Introduction
Shipping costs are often a significant expense for businesses, but what if you’re paying more than necessary? Carrier invoices are complex, and billing errors are common. Identifying these mistakes can lead to immediate savings and ensure that your shipping costs align with your actual usage. Here’s a guide to spotting the five most common shipping invoice errors and how to address them.
- Duplicate Charges
Duplicate charges can occur when a shipment is billed twice or when separate charges are applied for similar services. Carefully review each line item to ensure that you’re not being charged multiple times for the same service.
How to Fix It: Regularly audit your invoices for duplicates and, if found, contact the carrier to request a refund.
- Incorrect Dimensional Weight (DIM) Calculations
Carriers calculate shipping costs based on both weight and dimensions. If the dimensions are incorrect, you may end up paying more than necessary. DIM errors can be especially costly for larger or oddly shaped packages.
How to Fix It: Double-check that the dimensions on your invoice match the actual size of the package. Request corrections if there’s a discrepancy.
- Missing Discounts
Many carrier contracts include volume-based or negotiated discounts, but these discounts don’t always appear on invoices. Ensure that all applicable discounts are being applied consistently.
How to Fix It: Keep track of the discounts in your carrier contract and verify they are reflected on each invoice. If they’re missing, reach out to your carrier to adjust the billing.
- Incorrect Service Level Charges
Occasionally, packages billed at an express rate are delivered at a slower ground rate, or vice versa. This can happen due to processing errors or miscommunication within the carrier’s system.
How to Fix It: Compare the billed service level with the actual service provided. Request refunds for any discrepancies.
- Unclaimed Guaranteed Service Refunds (GSRs)
Many carriers have policies to refund charges for late deliveries. However, these refunds are only applied if requested, meaning businesses often miss out on them.
How to Fix It: Track shipment delivery times and file claims for any that are late. This can be automated with auditing software, ensuring you don’t miss refunds.
Conclusion
Shipping invoice errors can add unnecessary costs to your business, impacting your bottom line. By identifying common errors like duplicate charges, DIM miscalculations, and unclaimed refunds, you can reduce these costs and improve efficiency. Regular audits and attention to detail can save your business thousands each year.