Insight

Modernizing freight audit and pay solutions

Future-ready supply chains use intelligent automation to help reduce administrative burdens, deliver insights and inform decision-making.

Manual invoicing, lack of financial transparency, and exceptions are major struggles for organizations that manage freight transactions. The sheer volume of transactions exacerbates the challenges of paperwork, multiple regulatory and tax environments, lack of uniformity in rates and invoice formats, and time-consuming approvals, emails and phone calls. Leading companies are hiring third-party services or building automated freight audit and pay (FAP) processes in-house to streamline invoice auditing, reduce costs of processing invoices and improve financial transparency. 

The average cost to audit and pay an invoice manually was $4.63 in 2017. By utilizing a technology solution or a 3rd party service provider, companies realized about 25 percent savings per invoice.
American Shipper Transportation Payment Benchmark Study 2017

Some companies have invested millions in FAP solutions without achieving an acceptable ROI. Why? It turns out, success of an FAP upgrade depends on the quality of the implementation. If implementation is done incorrectly, automation will break down and will have to be replaced with laborious, time-consuming and expensive manual processes. Even with new FAP technology at their disposal, companies have been derailed by traditional problems, including inaccurate or outdated contract information such as lane rates, accessorials, or fuel costs; vendor confusion because of inaccurate DBA or other identifiers; lack of duplication protection controls; and lack of a defined process for managing invoicing discrepancies.

Read this paper to learn about successfully harnessing advanced analytics and cognitive technologies to execute freight audit and pay actions and support evidence-based human decision-making. It offers:

  • four aspects of the FAP function that must be considered in technology implementation strategy
  • the benefits of a successful implementation
  • how KPMG can help.
Modernizing freight audit and pay solutions for a future-ready supply chain
Future-ready supply chains use intelligent automation to help reduce administrative burdens, deliver insights and inform decision-making.

KPMG complies with the auditor independence rules of the AICPA, SEC, PCAOB and DOL. As a result, some services may not be available to our audit clients and their affiliates. KPMG audit clients should check with their respective lead audit partner for more information.