Freight Payment as the Hack to Big Payback on Shipping Costs | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) Freight Payment as the Hack to Big Payback on Shipping Costs ============================================================ ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)April 09, 2019 Freight Payment Issues Explained -------------------------------- It is primary to ensure that all your freight payment invoices are being audited. Much of it starts with [negotiating](https://www.lojistic.com/blog/rate-negotiation) the carrier pricing that you received to begin with. Everything that follows is a result of that contract. What you need to make sure is that all your carriers adhere to that contract too. That includes not only the discounts that you've [negotiated](https://www.lojistic.com/blog/parcel-negotiation). It also includes all the accessorials that are common to your business. If that's the case, you usually have a good leg to stand on when you're trying to get discounted rates on even those. If that fails, you will get the full charge for all the accessorials. That adds up to a very expensive proposition. Everything Starts With an Invoice --------------------------------- The freight payment side starts with an invoice. One of the things our logistics software does is pull in all the tracking details for that invoice. This makes sure that every move that happened along the life of that shipment is available to us. This is also very helpful in the [audit process](https://www.lojistic.com/blog/parcel-audit). This is because if there are more charges we would see them in the tracking part of it. So we capture all that data. If our customers also want to capture [GL account coding](https://smallbusiness.chron.com/general-ledger-codes-58774.html), we can do that as well in the freight payment process. At the end of the day what it captures is where your money's going as it relates to your LTL spend. It's an overstatement to say that there are endless errors that can happen in an invoice. But that's actually close to being true. No one's doing it on purpose but it does happen. Often it's a misunderstanding on the carrier. As far as what they're seeing, they're misunderstanding the contract that you've negotiated. Or it is that you've misunderstood the contract that you've negotiated. A third party freight payment company analyzes those contracts. They make sure that everybody understands what the pricing should be. At the end of the day, the invoice is the ultimate scorecard of what happened. We want to make sure that everything in that invoice is accurate. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. [« Previous Post](/blog/freight-bill-payment) [Next Post »](/blog/data-visualization) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. 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