Program Overview
This program equips logistics, procurement, and commercial professionals with tools and methodologies to control and reduce freight expenses through cost benchmarking and freight audit mechanisms. Participants will learn how to analyze freight rate structures, benchmark against market trends or peer lanes, and evaluate cost per ton/km, freight-to-sales ratios, and regional logistics index data. The course also covers freight audit best practices—such as invoice verification, duplicate billing checks, detention and demurrage validation, and reconciliation processes. Real-world examples from FMCG, manufacturing, and distribution sectors illustrate audit-driven savings and compliance controls.
Features
- Benchmark freight costs using internal trends and external market data
- Structure cost-per-lane analysis and transport index-based reviews
- Conduct structured freight audits to validate rates, routes, and charges
- Identify cost leakage, overbilling, and contract compliance gaps in freight invoices
Target audiences
- Logistics Managers
- Commercial & Finance Controllers
- Freight Procurement Professionals
- SCM Analysts
Curriculum
- 5 Sections
- 24 Lessons
- 1 Day
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- Freight Cost Structure & Contracting Models5
- 1.1Concepts: Component-wise cost breakdown for air/sea/road/rail
- 1.2Buzzwords: Line Haul, Fuel Surcharge, THC, CAF, BAF, FSC, Accessorial Charges
- 1.3Types of Contracts: Fixed vs Floating Rate, Slab-based Pricing, Min Billable Weight
- 1.4Case Study: Manufacturing firm overpaid due to unnoticed slab jumps in ocean freight contract
- 1.5Toolkit: Cost component sheet for 3 modes + contract rate card review checklist
- Freight Cost Benchmarking Framework6
- 2.1Market-based
- 2.2Historical trend-based
- 2.3Peer benchmarking (3PL data, lane cost audits)
- 2.4Keywords: Lane Benchmarking, Lead Time vs Rate Curve, Freight Spend Index
- 2.5Real-life Insight: Electronics major renegotiated India–Middle East lane by 18% after benchmarking
- 2.6Exercise: Analyze benchmark vs actual cost across 5 sample lanes
- Freight Audit Process – Internal vs 3rd Party4
- 3.1Scope: Invoice audit, duplicate billing detection, SLA-linked payments, error reconciliation
- 3.2Keywords: Pre-Audit, Post-Audit, 3-Way Match (PO–Invoice–Shipment), Audit Exceptions
- 3.3Case Study: Chemical firm recovered ₹4.8 Cr in duplicate invoices over 2 years
- 3.4Checklist: Audit flow – from invoice receipt to vendor reconciliation and closure
- Freight Data Analytics & Reporting5
- 4.1Concepts: Spend cube creation, rate deviation tracking, audit dashboards
- 4.2Keywords: Lane-wise Cost KPIs, Freight-to-Sales Ratio, Volume-based Rate Dilution
- 4.3Real-life Insight: Textile firm added dashboard-led freight review into monthly SCM meetings
- 4.4Freight Audit Dashboard Template
- 4.5Error Flag Tracker (Accessorial mismatch, overbilling, duplicate load entries)
- Negotiation Levers from Audit Insights4
- 5.1Concepts: Tonnage leverage, seasonality, carrier utilization, backhaul rate discovery
- 5.2Keywords: Spot Market Intelligence, Fuel Pass-through Logic, Contract Renewal Triggers
- 5.3Case Study: Retail chain used freight audit analytics to secure rate protection clause from 3PL
- 5.4Simulation: Prepare audit-driven negotiation case with freight partner – role-play
Instructor
