Today we're talking about all things less-than-load, and more specifically, LTL rates and audits.
But first, since shipping terms can quickly become ‘acronym soup,’ let’s discuss what LTL really means.
What are LTL Rates?
When you have a full truckload of things to ship, you essentially ‘buy’ a whole truck. It moves across the country, and that's what you pay for.
Often, however, you have to move things in sizes or quantities that are less than an entire truckload. And there are carriers and programs that allow you to send one or two pallets along with other people's pallets. You pay a lot less for that.
If you oversee logistical operations that include freight shipping, you’re probably already familiar with LTL-managed freight solutions. And if you're here, you probably know that you need a freight audit solution.
But if you aren’t familiar with LTL, one of the biggest reasons businesses audit their freight bills is because carriers make mistakes when they bill you.
And if you don't have the facilities or the expertise to identify those errors, you can overpay for the freight you actually sent. And worse, sometimes that goes unnoticed.
You need a group of experts who are specifically trained to find those errors. At Lojistic, we have the technology to find those errors, and we find them often. We basically get your money back for you before you ever pay for it.
And there are serious cost-saving solutions available for folks who are shipping freight because errors do occur. There are humans behind these systems, and errors can happen in shipping at every level.
Common Errors in LTL & Freight Invoice Audits
One of the most common LTL rate audit problems is that someone just gets the price wrong.
It's like any other pricing agreement with any other service. You agree to pay a certain price, which is designed around a certain mechanic, and sometimes they simply apply the wrong mechanics.
A freight audit will look at what rates you should've paid against what they billed you for to make sure that they get it right.
Other general errors can happen as well. Sometimes you’ll get charged for accessorials that you didn't actually receive. Or they charge you for accessorials that you weren't supposed to pay for in your contract, but they added it to your bill anyway. A freight audit group like Lojistic would find those.
Finally, in recent months, like everything else, freight services have had to adjust to the broader implications of COVID.
And while some areas, like service guarantees, have changed, the biggest change in freight, parcel, and everything else is the increase in volume. That makes carriers busy and makes their billing departments busy, which makes errors more common.
For more information on how you can maximize your LTL rates and save money with audits, click here to contact Lojistic now!
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.