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Consolidated freight invoicing is a practice often overlooked by many shippers, but is a resource that can save both the logistics team and the finance team a lot of time and energy. The Redwood finance team not only processes a full freight audit & payment but also implements a consolidated freight invoice program for each of our clients. In this blog post, we will discuss what exactly consolidated freight invoicing is and how it benefits your company.
What is Consolidated Freight Invoicing?
Every parcel, less than truckload and truckload shipment inbound or outbound produces its own paperwork. Then there's the fact that many companies don't use just one carrier or mode, but multiple, leading to a growing heap of invoices on your accounts payables desk.
In addition to that, each vendor has a unique invoice format and billing cycle. This makes accurate reconciliation, and on-time payment even more complex for your finance department. With consolidated freight invoicing, you can kiss all of those issues goodbye, and your finance department will thank you.
Consolidated Freight Invoicing combines all of your shipments, from each carrier you work with, into one, streamlined invoice that can be automatically merged into your TMS software. You can then sort your shipments by the carrier, pro number, date, weight, cost – all with one click.
The Solution to Finance and Logistics Collaboration
More often than not, the logistics/transportation manager is not the one responsible for the freight account management. That role is typically reserved for the finance department or CFO. The issue here is there is often a disconnect between these two departments with no set process to close the communication loop.
The person handling the invoices in accounting isn't always tuned in to what the rates should be, accessorial charges, and other unknowns which can make in-house freight auditing difficult and high-risk for overpaying invoices.
The logistics manager, on the other hand, has the knowledge of freight rate and working with carriers, but isn't seeing the big picture of how it all affects the bottom line. With consolidated freight invoicing both departments are better informed, and the cost savings of effective freight management can be attained.
The Benefits of Consolidated Freight Invoicing
Data Analytics & Reporting
Consolidated freight invoicing gives you clean, detailed, accurate data perfect for data analytics and reporting. You can easily track accessorials, fuel surcharges, mileage, frequency to state, price per pound, and much more.
On Time Payment
When a streamlined procedure is in place, consolidated freight invoicing produces a shorter turn-around time on payment processing. This ensures that accounting can close the books on time every month, as well as eliminate late fees.
Eliminate Duplicate Payments
Once the payments for these invoices are sent out, there will be a status change within the TMS system allowing you to see the date, time and reference number of each payment. This eliminates duplicate payments, saving you money.
One Check and You're Done
Without consolidated freight invoicing, accounting could be processing 30-40 payments a week. With this program in place, the auditing is done on the front end and the finance department then has the ability to upload pro numbers or reference numbers into their accounting platform globally instead of rattling off checks and logging them individually each week to multiple vendors or carriers.
TMS Integration
Your consolidated freight invoices should be automatically updated into your transportation management system weekly, giving you expanded functionality when it comes to your data.
- Request a freight invoice adjustment
- Access all supporting documents such as the BOL or re-weight certificates
- View all previous shipments by date, carrier, consignee or pro number
Final Thoughts
Consolidated freight invoicing streamlines your invoicing and payment process, giving your finance team the opportunity to focus on other tasks and your logistics team transparent, easy-to-find shipment data.
When looking for a logistics partner, don't forget to ask if they have consolidated freight invoicing as one of their services. Redwood's Modern 4PL approach can assist with all of your freight accounting needs including auditing, consolidated invoicing and payment. Contact us today for a free consultation, and to learn how we increase your supply chain efficiency and earn your finance department's appreciation.
FAQs
What is consolidated freight invoicing?
Consolidated freight invoicing combines shipments from multiple carriers into one streamlined invoice. Instead of processing separate paperwork for every parcel, LTL, or truckload move, accounting receives a single view that can be merged into a TMS. That makes it easier to sort shipments by carrier, pro number, date, weight, or cost without chasing down multiple vendor formats.
How does consolidated freight invoicing help finance and logistics teams work together?
Consolidated freight invoicing creates a shared process that reduces the disconnect between finance and logistics. Accounting gains cleaner shipment and payment data, while logistics can provide the context needed to interpret rates, accessorial charges, and carrier behavior. The result is better communication, less risk of overpaying invoices, and stronger freight management decisions.
What are the main benefits of consolidated freight invoicing?
The main benefits are cleaner reporting, faster payment processing, fewer duplicate payments, and simpler invoice handling. It also improves visibility into freight data such as accessorials, fuel surcharges, mileage, frequency to state, and price per pound. For many shippers, that means less manual work and more accurate financial control.
How does consolidated freight invoicing improve freight auditing?
Consolidated freight invoicing improves freight auditing by putting more of the review work on the front end. With one structured invoice process and supporting shipment data, accounting can compare charges more consistently and reduce the risk of missing errors. That matters when rates, accessorials, and carrier terms need to be checked before payment goes out.
Can consolidated freight invoicing reduce duplicate payments?
Yes, consolidated freight invoicing can help eliminate duplicate payments by creating a clearer payment status trail in the TMS. Once a payment is sent, the system can show the date, time, and reference number, making it easier to confirm what has already been paid. That visibility reduces the chance of paying the same invoice twice.
How does consolidated freight invoicing work with a TMS?
Consolidated freight invoices can be automatically updated into a transportation management system on a weekly basis. That integration gives teams expanded access to shipment data and supporting documents, including bills of lading and re-weight certificates. It also makes it easier to request invoice adjustments and review shipments by date, carrier, consignee, or pro number.
When should a shipper ask about consolidated freight invoicing from a logistics partner?
A shipper should ask during carrier or logistics partner evaluation, especially if the company handles multiple shipments, multiple carriers, or a high volume of invoices. Consolidated freight invoicing is most useful when finance needs a simpler payment process and logistics needs better shipment visibility. It is a practical capability to confirm before committing to a partner.
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