Freight Billing Goals, Challenges, and Optimization

Freight Billing

A freight bill includes detailed information about the transport of goods, including the names and contact information of both the shipper and receiver, a full description of the goods, delivery due dates, and more.

It details the contract written up and agreed upon by both the shipper and carrier.

Purpose of Freight Billing

The creation of a freight bill is crucial to the transport process.

It acts as a guide for the carrier and helps them understand and uphold the expectations of the shipper.

In the event that the shipper does not uphold the conditions of a delivery, the freight bill also serves as a legal document, proving that the agreed upon actions were not followed through as previously agreed.

For example, if a carrier delivers only three boxes out of the four stated on the bill, the shipper may be able to reference the agreement to receive a partial or full refund.

For more about the process and sections of a freight bill, download a copy of Freight Billing 101: A Guide.

Common Challenges of Freight Billing

Traditional freight billing leaves a lot of room for human error.

Some common challenges involved in freight billing include an improper recording of fuel costs and failure to remove refund charges.

While small errors in judgment can add up, more serious errors occur when there is a lack of auditing.

Auditing is not just about catching one-time mistakes like unfair waived fees.

The information retained from freight bills should help the company make major improvements to its processes.

For example, a proper data refinery system can help the company determine the best routes for carriers to take, thus decreasing fuel usage and saving the company money.

Solving Freight Billing Challenges

The proper freight billing/auditing system can improve efficiency and help spur growth within a company.

Read the Article: Addressing 3 Critical Challenges Affecting Logistics Performance Management

Learn everything you need to know about overcoming the common challenges of freight billing, including the implementation of freight auditing software, in Freight Billing 101: A Guide.