics software cleans your data, analyzes it and presents it on dashboards that are fully customizable to your requirements. We also help you set up interactive reports and dashboards, including personalized filters that allow you to choose and track KPIs based on the business goals you need to achieve. When a client asks if we can do something out of the ordinary, we thank them for leading us to a new potential solution and accept the challenge. Our IT leaders all have supply chain backgrounds, which makes new challenges a great way to continuously push the envelope and create new industry best practices.
How do I get started with Orca?
There are no upfront or monthly payments. The savings we recover from your vendors will pay for the entire service in year one. Orca is one of best freight audit companies providing this option. Simply contact us to start saving.
Want to optimize your supply chain and become more profitable?
General Parcel Freight Bill Audit
Which parcel carriers does Orca audit?
Orca audits invoices from UPS, FedEx, Canada Post, Purolator, Canpar, Loomis, USPS, DHL, as well as smaller regional providers. We are there to ensure that every shipping bill is 100% accurate.
Does Orca guarantee to reduce parcel freight costs?
Yes. As many as 90% of carrier invoices contain errors. As your freight audit partner, we ensure we have a clear understanding of your business in order to identify all carrier errors and recover those costs for you.
How can I track my freight savings as a result of using Orca?
Carrier refunds generated by our Freight Audit & Analytics solution are applied directly to your accounts. Unlike other companies, we don’t make you wait for a weekly report. Instead, we provide ongoing real-time updates detailing carrier credits, so you have complete visibility. Plus, every invoice audit is accompanied by a complete audit trail.
What is Orca’s freight Audit & Analytics solution looking for on each invoice?
Carriers often overcharge due to service failures and billing mistakes. The most common billing errors relate to packages manifested but not shipped, late deliveries, erroneous dimensional weight charges, duplicate charges, incorrect delivery area surcharges, failure to receive proof of delivery and more. Our software and freight audit specialists review critical elements on every line of your carrier invoices so you never overpay.
How much time does it take to implement Orca’s Freight Audit & Analytics solution and what do you need from my team
Onboarding innovative new systems and processes takes time, but they are imperative to improving your supply chain and transportation networks. At Orca, we take on the heavy lifting. At the same time, we consult with your teams on a regular basis to set goals and ensure that processes, rules, rate agreements and other essential elements are aligned with your operation and requirements.
We seamlessly integrate our software with your systems, including any enterprise resource planning (ERP) solution, warehouse management system (WMS) or in-house software. Our processes are also custom-built to your company’s needs and with minimal change to your current operation. We can discuss timing with you on a case-by-case basis.
We seamlessly integrate our software with your systems, including any enterprise resource planning (ERP) solution, warehouse management system (WMS) or in-house software. Our processes are also custom-built to your company’s needs and with minimal change to your current operation. We can discuss timing with you on a case-by-case basis.
Post-implementation, how much time will we need to dedicate to managing the freight auditing process?
Once we’ve implemented Orca’s Freight Audit & Analytics solution you will immediately begin to see cost savings on your shipments. No time is required on your part to facilitate ongoing audits.
And unlike other companies, we don’t make you wait for weekly reports. We deliver up-to-the-minute intelligence on demand. You will receive immediate information in real time, including credits applied resulting from our audits. If there are invoicing disputes, our freight audit experts will work with your carriers to solve discrepancies and request credits on your behalf, saving your team valuable time and money.
And unlike other companies, we don’t make you wait for weekly reports. We deliver up-to-the-minute intelligence on demand. You will receive immediate information in real time, including credits applied resulting from our audits. If there are invoicing disputes, our freight audit experts will work with your carriers to solve discrepancies and request credits on your behalf, saving your team valuable time and money.
How is Orca different from other parcel freight audit and analytics companies?
With Orca, you’re investing in a partner, not a service. We understand that every supply chain is unique. Our solution is customized to your needs, leading to deeper insights and bottom line savings. We bring a fresh view to the industry, focusing on innovation, advanced analytics and unmatched client experience. Our number one priority is to add value every day by going above and beyond.
