5 Considerations for Choosing a Freight Audit and Payment Provider
Updated: 03-25-25
Key Takeaways
Cost Pressures Demand Efficiency – Rising costs push enterprises to optimize operations. Freight audit and payment (FAP) solutions can drive 5-7% savings.
Global Data Management – The right FAP provider consolidates freight data across multiple carriers and locations for clearer cost allocation.
Seamless Integration – Effective providers integrate with ERPs, SAPs, and warehouse management systems to enhance visibility and compliance.
Rate Management & Verification – Managing rates across trucking, LTL, ocean, and air improves spend planning and cost control.
Advanced Tech for Supply Chains – FAP solutions help companies navigate growing complexities in logistics and digitization.
Beyond Payments & Audits – The best providers offer additional tools like Trax’s Carbon Emissions Manager for ESG tracking.
As inflation and costs rise, enterprise organizations feel mounting pressure to reduce costs while increasing operational efficiencies. This is a tall order – even for the most sophisticated logistics teams.
Enter freight audit and payment technology, a key component of modern supply chain solutions. With the economy facing choppy waters, enterprises must remain strategic with their investments. So, while adding another program to your supply chain tech stack may seem counterintuitive, Trax customers achieve average transportation savings between 5-7%.
In addition to significant cost savings, outsourcing your freight audit and payment processes comes with its fair share of other benefits – including supply chain consulting, data analytics, and empowering visibility.
Long story short, you're missing out on a fully optimized supply chain without an effective freight audit program. But, like any supply chain technology, there are many freight audit and payment providers to choose from, and choosing the right one will depend on a company's specific needs and requirements.
Here are the top considerations for global enterprises when evaluating FAP providers:
Globally Managed Service Capability
There are numerous carriers and LSPs globally, so conglomerating information can be a headache. FAP providers should help you organize the varied global freight data into a simple structure, ensuring accuracy in freight payment processes and defining cost centers. This leads to a clear view of expenditure, enabling you to analyze your freight spend and see exactly where and how money is allocated.
The provider should offer their services globally and simplify them enough for you to make well-informed decisions quickly.
Flexible Data Management Framework for Freight Invoices
Look for partners who understand the importance of data management and provide greater visibility into data. This delivers more precise auditing, higher compliance standards, and a more informed vision for the future.
Third-party freight audit and payment providers can integrate their data management framework with carriers and logistic service providers (LSPs) and crucial systems such as ERPs, SAPs, warehouse management systems, and others. The result delivers a coherent, comprehensive way to view and analyze data.
Rate Management
The right partner should provide rate management for a company's services—such as trucking, LTL, ocean, and/or airfreight. With higher rate visibility comes better spend planning, cost savings, and profit margins. With better cost allocation, your company can ensure that freight expenses are accurately distributed across relevant departments and cost centers.
Rates and claims verification are crucial, and through the right provider, freight payment processes are streamlined, helping eliminate mistakes and increasing accuracy. The partner will help eliminate mistakes and increase accuracy in verification processes.
Advanced Technology for Freight Audit Services
The logistics and supply chain management world is undergoing two significant transformations simultaneously: globalization and digitization. The right FAP technology partner can help you keep up with growing complexities in supply chains and the need to account for multiple carriers, currencies, and locations, plus heightened consumer demand for faster delivery times.
Going Beyond Freight Payment and Audit
While FAP will be the bread and butter of the provider’s offerings, it shouldn’t be the only offering. The savviest providers recognize the needs of customers on a larger scale and consider other ways they can help them build a resilient supply chain.
Trax views this from a green lens and created Carbon Emissions Manager. This innovative tool tracks and benchmarks actual carbon emissions across transportation networks – all modes, vehicles, and regions – while integrating with broader Environmental, Social, and Governance (ESG) reporting.
Investing in a freight audit and payment provider has exceptional results like cost savings, optimized resources, increased growth, and improved operations.
Optimize your freight bill audit process and payment services and achieve greater visibility with the right freight audit services. Contact Trax to explore how we can help you drive efficiency and build a more resilient supply chain.