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Why GG Global
The question is:
Why audit your freight bills and why choose GG Global Corporation?
The most important testimonial of our commitment to serving you is to guarantee results. GG Global does not receive financial compensation unless we produce recovery. We will audit your past six months of paid domestic carrier freight bills, file claims on your company’s behalf, and follow claims to fruition until recovery has been made. Our negotiated fee is 50% of the recovered amount. Our Consulting Department would be pleased to assist you in prevention of freight loss and improvement of efficiency and cost reduction in transportation where warranted.
There are two undisputed facts:
1. There are always errors in transportation invoices.
2. Many well intentioned firms hire freight payment services to pre-audit and perform freight payment. Unfortunately, the bills may be paid incorrectly more than an acceptable percentage of the time.
Many times hiring a freight payment service is a necessity for the accounting and reporting requirements of a company. Accounting information captured by general ledger codes, divisions, products and many other areas need to be captured.
There are two questions to ask yourself:
1. What is your company’s percentage of error that you are willing to accept and be able to absorb?
2. How bad is your particular situation of error?
By the time we complete our freight bill audit of your past 6 months of paid domestic carrier freight bills you will know from our Post Audit and Summary exactly what your percentage of error has been. Then it is up to you, on what if anything you want us to do about it! GG Global will know everything we need to know to be able to begin assisting you to reduce your losses in transportation.
Freight payment services work on the basis of freight bills processed. That is their core competency. Many do this quite well, some do not. The problem is in the pre auditing of the freight bills themselves. The push of the freight payment service is to process as many bills each week as possible. That is how they make their money, on a per bill basis. Auditing bills is really a secondary function. To thoroughly audit a freight bill requires very experienced freight bill auditors with years of experience in the field. Unfortunately, there are just not enough of these people to go around. The true freight bill auditors are overloaded and over worked. The less experienced process data entry people are assigned to audit the bills, which never works.
Transportation bills are extremely complicated. To be able to audit a bill with a multi tiered FAK class and specific base rates, discounted and subject to rules such as capacity loads, linear foot rules, bumping clauses etc. is far beyond the knowledge base of any data entry person. As these freight payment services have grown they have put more pressure on their people to audit and process as many bills as possible. This has caused an increase in the amount of incorrectly rated bills to get by the check systems and be paid incorrectly. Presently, many of these data entry services are outsourcing to off shore concerns, which means the margins of error are increasing. Bad for the shippers and manufactures but great for companies like us!
Another situation that clients are unaware of is their being encouraged to go EDI instead of paper freight bills. Freight payment services are becoming more and more automated, encouraging unsuspecting clients to agree to change. What the client does not realize is that with EDI freight bills there are no backup doc’s to substantiate freight bill error and claims. For the extremely small discount a freight payment service offers a company to switch to EDI, a company falls victim to many unfiled carrier claims, and that is just the way they want it! No backup doc’s less claims filed with the freight payment services and carriers. Perfect for freight payment services, not so perfect for the client who has been overcharged and will continue to be.
Our belief and guarantee is that somewhere in all this data there are freight bill errors and we will locate them.
The other main reason for post auditing your freight bills is simply because transportation vendors make a myriad of mistakes If you do not file a claim within 180 days of the shipment date you have NO right to go back and claim your money. That might sound odd and even unfair but it is the rule by Tirra, a rule the carriers live by as well. If you file a claim six months and one day past the ship date, no matter how egregious their mistake was they simply will not make recovery. In other words, they are holding your money and if you do not find the error and file a formal claim the money will become theirs legally.
There is an entire industry built around the errors that transportation vendors make. Each transportation vendor has an entire department to deal with these errors. That should be an indication of just how many errors they do make. Whether you pay your bills in house or use a freight payment service, whether the bills are in paper or electronic format (EDI) there are always mistakes. If you do pay your bills in house then you should immediately have them post audited. Freight bill formulas and factors can be so complicated that even the best financial people do not understand. Whether this is done intentionally has been a matter of debate for years. However, if you are paying freight bills in house you may have carrier billing errors. I am sorry to say it really is just that simple.
There are many other important reasons to audit your freight bills explained herein. Nevertheless, the main reason is simple. Your transportation vendors are keeping your money that they were over paid when the vendor over billed your company. To receive recovery you have to post audit the bills and file formal claims.
Oddly, your people might be doing a great job with your outbound shipments. However, the majority of errors are on inbound freight bills, and for good reason. When a vendor of yours sends you freight it becomes their responsibility to determine the correct National Motor Freight Classification (NMFC). There are 18 of them ranging from class 50 to 500. These classes are actually percentages of a base rate. If the vendor marks the bill of lading incorrectly and states the freight is class 200 and in reality it is class 100, you will pay twice what the freight bill should be. But the vendor never sees that bill. Unfortunately they do not care many times as they are not paying the bill, you are.
Another benefit of having GG Global audit your freight bills is that no matter what we find we will generate a report about your transportation system. We will tell you where you stand in comparison to the market and give you an overview of what we see. This is free but will no doubt save you money if you take the information to heart.
The included booklet tells you why you should have your freight bills audited, how to begin, reports that are available following your audit along with general transportation information. I hope it is to your satisfaction. We look forward to doing business with you and making recovery.
As W. Clement Stone said many years ago “When you have everything to gain and nothing to lose, do it, and do it now. GG Global guarantees you have nothing to lose and everything to gain.
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