4 ways combining FAP software and services helps shippers navigate cost challenges

Supply chain disruptions are a moving target. Whether caused by geopolitical shifts, trade disputes, regulatory changes, or other global pressures, they can significantly impact transportation costs and on-time delivery performance.

Freight audit and payment (FAP) software helps companies automate invoice validation and gain visibility into freight spend; but when paired with consulting and analysis services, it becomes a powerful tool for strategic cost mitigation.

Using freight audit and payment software to capture detailed freight spend data is an essential first step in diagnosing areas of improvement within transportation operations. But interpreting that data to inform sourcing; carrier selection and budgeting decisions requires more than just metrics in a spreadsheet. Human insight provides the critical “why” that gives context to decisions driven by data.

Here’s how this combination delivers value across industries, with practical, real-world examples of strategies used and outcomes achieved.

1. Turning freight data into strategic action

 
The uncertainty around tariff impacts on transportation costs and their broader supply chain implications has never loomed larger. Tariff classifications, exclusions and trade agreements are complex and frequently updated. Missteps can lead to overpayments or compliance risks.

Example scenario:

 Your company notices a spike in freight costs on a key trade lane after a new tariff is imposed. In this scenario the benefits of a hybrid approach to freight audit and payment strategy are two-fold:

Robust, enterprise-level freight audit and payment software will:

• Flag the increase to raise awareness of potential budgetary impacts;
• Alert software finance users to audit historical shipments to determine if previous shipments may be eligible for refunds.

The addition of expert analysis by an experienced consulting team helps:

• Identify which products and suppliers are most affected.
• Model alternative sourcing options from lower-tariff regions.
• Simulate cost impacts of shifting to different ports or modes of transport.

Combining software and consulting services in this scenario reveals where adjustments can be made to sourcing strategies, while shifting volumes to different regions reduces tariff exposure and improves cost predictability.

2. Uncovering hidden inefficiencies in freight spend

Freight audit software on its own can be useful at catching invoice discrepancies. But what if your freight cost escalations are more systemic than simple billing errors? Uncovering broader inefficiencies in carrier selection, routing and mode usage is where consulting expertise pays for itself in cost avoidance.

Example scenario:

Let’s suppose your company’s FAP system alerts you to a trend showing rising costs on expedited shipments. Do your employees have the bandwidth to stop what they working on to diagnose the causes? If so, would they know where to begin looking?

As an extension of your internal team, a knowledgeable consultant reviews the data and finds:

• Frequent use of air freight due to poor inventory planning.
• Missed opportunities to consolidate shipments.
• Underutilized regional carriers with better rates

Leaning on the expertise of an FAP consulting partner can help proactively adjust planning processes and carrier mix to reduce freight spend, improve delivery reliability and avoid unnecessary expenses going forward.

3. Benchmarking against industry peers

The concept of crowdsourcing, gathering collective input from a broad group to gain consensus or insight, is not new. But it is often overlooked as a strategic tool for price negotiations with carriers. 

In these situations, relying solely on FAP software without the benefit of broader insight may mean the difference between market-relevant rates and overpaying for capacity. Consultants often have access to anonymized industry data, enabling companies to benchmark their performance and rates. 

Example scenario:

 
As part of its annual bid process, your company wants to ensure its rates are competitive before heading into contract negotiations. FAP software provides historical rate data from your carriers showing trends for what your company has paid. But are your competitors getting better rates that give them a pricing advantage?

A consulting team can help you answer this question by:

• Benchmarking your rates against similar shippers;
• Identifying lanes where your company is overpaying and
• Supporting your negotiations with data-backed targets.

4. Accelerating ROI through change management

Even the best software requires adoption and process alignment to deliver value. Consultants help drive change across teams and regions.

Example scenario:

 
Your company has grown exponentially. Orders and freight volumes have increased, necessitating more accountability for freight invoice auditing and payment accuracy. You decide to invest in new FAP software, but worry that adoption will be slow, inconsistent and that teams may try reverting to manual processes. 

A consulting team can add value at this stage in the process by:

• Conducting training tailored to your team’s workflows;
• Creating reports to align with finance and operational KPIs;
• Establishing a governance model for continuous improvement.

Build an intelligent freight audit strategy

In a world where supply chain disruptions are becoming the norm, a hybrid approach to freight audit and payment which combines FAP software with consulting and analysis services helps companies stay agile, compliant and cost-effective.