Logistics companies perform a valuable job that makes other businesses possible. For instance, Fedex delivers packages from stores to their customers. The service is compensated with the appropriate fees. However, the billing system is not perfect. There are errors that can make bills higher than they should be. The company has an internal auditing mechanism to correct this but they do not always catch the mistakes. Big businesses usually hire third party Fedex auditors to do the checking for them and automatically request for refunds. Among the most common errors in Fedex audits are:
Double Entries
Sometimes the business gets billed twice for the same delivery. This could be a clerical error or a technical glitch. Whichever the case, this cannot be allowed to persist. It is an unfair charge that doubles expenses without merit. Auditors will catch these and file a refund on behalf of their client. They have algorithms that enable them to go through thousands of electronic receipts quickly while spotting red flags.
Shipment Delays
There will usually be service level agreements between logistics companies and their clients. For instance, they may specify that packages of a certain type should be received within X number of days. Shipment delays and other problems may be used as grounds to lower the amount or waive the fees outright. Perhaps a package was never really delivered to the intended recipient. Sometimes the issue is properly recorded and the appropriate action is taken. Most of the time, the client will have to call attention to the incident to get a proper response.
Wrong Dimensions
Auditors will also check for issues with weight adjustment. Charges are usually dependent on the weight of the packages. However, sometimes there are less dense materials that take up a lot of room on the trucks despite being lightweight. Logistics companies can adjust the charges to make up for the discrepancy. There is a limit to what they can do and they will still have to follow certain rules. Auditors can check if the box dimensions posted in the receipts conform to the standard sizes used by the company. If not, then there is probably an error that should be corrected.
Invalid Charges
Logistics companies may also add other invalid charges that unduly increases payments. One example is the address correction charge. If the carrier has to manually correct the address in order to deliver the package correctly, then a charge will be billed for the correction. However, minor clerical errors are not covered by this. Auditors will spot unnecessary charges and request for refunds.