How much shipping cost visibility does your finance team actually have
Shipping sits in this awkward zone where finance approves it at the aggregate level but rarely examines it per shipment, the monthly invoice comes in from FedEx or UPS and it gets paid as a lump sum without much scrutiny on what is actually being charged.
The gap between what was contracted and what is billed can be significant and it compounds over time but without real visibility into surcharges, service failures and rate compliance there is no way to quantify the leakage It cuts two ways too. Finance rarely knows whether the negotiated rates are even competitive to begin with so the gap is both the billing errors on the invoices and whether the underlying rates should have been benchmarked and renegotiated a long time ago.
For companies spending six figures a year on parcel shipping this is not a rounding error, it is a material budget line that often has zero operational oversight from the finance side