Audit Procedures for Inbound Freight Discrepancies in Mass Retail
Audit mass retail inbound freight discrepancies by matching BOL signatures, EDI 856 data, and physical OS&D reports to recover invalid debit notes.
National Motor Freight Classification
Meaning
Standardized systems for grouping different types of commodities into categories based on transportability establish the basis for less than truckload shipping rates. The national motor freight classification assigns a class number to goods ranging from 50 to 500. This number reflects the relative ease or difficulty of moving the product considering its density, stowability, handling and liability.
Carriers use these numbers to ensure that the price of transport reflects the physical characteristics of the cargo and the operational effort required to move it.
Commodity Standard
Uniformity in descriptions allows carriers and shippers to speak the same language. Every product shipped under the national motor freight classification has a specific item number that dictates its class. Correctly identifying this number prevents billing disputes and ensures that the carrier applies the correct tariff.
Rate Determinant
Pricing fluctuates significantly based on the assigned category. A higher class in the national motor freight classification results in a higher cost per hundred pounds of weight. Lower classes apply to dense, durable goods that are easy to stack and unlikely to be damaged.
Freight Density
Physical dimensions play the most significant role in determining the category. If a product is bulky but light, the national motor freight classification will place it in a higher class to compensate the carrier for the lost space in the trailer. Precise measurements of weight and volume are necessary to verify that the freight class on the bill of lading is accurate.