There are shipping audit services that help reduce shipping costs by verifying whether your delivery is residential or commercial. 91 percent of the 140 million Postal Service delivery points fall into the residential category. Most shipping companies charge a higher rate for delivery to a residence. Shipping audit services, like those offered by Lojistic, are able to help streamline shipping operations and implement systems to validate costly residential surcharges.
Lojistic, for example, conducts a 42-point shipping audit of every shipment listed on your carrier invoice. Each transportation audit point can highlight carrier billing errors and a possible source of carrier refunds. The most common carrier billing errors include erroneous address correction charges, erroneous residential delivery charges, erroneous dimensional weight charges, duplicate charges, and erroneous delivery area surcharges. Virtually every invoice will contain a variety of billing mistakes and service failures. Monitoring each package and every charge that appears on your carrier invoices can save your company considerable expense.
If you are verifying shipping quotes, you should always ask for the actual weight and dimensions rather than relying on "spec sheet" weights and sizes supplied by the manufacturer. Shipping audit services will ensure your invoice accurately reflects the correct charges. Audits conducted by Lojistic will detect any discrepancies in surcharges based on address or specification errors.
Another area falling under the scrutiny of a shipping audit provided by such firms as Lojistic is the residential surcharge. UPS and FedEx charge an extra $2.45 - $2.75 per package for residential deliveries. This classification is usually made by your local UPS or FedEx driver when the deliveries are made. A comprehensive shipping audit will reveal invalid classifications in this area.
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.