What kind of reporting and analytics does Orca offer?
When you implement Orca’s Freight Audit & Analytics solution you have the following real-time reporting at your fingertips:
- Freight network analysis
- Carrier scorecard
- Accessorial analysis
- Customer summary
- Revenue analysis
- SKU analysis
- Total landed cost reporting
We then customize your reporting and analytics to your business needs, so you can effectively manage your own distinctive supply chain processes – from payables, data auditing and freight analytics through to supply chain decision-based modelling. Our dashboards can also be personalized with filters to enable you to track the KPIs of your choosing.
We see ourselves as your partner, and as such, we will hold quarterly business reviews, walk you through year over year comparisons and run scenario modelling – such as projecting cost savings if you moved a DC to another city. We also have the foresight, scalability and proven expertise to help predict and meet your future business requirements. We are continually reinvesting in the future of supply chain technology, including AI and ML capabilities, to empower your supply chain with critical intelligence now and for the future.
Some audit procedures are already handled by my company internally. Can Orca supplement these with limited auditing that includes only what our internal audits don’t cover?
At Orca, we see ourselves as your business partner. We are happy to make customizations to our Freight Audit & Analytics solution to accommodate your business requirements.
How will implementing a parcel audit service impact my company’s relationships and service levels with carriers?
Your relationships with carriers will not be adversely affected by using Orca’s Freight Audit & Analytics. Carriers sometimes need reminders that they have to work to keep your business, and regular auditing is a great way to ensure they are upholding service level agreements. As a result of using Orca, many customers experience a higher level of service from their carriers.
We have a general service refund waiver. Is Orca still able to audit our parcel freight invoices?
During contract negotiations, some carriers ask shippers to waive their rights to on-time delivery guarantees. They often do this in exchange for additional incentives in other areas of the contract. A general service refund (GSR) waiver, or money back guarantee waiver, is something you should consider seriously before signing away your rights to refunds for late deliveries. In many cases, the additional incentives could be negotiated into your contract without signing a GSR waiver.
However, even if you have a GSR waiver in place, Orca’s Freight Audit & Analytics software is still able to audit your freight invoices for errors and ensure you only pay for what was agreed in your contracts. Service failures/late deliveries make up only a part of what we are looking for in your invoices. Our software not only ensures you get the refunds you deserve but also full supply chain visibility so you can optimize cost savings.
However, even if you have a GSR waiver in place, Orca’s Freight Audit & Analytics software is still able to audit your freight invoices for errors and ensure you only pay for what was agreed in your contracts. Service failures/late deliveries make up only a part of what we are looking for in your invoices. Our software not only ensures you get the refunds you deserve but also full supply chain visibility so you can optimize cost savings.
How much does Orca’s Freight Audit & Analytics solution cost?
There are no upfront or monthly payments. The savings we recover from your vendors will pay for the entire service in year one. Orca is one of the best freight audit companies providing this option. Our success is contingent upon finding you the highest possible cost savings on your freight bills.
Want to find a freight audit partner, not a service?
General Truck, Rail, Ocean and Air Freight Audit
What modes of freight transportation does Orca audit?
Orca audits freight invoices from truck (LTL & FTL), rail, ocean and air shipping services. Our Freight Audit & Analytics solution analyzes every line of your invoices, identifies errors and ensures you never overpay. If there is a billing discrepancy, our audit experts will work with your carrier on your behalf to ensure you receive all credits due.
What types of billing errors does Orca’s Freight Audit & Analytics solution look for?
Our Freight Audit & Analytics software reviews critical elements on every line of your carrier invoices so you never pay more than you should. Orca detects errors such as duplicate invoices, invalid accessorial charges, incorrect tariffs, service level failures, carrier routing non-compliance and much more.
What freight cost recovery percentage can we expect from Orca?
