Like an unwelcome guest, inflation has made its presence known globally, leaving no industry untouched. The supply chain industry finds itself grappling with the far-reaching effects of these rising prices. As the cost of goods steadily climbs, day-to-day operations within the supply chain industry face significant disruptions and challenges. The impact of inflation on this industry manifests in various ways, including increased costs, reduced profit margins, and heightened logistical complexities.

Escalating costs of raw materials, labor, and transportation have directly contributed to the strain experienced by businesses worldwide. With inflation eroding the purchasing power of currencies, procurement of essential inputs becomes more expensive, resulting in higher production costs. Companies are consequently compelled to either absorb these additional expenses, leading to reduced profit margins, or pass them on to consumers and dampen demand. In addition, the rising costs of transportation, driven in part by fuel price hikes, pose a significant challenge to the industry. 

Amidst these tumultuous circumstances, the supply chain industry seeks respite and creative ways to mitigate the adverse impact of inflation on day-to-day operations. Enter freight auditing software—a beacon of hope in a landscape fraught with challenges. This smart technology has gained prominence for its ability to provide enhanced visibility and optimization opportunities within the supply chain.

In an era dominated by evolving technologies and digital transformations, freight auditing software emerges as a vital tool for the supply chain industry to navigate the challenges posed by inflation, therefore offering tangible benefits to supply chain stakeholders by providing better visibility and actionable insights. 

Advantages of Freight Auditing Technology in a Modern World

Freight auditing software empowers businesses to effectively tackle transportation costs. A key advantage of freight auditing software is its ability to detect and rectify billing errors and overcharges. One in every four invoices gets rejected and has to be remediated, resulting in unnecessary costs for businesses. Automatically scrutinizing each invoice against contractual agreements and shipping data through freight auditing software is a much simpler way to conduct business. It can swiftly flag discrepancies, such as incorrect rates, duplicate charges, and unauthorized fees. This meticulous approach helps businesses recover overpayments and negotiate better terms with carriers, ultimately reducing transportation costs.

The beauty of freight auditing software lies in its ability to uncover hidden patterns and trends that may have otherwise gone unnoticed. This software facilitates comprehensive data analysis, empowering leaders with insights from their shipping activities. Through the examination of historical shipping data, businesses can pinpoint areas of inefficiency and waste. For instance, the software may uncover recurring instances of underutilized truck capacity, inefficient routing, or excessive handling costs. Armed with this knowledge, businesses can make data-driven decisions to optimize their transportation operations, eliminate redundancies, and reduce costs. The ability to proactively manage transportation operations not only reduces costs associated with delays or expedited shipping but also enhances overall supply chain efficiency. 

Finding Overall Success with Smarter Solutions

In the face of inflationary pressures, freight auditing software is a proven method for lowering transportation costs. As companies strive to optimize their operations and adapt to evolving market conditions, the integration of freight auditing software emerges as a critical step toward achieving enhanced visibility, cost efficiency, and overall success in the supply chain landscape.

Steve Beda is the Executive Vice President at Trax Technologies, the global leader in Transportation Spend Management (TSM) solutions. Trax elevates traditional Freight Audit and Payment (FAP) with a combination of industry-leading cloud-based technology solutions and expert services to help enterprises with the world’s more complex supply chains better manage and control their global transportation costs and drive enterprise-wide efficiency and value. For more information, visit www.traxtech.com.