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How to Avoid Overpaying On Improper Shipping Invoices
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Many firms find themselves struggling today to stay afloat as restrictive bank lending, rising problems collecting receivables, and reduced consumer and business demand have combined to make running a profitable business very difficult.
• ENS is an acronym for ENtry Summary Declaration.
• ENS is required by EU customs to do a security assessment of all cargo entering EU ports• Carriers can use their discretion as to the quantum of the ENS charge
Companies surviving and thriving in this environment are going back to the basics
and analyzing every aspect of their operations and supply chain – and one of the first
areas that should be analyzed is Accounts
Payable.
• ENS is an acronym for ENtry Summary Declaration.
• ENS is required by EU customs to do a security assessment of all cargo entering EU ports• Carriers can use their discretion as to the quantum of the ENS charge
Over Payments: Sloppy Accounts Payable or
Fraud?
Container Freight Pricing Transparency With One Platform In Real Time & On Demand.
Regardless of the size of the business, payments to vendors represent the single largest category of spending in most companies.
While email and e-commerce makes business communications faster and easier, a huge amount of paperwork is still generated, and must be linked up to the relevant contract.
the issue is when the vendor –either deliberately or by accident – overcharges your business by invoicing incorrectly or by adding fees outside of the contract – with freight bills being the largest source of incorrect payments.
Do you know what the codes in the freight rate sheet mean?
Even the most sophisticated logistics and supply chain operations can be plagued by
vendor errors that directly affect profits. Industry experts estimate that inaccurate freight bills and a failure to comply with
established routing guidelines can add an estimated 6% to annual shipping costs.
Invoices & Routing:
Auditors help you find and recoup duplicate payments, use credit memos issued, capture missed discounts
and a host of other errors that can impact your bottom line. To ensure a more comprehensive audit, the more sophisticated auditors or accountants use software tools to scan procure-to-pay data and link invoices to
contracts; this is the best way to catch those erroneous payments before they affect both cash-flow
and bottom-line performance.
Audit-Audit-Audit!
Negotiating contracts with suppliers can be a long and demanding process, but when
negotiations are complete and the goods begin to flow, it’s essential the vendors comply with the new contract terms and prices – and it’s essential the buyers check the invoices for
accuracy.
Contract Compliance:
Learn how Xeneta can helpYou get insight and intelligence into your global ocean freight prices and
change your logistics business:
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Preserve & Protect Your Bottom Line
It’s a balancing act: does one put production at risk if signing a sole-source supply contract that minimizes paperwork, or does the risk of erroneous payments rise exponentially if multiple vendors are used?
Effective supply chain management
today needs both an effective strategy for
managing sourcing and shipping
decisions as well as verifying the accuracy of the
vendor’s paperwork.
Pro-actively managed companies are moving beyond A/P’s traditional audit-and-recover to focus on prevention. Instead of relying on traditional manual auditing, firms are utilizing specialized software that monitors their payment process.
Such systems enable the company to correct any errors before the Euros or dollars are paid-out, making it unnecessary to chase credit memos or cash.
Proactive prevention allows you to detect duplicate payments, take advantage of prompt discounts, and be alerted to careless or fraudulent vendors.
Look for Savings in All Stages of the Supply
Chain
• ENS is an acronym for ENtry Summary Declaration.
• ENS is required by EU customs to do a security assessment of all cargo entering EU ports• Carriers can use their discretion as to the quantum of the ENS charge
For sure, eyes should be pealed for mishaps in invoices to make sure
freight rate costs are accurate. However, always remember that if
full visibility into freight costs is applied at all levels of the supply
chain, savings can come in truckloads.
It’s a balancing act: does one put production at risk if signing a sole-source supply contract that minimizes paperwork, or does the risk of erroneous payments rise exponentially if multiple vendors are used?
