Here’s what you’re missing if you’re not conducting parcel and freight audits

How important is an annual physical? 

According to 92% of Americans, it’s the responsible thing to do. After all, even if you don’t have glaring symptoms, it’s the best way to identify any sneaky health issues before they become serious problems.

Surprisingly, although more than 9 in 10 see the wisdom, turns out only 62% actually follow through. Some brands conduct business the same way: setting high-minded org-level goals, while putting off the detailed workup their logistics teams desperately need.

We get it: Finding the time or resources for a fiscal MRI can seem daunting. That’s where freight audits come in. A company-wide look under the hood may be a pipe dream, but freight audits are relatively lightweight, while still providing meaningful visibility into logistics spending.

Freight audits are critical for any business that wants to optimize its supply chain and become more data-driven. Let’s explore some key benefits of conducting regular parcel and freight audits, and see why it’s a mistake to let this important task fall by the wayside.

Does your logistics team need an x-ray? Get visibility with Parabola.

The benefits of freight audits

At their core, freight audits are all about ensuring accuracy and uncovering potential savings. By closely examining each shipment, and reconciling it with a corresponding carrier rate card, companies can identify billing errors, negotiate better rates with vendors, and make more informed decisions about their overall logistics strategy.

It’s hard to get exact figures, but experts believe that anywhere from 15%-66% of freight invoices contain errors that result in overcharges. Even if it is only 15%, for businesses shipping frequently or in high volumes, those costs can really add up. Freight audits provide the data-driven clarity needed to catch these mistakes and recoup lost revenue.

But the benefits of freight audits go beyond just the bottom line. By analyzing the insights gathered through the audit process, you can also pinpoint areas of inefficiency in your supply chain and make strategic changes to optimize your operations. It’s a powerful tool for boosting your competitive edge.

Partnering for freight audit success

While it’s possible to conduct freight audits in-house, many businesses find it easier to partner with a specialized third-party provider. Without organizational bandwidth or sufficient headcount, outsourcing might be a no-brainer. These experts have the technology, resources, and industry know-how to perform comprehensive audits quickly and accurately. 

Not only will a freight audit partner handle the heavy lifting, but they can also provide valuable insights and recommendations to help you streamline your shipping strategies. Look for a provider with a proven track record of recovering funds and a commitment to leveraging the latest audit technologies—Loop and Loadsmart are vetted options we recommend.

Changing the game with freight audit software

Don’t tell anyone, but there’s a way to keep freight audits in-house without raising headcount: freight audit software. These powerful tools automate the review of invoices, identify discrepancies, and generate detailed reports—saving you time and ensuring a more thorough audit process.

Platforms like Navix and Lojistic allow you to ingest data, and even promise the ability to integrate with your existing tech stack. Parabola goes several steps further by not only ingesting documents, but pulling from any source automatically; applying custom data layering and transformation; generating visualizations of invoice discrepancies; and sending variance alerts according to your specifications.

Freight audit software can be especially valuable for businesses with complex logistics operations or high shipping volumes. By aggregating and analyzing all of your shipping data in one place, you have the visibility to make smarter, more strategic decisions.

Freight audits for data-driven logistics

Like an annual physical, freight audits are the preventative care your business can’t afford to skip. With rising tariffs and continuing global financial uncertainty, logistics health might make the difference between shuttering and thriving.

So don’t neglect this critical business checkup. Make freight audits a priority, and start treating your logistics operations with the same care and attention you give your own physical wellbeing. An audit a day keeps the banker at bay!