Freight cost recovery percentages can vary widely based on the transportation mode, the carrier, the product being shipped and more. Some freight audits can recover 1% in savings, others can be as high as 10%.
How far back can Orca go to look for erroneous freight billings?
Each transportation mode has its own statute of limitations for filing for freight billing errors. Air freight and LTL shipments typically have a six-month window, while FTL shipments have one to two years. Ocean freight and rail freight invoice audits can go as far back as 3 years before the statute runs out.
Can Orca conduct secondary freight bill audits?
Yes. Orca’s Freight Audit & Analytics solution is comprehensive and thorough. We are able to uncover billing errors and cost savings that less advanced solutions miss. Don’t leave money on the table. If you would like us to conduct secondary audits of your freight bills, we would be happy to help.
Does Orca audit paper freight invoices, in addition to electronic ones?
Yes. Whether presented with paper or electronic invoices, our freight auditing is extremely thorough. We ensure that your invoices are 100% correct, and our highly skilled freight audit team will resolve all discrepancies with your vendors on your behalf, saving you time and money.
How much does Orca’s Freight Audit & Analytics solution cost?
There are no upfront or monthly payments. The savings we recover from your carriers will pay for the entire service in year one. Orca is one of the best freight audit companies providing this option. Our success is contingent upon finding you the highest possible cost savings on your freight bills.
Want to maximize your freight cost savings?
General Parcel Freight Contract Negotiations
My contracts include the lowest possible shipping rates. How can Orca help me save more?
Although you may have been very thorough in your contract negotiations, Orca’s Freight Audit & Analytics software and in-house experts have the data from thousands of contracts to back them up. Our software is able to conduct advanced analytics based not only on price, but on cost to carriers, terms of service and more. With our deep analytics paired with our contract negotiation expertise, we are able to pinpoint areas in your contracts where you can improve your position and achieve higher benefits.
Negotiating is my specialty. Why should I hire Orca to negotiate my contracts when I can do it myself?
Orca’s team is not only expert at contract negotiations, but they have the powerful insight of Orca’s freight analytics backing them. An effective contract negotiation requires the analysis of many data points, and Orca’s analytics are proven to find more ways to ensure your contracts are drafted in your favour.
How much of my time will be required during the contract negotiation process?
Orca provides the contract negotiation specialists and the analytics software to optimize your contract negotiations. We handle everything, from beginning to end.
What if I have just signed a new carrier contract, do I need to wait for it to expire before Orca can get involved?
Carrier contracts may have specified term lengths, but they can also be revised at any time. Orca can help you optimize negotiations when you are ready to make contract revisions. We can analyze your current contracts to find opportunities for cost savings and get you the best incentives available. We are here to help you get the most out of every one of your contracts.
If I use Orca’s contract negotiation services, will I need to change carriers?
No. Orca is there to assist you in finding the highest cost savings and optimize your contract negotiations. We then present you with the best pricing available from all the carriers you wish to consider. From there it’s up to you to choose which contracts to accept.
Will hiring a third-party contract negotiator jeopardize my good relationships with carriers?
It doesn’t hurt to remind carriers that they have to continue to work for your business by offering the best pricing and service levels. Orca’s contract negotiation services give carriers a friendly wakeup call, and at the same time help you get the best pricing and service levels. Our customers find that they enjoy even better relationships with carriers after going through the Orca contract negotiation process.
I have confidentiality agreements with my carriers. How will they affect my ability to work with Orca?
Most carriers include confidentiality clauses in their contracts. We have structured our contract negotiating services to accommodate confidentiality commitments.
If Orca analyzes my carrier contracts to show me potential savings, am I obligated to Orca in any way?
No. We analyze your carrier contracts to uncover potential savings. It is common for companies to hire our services upon seeing their substantial freight cost reduction opportunities, but there is no obligation to do so.
Does Orca guarantee to reduce shipping costs through their contract negotiation services?
Yes. Our contract negotiation services deliver measurable shipping cost savings.