The power of Freight Audit and Payment (FAP) solutions

By Fifty21 Media

24 May 2023

checking-inventory.jpeg.jpg

In today's complex global logistics landscape, managing the supply chain requires more than just a Transportation Management System (TMS).

While TMS focuses on shipment execution, it's crucial to recognise that a comprehensive freight audit and payment (FAP) solution is equally vital.

By integrating these two powerful tools, businesses can establish a mature and successful logistics operation that optimises processes, ensures compliance, and drives cost reductions.

The Role of Freight Audit and Payment Software Systems

To achieve optimum efficiency in your global financial supply chain process, the implementation of a freight audit and payment software system is essential.

By leveraging such a system, businesses can unlock a plethora of benefits, including the identification of new efficiencies, compliance assurance, and cost reduction opportunities across their global transportation spend. However, to truly gain end-to-end visibility into this spend, a strategic partnership with a reliable freight audit and payment provider is paramount.

Let's delve deeper into the realm of freight audit and payment and explore how your FAP system can work harmoniously with your TMS.

A Brief History of Freight Audit and Payment

Before the deregulation of the transportation industry in 1980, payment terms were standardised, and freight invoices had to be settled within a matter of days.

However, with deregulation came increased complexity as shippers and carriers gained the ability to negotiate freight bill terms. Consequently, the need for comprehensive freight audit processes grew, especially with the advancements in technology over the past few decades.

Today, a robust freight audit and payment provider can gather substantial data regarding a company's transportation spend, enabling in-depth analysis and providing valuable business intelligence, including carbon emissions, carrier performance, and other essential key performance indicators (KPIs).

Transportation Management Systems

A Transportation Management System (TMS) is a software solution that empowers companies to optimise their global supply chain and logistics operations across multiple modes and regions. While a TMS primarily focuses on shipment execution, it plays a crucial role in ensuring efficient operations.

1. Shipment Execution

The primary objective of a TMS is to facilitate efficient shipment execution. It allows businesses to tender loads to carriers or logistics service providers through electronic interfaces, ensuring seamless communication and streamlined operations.

2. Load Optimisation

Load optimisation is another critical function of a TMS. By consolidating less-than-truckload (LTL) shipments into full truckloads and selecting the appropriate carriers and services, businesses can maximise efficiency and reduce costs.

3. Software-Focused Approach

Unlike managed services, TMS operates as a software-focused solution. It enables businesses to leverage advanced technology for improved planning, optimisation, and execution of their supply chain and logistics operations.

4. Basic Freight Audit

While TMS typically includes basic freight audit functionalities, it falls short of providing a holistic view of an enterprise's total transportation spend across their global network. This is where the integration of a dedicated freight audit and payment solution becomes crucial.

The Goal of FAP & TMS Systems: End-to-End Visibility

In order to control, optimise, and improve your supply chain, comprehensive visibility is essential. While TMS focuses on efficient shipment execution, a freight audit and payment system complement it by capturing and analysing crucial data related to carrier execution, costs, and potential areas for improvement.

By integrating an industry leading FAP solution with your TMS, you can achieve end-to-end visibility across your entire supply chain, effortlessly matching shipped goods with invoiced amounts, identifying outstanding charges, and anomalies.

Automating Data Capture for Standardisation and Centralised Intelligence

Capturing key data is only half the battle; standardisation and centralised intelligence are equally critical. This is where a dedicated freight audit and payment solution shines.

By seamlessly integrating with your TMS and automating the capture of data from various systems, it ensures that the information collected is standardised, cleansed, normalised, and connected. This centralised intelligence empowers businesses to gain invaluable insights into their transportation spend.

Benefits of Freight Data Capture by FAP Solutions

Implementing a structured freight audit process offers numerous benefits that can significantly impact your bottom line. Let's explore the advantages of regular freight audits performed by robust FAP solutions.

1. Uncover Unnecessary Costs

A comprehensive freight audit process validates freight data, allowing you to identify and rectify excess charges. For example, it can reveal unnecessary detention and demurrage fees incurred due to storage or delays in container return. Additionally, by cross-referencing invoice fees, a freight audit can alert your accounts payable team to unexpected accessorial charges, such as reweighing. By adopting a structured FAP system, you can reduce costs, improve return on investment (ROI), and optimise your supply chain.

2. Reveal Missing or Incomplete Data

Establishing a solid FAP process within your supply chain tech stack enables end-to-end visibility and helps uncover missing or incomplete data. Identifying information gaps early on allows you to fill them promptly, saving time, money, and potential contract issues. With complete and accurate freight data, you gain valuable business intelligence that propels your enterprise to new heights of operational excellence.

3. Increase Efficiency

The freight audit and payment process serves as a powerful tool for uncovering operational inefficiencies within your supply chain. By replacing manual processes with technology-based solutions, you can enhance efficiency across multiple departments and your supply chain as a whole. This, in turn, leads to lower transportation costs, reduced carbon emissions through route optimisation, and more effective utilisation of your team's time, thus maximising your bottom line.

4. Future-Proof Against Invoice Errors

Freight billing errors are inevitable, but catching and rectifying them early on is crucial. By implementing an internal FAP solution that audits all invoices, you can calculate shipping costs accurately, pay freight bills on time, and streamline payment services.

Additionally, detecting invoice errors provides valuable insights into logistics operations, allowing for necessary adjustments and optimisation. By staying proactive, you can prevent future errors and ensure smooth operations.

Leveraging the combined power of a Transportation Management System (TMS) and a freight audit and payment (FAP) solution is vital for optimising efficiency and achieving end-to-end visibility.

By embracing FAP solutions, businesses can unlock new opportunities for cost reduction, compliance assurance, and process optimisation.

The seamless integration of TMS and FAP empowers enterprises to gain comprehensive insights into their transportation spend, uncover inefficiencies, and make data-driven decisions for a successful logistics operation.

Embrace the power of FAP solutions today and propel your supply chain towards unrivalled efficiency and success.

Latest news

1

Pleasure Beach Resort takes home four prizes at UK Theme Park Awards Pleasure Beach Resort’s David Hill, head of rides, and Stuart Cumming, marketing manager with the awards

Pleasure Beach Resort takes home four prizes at UK Theme Park Awards

18 Sep 2025

2

Brookhouse Aerospace invests more than £500k in additional machinery to support growth Brookhouse Aerospace machining facility

Brookhouse Aerospace invests more than £500k in additional machinery to support growth

18 Sep 2025

3

Growth Plan maps out £20bn-plus investment journey Mo Isap from the Lancashire Business Board with the plan

Growth Plan maps out £20bn-plus investment journey

18 Sep 2025

4

Post Office future secured as council explores new options Abington Street Post Office

Post Office future secured as council explores new options

17 Sep 2025

5

Airframe Designs supports new defence strategy with pledge to nurture talent Jerrod Hartley

Airframe Designs supports new defence strategy with pledge to nurture talent

17 Sep 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day
MTD drop in session.jpg.jpg
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day, Blackburn, BB1 5QB

10:00 - 16:00

The Marketing Metrics That Matter – Sept 25
Metris 25.09.png.png
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

The Marketing Metrics That Matter – Sept 25

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 11:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

The Future of Work: Tech, teams and thriving in a changing world
Oct PTC.png.png
LBV Hub Networking
07 Oct 2025 - 07 Oct 2025

The Future of Work: Tech, teams and thriving in a changing world

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Chamber Breakfast Networking – October
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
07 Oct 2025 - 07 Oct 2025

Chamber Breakfast Networking – October

Soul Bowl, Morecambe, LA4 4BU

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin