1. of questions that can be better
answered when you have ac-
cess to rich true Operational
Business Intelligence.
Transparency is also provid-
ed when spend data is readily
available to all supply chain
partners and can be used to
achieve efficiencies in costs
and time-to-market delivery
for goods and services. Se-
lecting the right suppliers to
handle your transport and
logistics, while at the same
time ensuring all movements
are executed in compliance
with contracts and tariffs, is a
complicated science that re-
quires accurate and timely
data.
Auditing of freight invoices is
not routinely done or is done
in a very limited manner,
which means that many com-
panies are leaving millions of
unclaimed overcharges on the
table. In many cases the base
freight may be less than the
accessorials or other arbitrary
charges on many shipments.
However, utilizing a sophisti-
cated electronic rating process
Companies, manufacturers,
and distributors spend billions
on transportation movements
across global regions, utilizing
different modes of transport
and multiple service levels. In
addition, numerous transpor-
tation providers are used,
invoices are billed in multiple
currencies and supply chain
data may be contained in dis-
parate systems. Many execu-
tives are creating mandates to
bring costs under control and
the logistics team is in the
‘cross hairs’ of many of these
executives.
Visibility into the “who, what
and where” of global freight
spend is a primary goal of all
supply chain professionals. By
removing and integrating the
silos of information, freight
spend can help identify oppor-
tunities for direct cost savings,
pinpoint poor supplier relation-
ships and uncover inefficien-
cies in supply chain opera-
tions. Are distribution centres
in the correct location? Has
our market shifted? Should we
consider setting up cross dock
facilities? These are the types
ensures that all line items are
fully audited and cost avoid-
ances are identified and cor-
rected before invoices are
paid.
Outsourcing to a freight pay-
ment service expert provides
an extremely detailed audit
process and ensures that in-
voices are paid correctly up
front while eliminating the
costly process of having to file
claims after the process.
The procurement process is
also greatly enhanced by using
freight spend data to support a
closed loop process. Spend
data is used as a tool to create
the RFP’s in the procurement
process and is considered a
best-in-class process.
The freight audit and payment
process provides a strategic
advantage by allowing compa-
nies to better manage their
supply chain data on a global
scale.
Executive Summary:
Freight Bill Audit and Payment—What is it?
The name alone says a lot– at
its core, the industry is about
the proper Audit and Payment
of Invoices in the Supply Chain
sphere.
But what does that really
mean? As above, we see that
the core objectives of Freight
Bill Audit and Payment trans-
cend this simple objective. The
Supply Chain manager of to-
day needs much more from
these stacks of transportation
provider invoices than timely
and accurate payment.
The reality is, of course, that
we live in a heavily data-
centric world, where the mod-
ern Supply Chain Executive
specifically needs up-to-date
and accurate details of their
transportation spend to make
critical decisions on the future
of an organization’s varied
logistics networks.
Data Entry, Audit, and Pay-
ment are still key components
to a successful Freight Bill
Audit and Payment program:
but best-in-class performance
goes well beyond these basics.
Making sure invoices are paid
correctly according to your
supplier contracts is key– but
understanding your network is
far more important.
Freight Bill Audit and
Payment: An Introduction
Points of Interest:
What is Freight Bill Audit
and Payment?
An Overview of the Key
Process Steps.
Supply Chain Visibility.
Key Notes on Value Added
Tax.
JANUARY, 2012
Copyright© 2004-2012 iMagine Global Solutions Inc.
• Proprietary & Confidential • Do Not Distribute • All Rights Reserved •
All Information, Data and Materials Provided on an "AS-IS" Basis, Without Warranty or Representation of Any Kind.
[Global Visibility of the Supply Chain via the iFocus Dashboard]

2. 1—Receipt of Invoices:
The transportation providers will send their invoices
with all supporting documents directly to the freight
payment company. Invoices are received in paper
hardcopies at our mail centers globally, electronically
via EDI or PDF, or through our web portal. Once re-
ceived, all of the paper invoices and supporting docu-
ments are scanned, indexed and digital images are
created for enhanced workflow automation.
