In today’s unpredictable parcel landscape — marked by soaring carrier rates, fluctuating tariffs, and tighter capacity — a Transportation Management System (TMS) alone isn’t enough. While a TMS excels at orchestrating shipments, comparing carrier options, and providing operational visibility, it often lacks the depth to tackle billing anomalies and complex auditing needs. That’s where a Freight Audit Partner (FAP) becomes indispensable, adding a level of cost oversight and compliance assurance that a TMS simply cannot provide on its own.
Why a TMS Falls Short
Despite handling essential logistics functions, most TMS platforms only perform basic matching — such as two-way or three-way validations — to confirm invoice accuracy. This limited scope is especially problematic now, with carriers introducing surcharges and restructuring services more frequently than ever. A TMS that isn’t actively updated or rigorously scrutinized can miss hidden fees, rate discrepancies, or data inaccuracies, leaving your bottom line exposed to unnecessary costs.
How a FAP Fills the Gap
A robust FAP scrutinizes every detail, from rate adherence and accessorial charges to routing compliance. While TMS-generated data provides a valuable baseline, a freight audit team or solution delves far deeper, verifying each line item and actively communicating with carriers to resolve billing disputes. For parcel shipments — where small fees and unpredictable transit times pose a high risk of extra cost — this level of continuous monitoring helps ensure that each invoice reflects true, negotiated rates.
TMS + FAP: A Strategic Combination
Pairing a TMS with an FAP delivers the best of both worlds. The TMS manages shipment planning, routing, and real-time visibility; the FAP confirms invoice accuracy, flags overcharges, and analyzes broader market trends. This synergy is particularly relevant in the current environment, where carriers frequently update pricing models and capacity constraints shift at a moment’s notice. By harnessing enriched data from a FAP, you can adapt your shipping strategies faster — whether that means renegotiating contracts or switching carriers to maintain service levels.
Staying Competitive in a Volatile Market
Companies facing rising transportation costs and new tariffs can’t afford oversight gaps in their logistics operations. Incorporating a freight audit process ensures that the data passing through your TMS is both accurate and actionable. When a TMS and FAP operate in unison, shippers gain unparalleled visibility into carrier performance, billing accuracy, and evolving service fees. With tariffs and surcharges often changing without warning, this comprehensive approach lets you spot cost-recovery opportunities and maintain a competitive edge in a constantly shifting marketplace.
Additional Insights
For real-world examples, testimonials, and a deeper look at how a TMS + FAP solution can enhance your logistics operations in an increasingly volatile market, download a free copy ofthis white paper with insights from Gartner ®.
Hannah Testani is CEO of Intelligent Audit. Since 1996, Intelligent Audit has been the global leader in multimodal freight audit, business intelligence, secure carrier payments, and AI-driven tools that optimize shipping operations. Their proprietary technology and deep industry expertise help the world’s top brands and SMBs ship smarter, faster, and more efficiently. Learn more at intelligentaudit.com.
