Invoice Management

Invoice Management 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.

Challenges include:

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Reconciling the bill of lading with contract terms

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Rating the invoice to ensure the correct rate was selected and applicable accessorials calculated to the terms of the contract

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Deciding whether certain variances in charges are acceptable

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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.

Shippers can save money by accurately identifying errors that result in overcharges. They can also use this information to manage carrier relationships and determine whether billing accuracy changes over time. As global logistics costs increase, shippers can use our logistics solutions to implement a robust process for auditing freight bills, identifying overcharges, and resolving disputes with carriers.

Features	Benefits
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

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Invoice Management

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