Global Parcel And Freight Audit And Payment Market By Type (On-Premises, Cloud-Based), By Application (Small and Medium Enterprises (SMEs), Large Enterprises), By Region, And Segment Forecasts, 2023 t...

Market Overview:

The market for parcel and freight audits and payments has reached a considerable valuation, symbolising its growing importance in the global trade and logistics framework. In freight audit and payment services, a freight audit reviews carrier bills to ensure charges match the agreed price between the shipper and carrier. This involves checking for overbilling, incorrect billing or double charges by verifying each fee against the quoted or contract price. The goal is to identify discrepancies quickly, prevent overpayment and enhance understanding of the logistics process. 

The global parcel and freight audit and payment market was valued at USD 781.40 billion in 2023 and is projected to reach USD 2097.75 million by 2031, growing at a CAGR of 13.22% from 2023-2031. The rise in omnichannel retail, the complexity of pricing and billing structures in the transportation industry and the growing demand for reliable and quick shipping services are some of the factors driving market growth. Auditing freight and shipping invoices is crucial, whether shipping occasionally or regularly. It helps shippers save money by recovering costs from errors and provides insights into operations to enhance delivery efficiency.

Premium Insights:

• Shift towards cloud-based solutions is one of the significant trends observed, as companies seek scalable and remote-accessible solutions to manage their extensive logistics and operations.

• The increasing engagement of small and medium enterprises with the freight audit and payment market has not only optimized their logistics but has also ensured considerable cost savings.

Global Parcel And Freight Audit And Payment Market Dynamics:

Drivers: Need for cost optimization & visibility, growing intricacy of pricing & billing structures and data security concerns.

-In a competitive logistics landscape, businesses are under pressure to optimize shipping costs and gain greater control over their transportation spend. FAP solutions provide detailed reports, identify areas for cost savings, and allow for negotiation with carriers based on accurate data.

-Shipping costs are influenced by various factors like weight, dimensions, distance, fuel surcharges, and accessorial fees. Parcel and Freight Audit and Payment (FAP) solutions help businesses navigate these complexities, ensure accurate billing, and identify potential errors.

-FAP solutions can help businesses ensure compliance with complex international trade regulations related to customs documentation and duty payments, reducing the risk of delays and penalties.

Restraints: Legacy systems & integration challenges, Pricy implementation & maintenance and shortage of skilled personnel.

-Many businesses still rely on outdated logistics management systems, making integration with new FAP solutions complex and expensive. Upgrading legacy systems or finding compatible solutions can be a barrier to adoption.

-While FAP solutions can lead to long-term cost savings, the initial implementation costs for software, training, and potential system upgrades can be a deterrent for some businesses, especially smaller ones.

-Effectively utilizing FAP solutions requires personnel with expertise in logistics operations and data analysis. A shortage of skilled professionals can limit the full potential of these solutions, particularly for smaller businesses.

Opportunities: Advancements in cloud-based solutions & AI integration, expansion into niche markets and focus on accessibility.

-The development of cloud-based FAP solutions offers greater accessibility, scalability, and lower upfront costs for businesses. Additionally, integrating Artificial Intelligence (AI) can automate data analysis, identify cost-saving opportunities, and predict future shipping costs.

-Developing specialized FAP solutions for specific industries like e-commerce, pharmaceuticals, or cold chain logistics can attract new customer segments and cater to their unique needs.

-Mobile-friendly FAP solutions allowing for real-time access to shipping data and analytics can enhance operational efficiency and provide greater control over transportation costs for businesses on the go.

Market By Parcel And Freight Audit And Payment Type Insights:

Based on freight type, the market can be segmented into Domestic and International freight. The international freight segment dominates a major portion of the market as the global web of trade networks, intertwined with the complex cross-border regulations, duties and tariffs necessitates a robust audit and payment system. The expanding e-commerce market is also a reason for the segment dominance as data suggest that more than 25% of the e-commerce transactions are now cross-border, requiring sophisticated freight audit mechanisms to manage the complexities of international logistics.