2—Data Entry, Data Validation, and Rating:
After documents have been scanned, the key data
elements are captured from each invoice and addition-
al information may be captured from supporting docu-
mentation as required. Customer specific data ele-
ments can also be captured based on predefined busi-
ness rules. Bill of lading numbers, delivery numbers,
purchase order numbers and other shipment related
references are also captured and can be used for a
“Match Pay” process. In a ‘Match Pay’ process, these
unique reference numbers can be matched to ERP
systems like SAP or Oracle or any other proprietary file
for shipment validation and data population from the
customer’s database. Core data checks based on cus-
tomer specifications authenticate that the invoice
should be paid by the customer [valid location, account
number, etc.], and that the transportation provider is a
valid supplier for your organization. Once invoices have
passed these checks, they are rated against the cus-
tomer’s existing supplier contracts and tariffs for accu-
racy, and if necessary– invoice corrections are made
visible to the supplier via e-mail. The Data Load pro-
cess through eLoader also includes a comprehensive
duplicate check– including invoice number, shipment
number, shipment dates, charge amounts, etc.
3—Exception Management:
Exceptions can be caused by failed business rules,
incorrect or missing data, approval required for specific
charges and payment amount disputes related to rat-
ing errors. Based on the type of exception, invoices
will be automatically routed to the iResolution™ web
portal tool. The proper parties are notified by email
so that the appropriate action can be taken. Items
requiring the customer’s attention are posted to the
customer’s queue in iResolution,™ and items requir-
ing the Transportation Provider’s attention are posted
to the Transportation Provider’s queue in iResolu-
tion,™. A third potential queue, known as Collabora-
tion allows for the customer, the transportation pro-
vider, and nVision Global associates to resolve in-
voice disputes in an automated workflow between all
three parties.
4—Cost Allocation:
Automated General Ledger Coding is an key step of
invoice processing: this customized business logic
allows for a systematic allocation of individual costs,
accessorial charges, VAT and applicable taxes to the
correct cost centres. Customized file feeds can be cre-
ated for uploading directly into the customer’s ERP
system to further eliminate manual posting methods.
Similarly, through the use of match-pay processes,
Accrual files may be created to create a clear picture of
paid & outstanding items by individual cost allocations
within the customer’s organization.
5—Closeout, Preparing For Payment:
The invoices are processed in weekly cycles meaning
that all bills processed during a week are batched for
payment according to the customer’s financial sched-
ule. Payment terms can easily be customized to max-
imize your company’s working capital or cash manage-
ment requirements. This allows for better control of
your DPO (days payable outstanding), which may be
an important consideration for the Treasury or Finance
organization. Detailed weekly summary reports are
then delivered to all customers.
nVision Global’s Five Key Processing Steps:Page 2
‘Tomorrow’s
Vision Today.’

3. “Accurate, real
time data is a
must for any
company to
ensure business
strategy
compliance and
realization of
supply chain
optimization.”
In most instances, the auditing of
Value-Added Tax requires that any
adjustments identified due to a
rating error are processed with an
associated credit memo from the
supplier. nVision Global’s process
notifies the supplier of the error,
and provides them appropriate
detail to issue the credits as re-
quired so that payment can be
made in a compliant manner with
the relevant tax authorities global-
ly.
Additionally, once payments are
made- invoices can be returned to
customers in a variety of ways to
Value-Added-Tax is a system of
indirect taxation used by over 130
countries globally- however, for
customers in Europe, processing of
Value-Added-Tax is always a fore-
most concern due to the fiscal re-
quirements of each member state
and the reclaimable costs that can
be lost in a deficient process.
