Managing last mile delivery costs is a constant challenge for shippers. Despite careful planning, more than 80% of companies experience discrepancies between initial delivery quotes and final charges — leading to overspending, inefficiencies and strained carrier relationships.
That statistic comes from OneRail’s new survey of 300 finance leaders — a survey commissioned to better understand last mile payment and cost challenges. On a recent webinar, we shared and discussed these survey results with an expert panel that included:
- Ed Carse, CFO, OneRail
- Eddie Misicka, Vice President of Product, OneRail
- Joseph Vargas, Founder & CEO, Gojo Logistics
They explored the hidden costs of last mile delivery, the pitfalls of traditional freight audit processes and how automation can unlock 5-10% savings on freight spend, which can quickly add up to millions of dollars saved annually.
Want to know how your company can stop overpaying for last mile delivery? Keep reading for key insights, or watch the webinar replay here.
The Growing Cost of Last Mile Delivery & Why Shippers Are Overpaying
Last mile delivery is one of the most complex and costly parts of the supply chain. As consumer expectations for fast, reliable delivery grow, companies are spending tens or even hundreds of millions annually to keep up. But are they spending wisely?
According to Carse, many shippers are unknowingly overpaying due to freight audit and payment inefficiencies. These discrepancies often stem from:
- Rate fluctuations that change between the time of booking and final billing
- Human errors in invoicing and rate application
- Inflationary pressures that drive up costs unexpectedly
Vargas added that these issues don’t just affect shippers — they also create major cash flow challenges for carriers. Delayed payments and invoicing errors make it difficult for carriers to stay financially stable, which in turn impacts service quality and reliability.
The data confirms these concerns. OneRail’s survey of finance leaders found that 68% of companies suspect they are overpaying for last mile deliveries. But, without real-time visibility into their freight spend, many don’t realize just how much money is being lost.
Why Traditional Freight Audit & Payment Methods Are Failing
Too many companies are still relying on outdated manual processes to track and audit their freight spend. Spreadsheets, disconnected systems and manual invoice reviews exacerbate the issues, leading to errors and related overcharges, payment delays and disputes.
Without a centralized system in place, it’s nearly impossible for companies to catch these errors in real-time. When they do realize discrepancies, it’s too late to dispute them. This translates into millions of dollars in lost revenue and unnecessary costs. It’s a huge issue. In fact, 44% of survey respondents cited missed overcharges and discrepancies as their biggest freight audit and payment challenges.
The Solution: OneRail’s Freight Audit Pay & Claims
After identifying the widespread inefficiencies in freight audit and payment, OneRail set out to solve the problem at its core. According to Misicka, OneRail already had the technology to optimize last mile payments — but shippers needed a more advanced, automated way to catch discrepancies and submit disputes.
That’s the foundation of OneRail’s Freight Audit Pay & Claims, an innovative solution that digitizes contracts, rate cards and invoicing to eliminate errors and provide real-time visibility into freight spend. Key features include:
- A centralized claims portal to manage and resolve disputes quickly
- Real-time invoice verification to catch discrepancies before payments are made
- Automated audit capabilities to eliminate manual processing and reduce human error
By automating freight audit and payment, OneRail’s platform delivers tangible cost savings and operational efficiencies for both shippers and carriers. Shippers can now reduce billing errors and disputes, eliminate manual invoice matching and auditing — and ensure accurate and on-time payments.
The Business Impact: How Shippers Can Save 5-10% on Last Mile Payments
For shippers managing high delivery volumes, even small inefficiencies in freight audit and payment can translate into millions of dollars in unnecessary last mile payments. That’s why having a single source of truth is critical, Carse said.
By automating last mile payment processes, shippers can:
- Eliminate friction between shippers and carriers by ensuring accurate, on-time payments
- Prevent leakage and waste by catching discrepancies before they lead to overspending
- Bring transparency and trust to financial transactions, strengthening carrier relationships
For companies spending $100 million or more on last mile delivery each year, these improvements add up quickly. OneRail’s platform has helped high-volume customers reduce freight costs by 5–10%, creating significant savings while improving operational efficiency.
Take the First Step Toward a More Affordable Last Mile
The webinar made one thing clear: Last mile payment inefficiencies are costing shippers millions. Without real-time visibility and automation, companies risk overpaying, straining carrier relationships and losing control over last mile spend. Our expert panel shared that:
- Freight audit errors add up quickly: Shippers need real-time visibility into their costs to prevent overcharges
- Manual processes don’t scale: Spreadsheets and outdated methods lead to inefficiencies and missed savings
- Financial accuracy strengthens partnerships: Timely, accurate payments keep carriers running smoothly and improve service reliability
- Automation is transformative: OneRail’s Freight Audit Pay & Claims platform provides end-to-end automation, eliminating discrepancies before they become costly mistakes.
Don’t let freight audit inefficiencies drain your bottom line. Watch the full webinar for expert insights and to discover how OneRail is helping shippers save big on last mile delivery costs.
Ready to take the next step? Download the full report covered on the webinar, and schedule a demo to see how OneRail’s Freight Audit Pay & Claims solution can help you eliminate errors, optimize spend and build stronger carrier relationships.
