Whilst it is not intentional ALL logistics service providers are guilty of overcharging their customers at some point in time.
The current chairman of a major shipping line has publicly admitted to having an invoice accuracy rate of 88%
As alarming as this might sound, some market insiders suggest that 88% is lower than the industry standard.
Reviewing and approving logistics service provider invoices tends to be one of the least favourite responsibilities undertaken by the logistics team. It is a tedious task but when it’s NOT done properly it WILL result in incorrect and unnecessary logistics costs being approved and paid.
If you feel like your organisation does not have adequate controls in place then it might be time to consider one of the options outlined below.
Pre payment approval services
Even though those responsible for reviewing and approving logistics service provider invoices might be competent at comparing what’s been charged to a rate schedule they will never be able to identify erroneous charges if they don’t understand the logistics process itself
And even if you do have someone that understands the logistics process maybe their time can be better spent on other more strategic tasks.
Logistics Cost Reduction Solutions can provide a pre payment approval service that is transaction fee based and guarantees that you will not only be charged in accordance with your rate schedule but also ensure that you are not being charged for services you didn’t get or you don’t need.
Post payment audit services
Even if your current invoice approval process is not as good as you would like it to be, all is not lost, there are still opportunities to recover previously paid logistics costs. In addition to seeking credits from logistics service providers there are also opportunities to seek import duty refunds and duty drawbacks from the Australian Border Force.
Logistics Cost Reduction Solutions can provide a post payment audit service that is purely performance fee based – our fee is based on the value of any erroneous charge or opportunity for import duty refunds that we discover after thoroughly reviewing the invoices that you have already paid and the relevant shipping documents for your imported goods.