Freight audit and payment (FAP) services consist of invoice collection, preaudit, processing, payment and analytics of transportation invoices across multiple modes and regions. These services have expanded over the years to include transportation procurement services, benchmarking, advanced analytics and supply chain consulting expertise to provide customers with key insights from their freight spend data. The transportation industry faces continued volatility, causing organizations to look for insights and better control over logistics spend. As a result, demand for freight audit and payment services continues to rise due to lack of internal competency.
Gartner defines the supply chain cost-to-serve analytics technology market as the tools and solutions used to analyze and optimize the costs associated with serving customers. These technologies help businesses understand the true cost of delivering products or services to different customer segments, channels or individual customers. The goal is to improve profitability by identifying inefficiencies and making informed decisions about pricing, customer segmentation, product portfolio optimization and service levels.