Based on service type, the market can be divided into contract management, cost allocation

data capture, audit and analysis, exception management, and payment processing. Payment processing holds a major share of the market as the essence of any freight operation comes down to transactions. Payment processing is not merely about transferring funds but encapsulates the complexities of contracts, tariffs and regulatory compliance. Payment delays can severely hamper supply chain efficiency.

Based on Application, the market can be divided into a lot of segments like Ocean Freight Audit, Road Freight Audit, Air Freight Audit, Rail Freight Audit, Parcel Audit and Warehouse Freight Audit. The road freight audit holds a dominant market share due to rapid urbanization and the rise of e-commerce platforms leading to more than 60% of the goods being transported via roads globally. The flexibility of road audit, allowing for door-door service without the need for extensive loading and offloading is a primary reason necessitating the demand for efficient auditing systems tailored for road transport logistics. 

Based on deployment, the market is segmented into Cloud-based and On-premise. Cloud-based solutions offer scalability, accessibility, and reduced IT infrastructure burden for businesses. This makes them particularly attractive to SMEs and companies seeking a flexible and cost-effective solution.

Market By End-Use Insights:

Based on end-use, shippers i.e. the companies sending the goods, are expected to be the dominant end-user segment in 2024. A&P solutions empower shippers to manage transportation costs effectively, identify carrier discrepancies and optimise their supply chain efficiency. Hi-tech, Retail, Industrial manufacturing, and consumer products are some primary industries under shippers.

Market By Region Insights:

Based on regional coverage, the market can be segmented into North America, Asia-Pacific, Europe. North America dominates the market with over 35% of the share. The U.S and Canada are the biggest markets due to them being at the forefront of logistical innovations. The region also has a well-established e-commerce market with approximately 71% of the population regularly making online purchases. Intermodal transportation which is also on the rise the region has asserted the market’s dominance, driving the need for efficient freight audit systems in this market.

Competitive Scenario:

Major players in the region consists of Accenture, CTSI-Global, Cass Information Systems, Inc., ControlPay (TRANSPOREON GmbH), Tungsten Network, Logistics Plus Inc, Data2Logistics, LLC, Trax Technologies Inc., Körber AG,  and Intelligent Audit.

Scope of Work-Global Motorhome Market

Key Market Developments:

• June 2024-The partnership between Loop, the cutting-edge audit and payment platform for the next generation supply chain, and J.P. Morgan Payments will make financial operations more profitable and accessible for all shippers, carriers, and third-party logistics providers. Together, Loop and J.P. Morgan Payments will increase working capital through freight payments and foster closer ties based on trust, speed, and transparency between shippers and carriers.

• June 2024-Leading provider of parcel transportation management software (TMS), Sendflex Technology Inc., announced a strategic alliance with Tech Mahindra (NSE: TECHM), a major worldwide supplier of digital solutions and technology consulting to businesses in various industries. Global logistics, retail, life science, and telecom companies will receive automated supply chain solutions, simulations, and planning for parcel optimisation from this partnership.

• May 2024-Generix, a global business software company that provides a comprehensive range of SaaS solutions and services in finance, commerce, supply chain, and B2B integration, has introduced numerous innovations for its two WMSs. These innovations include labour planning and forecasting that are powered by AI, as well as predictive and prescriptive analytics.

Frequently Asked Questions (FAQs)

1.What drives the growth of the parcel and freight audit and payment market?

Ans. Key drivers include the need for cost optimization & visibility, growing intricacy of pricing & billing structures and data security concerns.

2. What are the major challenges in the market?

Ans. Challenges include legacy systems & integration challenges, Pricy implementation & maintenance and shortage of skilled personnel.

3. Who are the key players in the market?’

Ans. Key industry players include Accenture, CTSI-Global, Cass Information Systems, Inc., ControlPay (TRANSPOREON GmbH), Tungsten Network, Logistics Plus Inc, Data2Logistics, LLC, Trax Technologies Inc., Körber AG,  and Intelligent Audit.

4. What opportunities exist in the market?

Ans. Opportunities include advancements in cloud-based solutions & AI integration, expansion into niche markets and focus on accessibility.