|Invoice Management||Automate the freight audit process to identify, document, and resolve discrepancies with carriers prior to payment|
|Use our powerful rating engine to compare a rated bill of lading or invoice with the exact calculation of charges effective on that date|
|Set tolerances for the amount of deviation allowed for certain rates and surcharges|
Issues and Challenges
Studies have shown that the bill of lading error rates for shippers range from 10% to 22% depending on contract complexity. Those errors often result in overcharges when carriers are not rating a shipment according to agreed-upon contract terms or using the correct contract amendment valid for the shipment date.
Largely, this is due to the complexity of ocean contracts and the number of variables that can change daily. These factors often include charges which have been mitigated in the contract but mistakenly applied to the invoice. It is a cumbersome process to review every invoice against contract terms to detect incorrect charges.
- Reconciling the bill of lading with contract terms
- Rating the invoice to ensure the correct rate was selected and applicable accessorials calculated to the terms of the contract
- Deciding whether certain variances in charges are acceptable
- Working with carriers to have them correct errors and resubmit the invoice
How Amber Road Can Help
Amber Road's contract and rate management capabilities are closely linked to the system's freight audit capability. By storing and maintaining all contracts and amendments as business rules linked to carrier rules tariffs, Amber Road can compare a bill of lading - charge by charge - with the exact record of what should have been charged on that date. By instantly identifying discrepancies, shippers can quickly submit issues to carriers for resolution. The electronic connections that the system maintains with carriers help to facilitate invoice transmission, feedback, and resubmission.
To reduce inventory carrying costs and improve supply chain efficiencies, you need accurate analytics to reduce variability and eliminate dwell time. To optimize trade lane performance, you also need accurate visibility into individual order and shipment status.
Amber Road’s multimodal logistics solution provides a range of capabilities to identify and remove inefficiencies resulting in shorter cycle times and less variability, helping companies reduce transportation costs, while improving service levels and transit times.
“With Transportation Management’s calculable contracts, we can determine our buy-rates in just seconds with the accuracy required to confidently quote and win new business.”
Ocean World Lines
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