Are you getting refunds from your provider?

Freight audit and payment (FAP) firms are typically listed as a "bill to" party in carrier systems to ensure they receive invoices for a shipper.  This designation also means that if a carrier issues a refund, the funds are sent to the company listed as the "bill to" party; aka your FAP firm.  As part of annual due diligence, all shippers should validate they are receiving refunds from their provider.  Even if your company handles payments to the carriers, refunds are still going to occur and likely will be sent to your FAP firm.  A3 recommends that shippers:

  • validate the steps that your current provider follows to receive, research, and refund monies sent to them by your logistics providers. 
  • Request refund statements from the carrier base, annually, and validate these funds have been received and returned to them by their provider

If your company has never received a refund, this is a significant red flag that should be examined.

Posted by Craig Cameron at 14:04