Freight Glossary
Freight Audit
A freight audit is the process of reviewing carrier invoices against agreed rates, contracts, and shipment records to identify billing errors, unauthorized charges, and discrepancies before payment. It can be done internally or through a third-party audit firm. A typical audit checks every line item on an invoice against the BOL, contract rate, and actual service provided to catch overbilling.
Why it matters
Industry studies consistently find that 2 to 5 percent of freight invoices contain errors. At scale, that represents significant recoverable spend, and accessorial charges are the most common source of overbilling. A shipper spending $5 million annually on freight can typically recover $100,000 to $250,000 through systematic invoice auditing.
When to use it
Implement freight auditing any time you are shipping at volume with multiple carriers. The process pays for itself quickly and also generates data that reveals carrier performance patterns. If you are processing more than 100 freight invoices per month, an automated or third party audit program should be a standard part of your AP workflow.
How Warp thinks about it
Warp's all-inclusive per-pallet pricing reduces audit complexity dramatically. There are no accessorial line items or fuel surcharge adjustments to reconcile, making invoice verification straightforward. Per-pallet pricing means your AP team can validate every Warp invoice in seconds rather than line-by-line auditing across dozens of charge codes.