One truck, too many charges: $2.2M recovered from over billing pattern discovered

Challenge

With an extensive global supply chain, this client was processing a high volume of freight invoices through a third-party payment provider. While processes appeared to be running smoothly, freight costs were steadily rising—and no clear explanation was available.

Outcome

What appeared at first glance to be standard billing activity quickly revealed a deeper, more costly issue. ConData’s audit team took a granular, line-level approach—cross-referencing shipment details, contract terms, actual movement data, and mode classifications. This allowed us to uncover a billing pattern that had gone undetected for years under the assumption of routine processing.

Industry

Manufacturing

Regions

North America, EMEA, APAC

Table of contents

Client profile at a glance

  • Industry: Fortune 50 Global Manufacturer

  • Annual Audited Freight Spend: $350+ million

  • Shipping Profile: Global, all transportation modes (LTL, TL, Parcel, International)

  • Payment System: Third-party freight payment provider

The Challenges

With an extensive global supply chain, this client was processing a high volume of freight invoices through a third-party payment provider. While processes appeared to be running smoothly, freight costs were steadily rising—and no clear explanation was available.

This Fortune 50 Global manufacturer sought to:

  • Better understand the root cause behind increasing freight costs.

  • Ensure billing practices by preffered carriers were aligned with contracted terms.

  • Gain greater visibility and control over how freight charges were being applied across all shipment types.

The solutions

What appeared at first glance to be standard billing activity quickly revealed a deeper, more costly issue. ConData’s audit team took a granular, line-level approach—cross-referencing shipment details, contract terms, actual movement data, and mode classifications. This allowed us to uncover a billing pattern that had gone undetected for years under the assumption of routine processing.

By illuminating this discrepancy, ConData was able to:

  • Detect a billing pattern in which the client’s preferred carrier was leveraging a daily pickup clause to apply Truckload (TL) rates to multiple Less-than-Truckload (LTL) shipments.

  • Establish that the carrier was consolidating multiple LTL shipments into a single TL pickup, yet billing each shipment separately at full truckload rates.

  • Collaborate with the client to confirm contractual intent and correct future billing practices through updated audit parameters.

The results

  • $2.2 million in overcharges were identified and successfully recovered.

  • Freight payment review processes were updated to flag and prevent similar billing patterns in the future.

  • The client was able to renegotiate carrier terms based on audit findings, improving contract enforcement and financial performance.

Overall business impact

This is a great example of how a single clause —when misused—can lead to significant financial loss across a highvolume shipping network. Thanks to ConData’s deep industry experience, proprietary audit technology, and hands-on investigative approach, the client recovered $2.2 million that had been quietly leaking from their transportation budget.

Even more importantly, ConData’s findings helped the manufacturer regain confidence in their freight operations, ensured long-term cost protection, and strengthened their ability to hold partners accountable moving forward. When freight billing practices veer off course, ConData finds the road back.