Monday, October 29, 2007

No need for an audit?

I was reading an article in the October 2007 issue of Logistics Management magazine by Ray Bohman about Cube based LTL pricing. The article looks at an alternative to the standard pricing using class ratings established by the National Motor Freight Classification (NMFC). It was an interesting article and worth reading.

What jumped out at me while reading it was this line: The system is also designed to eliminate freight bill auditing by outside firms. While I understand what the system's creators are getting at, I would suggest that there is always a need to have someone look at your bills. We have found mistakes under any number of pricing systems, whether class rated shipments under the NMFC; mileage rates, flat rates. As I said in my initial post on this blog, as long as human beings are pressing the buttons, there will be mistakes. Simpler rating systems might reduce the possible ways mistakes can happen, I don't think they will ever go away completely.


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