Shipping Company Internal Audit Checklist

Shipping companies use an internal audit checklist to conduct security-related inspections and improve company efficiency and quality standards. These shipping audits may also help increase company efficiency and quality standards.

Reviewing invoices requires time and resources, which could otherwise be spent fulfilling more important duties. Technology and third-party audit support can make this process more efficient while making it easier to detect errors.

Review of Invoices

Invoices are an integral component of shipping auditing. By reviewing them regularly and categorizing them by date, vendor, or type of charge you can identify all kinds of errors–including duplicate charges and accessorial fees not specified in your contract with the carrier. It’s essential that invoices be categorize regularly so you can identify trends or patterns over time.

Internal audit checklists allow businesses to make improvements based on actual data rather than making assumptions based on best guesses alone. They may also cover process planning and making sure all departments operate efficiently.

Employing freight audit software can automate this entire process and save both money and time. DATAMYTE provides powerful layered process audit capabilities, enabling shippers to identify areas for improvement with critical process steps that may need review. DATAMYTE’s solutions for shippers looking to reduce mistakes while improving quality are ideal, so book a demo today to learn more!

Review of Bills of Lading

Bills of lading serve multiple functions; they identify the goods being transported, indicate who owns them, and outline terms and conditions. It’s usually prepared by shippers, carriers, and freight forwarders and should be reviewed against a shipping company’s internal audit checklist to ensure its accuracy and completeness.

An internal audit checklist for shipping companies should go beyond reviewing invoices; it should also involve inspecting various other documents and reports such as safety drill reports and whether or not training programs have been implemented accordingly.

Verification of accessorial charges on invoices is another essential component of a shipping company internal audit checklist, including reviewing extra handling charges, area surcharges and fuel fees. Regular parcel invoice audits can help companies detect incorrect charges that eat into profit margins; advanced technology makes these audits faster and more accurate, making this an integral component of any shipping company internal audit process.

Review of Contracts with Carriers

No matter whether a company utilizes 3PLs, 4PLs or handles freight in-house, conducting an in-depth freight audit is key to staying compliant with regulations. The first step of the audit involves reviewing invoice data to look for any ways carriers could overcharge and any discrepancies.

Turnover times must also be carefully examined in order to identify ways of improving a company’s shipping operations and act as leverage when negotiating future carrier contracts. Furthermore, weight-mile tax rates should also be reviewed carefully for accuracy.

Other aspects of a process audit may include inspecting samples from production and verifying test plans are followed appropriately. It’s also necessary to determine whether or not equipment and technical systems that have a high probability of failing have been identified, and implement safety and pollution-prevention measures; an audit provides an excellent opportunity to review existing training procedures and make changes if needed.

Review of Contracts with Shippers

Contract reviews with shippers are an integral component of any shipping company internal audit checklist, serving to both validate customer contracts accurately as well as identify ways to increase efficiency and lower costs through streamlining processes.

Utilizing technology can make audits simpler. Freight technology enables companies to easily log invoice data and categorize it, so they can compare charges between new ones and old ones and see whether or not they are increasing, decreasing, or remaining constant.

Understanding how to conduct an effective shipping audit can save both time and money for businesses, as it allows them to ensure operations are on track to meet customer demands like On Time In Full (OTIF). Leveraging low-code platforms such as DATAMYTE to create customizable audit checklists or forms templates can make the entire process less complex.