While Freight Payment is not itself
a compliance or reclamation service
for Value-Added-Tax, the process
facilitates both key corporate ac-
counting areas through extensive
data capture and customer busi-
ness controls.
satisfy invoice archive retention
requirements. This can be managed
directly by the customer in a paper
archive format, or [where permit-
ted by law] nVision Global can
supply a digital archive CD of all
processed images, as well as
through our long term hosting solu-
tion iHistorical Plus.™
Do you audit the line item charges
of your supplier invoices?
Are invoices automatically rated
through a rules-based rating en-
gine?
Are all contracts, rate agreements,
and tariffs stored in a central re-
pository that is accessible online?
Are General Ledger Accounting
Codes assigned by an automated
logic?
Do you provide web-based access
Some key thoughts to consider
when Benchmarking your current
Freight Payment procedures:
What is your cost to process an
invoice internally? Staff, IT Sup-
port, Supplier Management, Man-
agement oversight, etc.
Are paper invoices and all support-
ing documentation scanned upon
receipt and electronically routed
using automated workflows?
What percentage of your invoices
are processed electronically?
to your transportation providers for
freight bill payment inquiry and
dispute management?
Do you have a consolidated data
warehouse that provides sophisti-
cated real-time analytics on your
Supply Chain Spend?
We offer a strong suite of expert, easy to use, opera-
tional business intelligence tools enabling you to ac-
cess any detailed level of information - 24 / 7 through
the Internet.
These tools allow a granular visibility to the inner se-
crets of your supply chain, tailored to support any
need of our professional customers.
Accurate, real time data is a must for any company to
ensure business strategy compliance and realization of
supply chain optimization.
The fact that companies consistently strive to create a
clear real time picture of the global cost of transporta-
tion confirms that present-day visibility in most organi-
zations does not meet the requirements of today’s
supply chain.
From the entry of the bill forward, [either through
paper or electronic delivery methods], the key data
elements from both the invoice and supporting docu-
ments are captured along with relative costs, deliver-
ing real time global transparency and visibility. This,
along with powerful analytical tools, empowers you to
improve your supply chain optimization and to realize
additional cost reduction opportunities.
Page 3
‘Tomorrow’s
Vision Today.’
Visibility
Key Notes on VAT:
Benchmarking Your Existing Process—Key Questions

4. CONTROL:
Outsourcing of the freight bill audit and payment activities to a specialized provider brings a reliable control
mechanism to all entities and geographical markets in which you are doing business. It also allows for compliance
with increasing reporting requirements and allows the procurement function to benefit – having a central reposi-
tory of historical transportation cost data and up to date provider contracts and rate information available.
COST EFFICIENCY:
An efficient process for ordering transportation services, fulfilment, and administrative and financial settlement
realizes considerable cost reductions. The Transportation Provider’s inquiries are eliminated through the ability to
access invoice and resolution status thus avoiding spending non-core business efforts trying to resolve non-
compliant invoicing issues. The freight bill audit and payment process eliminates the risk of paying duplicate or
erroneous invoices, delivering transportation cost reductions and contract compliance.
VISIBILITY AND BUSINESS INTELLIGENCE:
24/7 access to updated real-time data covering shipment, financial and Transportation Provider performance
(KPI) measurements delivers considerable value visualizing “as is” and reveals business optimization opportuni-
ties.
About nVision Global:
Since its inception, nVision Global has evolved from a regional Freight Payment company to one of the fastest
growing Global Freight Audit, Payment and Logistics Management service providers in the industry. nVision
Global boasts facilities on four continents, superior technology, quality services and comprehensive business
intelligence applications second to none.
As we Partner with our customers, we are committed to listening and dynamically customizing our processes to
support each of their unique business requirements. Our commitment is to provide each customer with respon-
siveness that is unparalleled in the industry. We are dedicated to this philosophy because we understand that a
successful relationship depends on the delivery of state of the art technology, quality focus, flexible processes,
unparalleled service and global business intelligence.
Find us online at
www.nVisionGlobal.com
Page 4
‘Tomorrow’s
Vision Today.’
Freight Bill Audit and Payment: A Summary
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