How a specialty chemicals manufacturer used IntelliTrans freight invoice managed services to audit linehaul invoices against its contract rates to avoid freight overcharges.

$1.4M

in billing errors caught before payment

3.9%

of total 2025 freight spend

About $37M

7

railroads

199 railcars covered by the corrected invoices

In 2025, the IntelliTrans rail freight audit team disputed over a million dollars in exceptions before a specialty chemicals and polymers customer paid them. The audit team reviewed linehaul invoices from seven railroads and disputed 240 of them, ensuring that the carriers updated the invoice to bill the customer correctly.

The challenge

A new rate year starts with contracts settled and rates in place. Then the invoices started to arrive. The exceptions alerts began to tally up as the invoices weren’t matching what had been agreed to. Some invoices were billed at public rates instead of contract rates, or at lane rates that didn’t match up. Some had mixed rates or repeated a charge. Some billed the company for freight that was another party’s responsibility.

Each of the seven railroads, including six Class I, has its own billing, its own portal, and its own process for resolving a billing discrepancy. The team knew its contracts, but auditing invoices against a new rate set meant matching every bill to them line by line, then chasing each mismatch with the right railroad. That is work that takes time and knowledge all while needing to manage the task of moving their everyday rail freight.

The solution

Using the IntelliTrans TMS rail platform, the company was able to determine it had a large amount of invoice reconciliation to manage. Instead of pulling its own team off day-to-day work, it brought in the IntelliTrans rail freight audit team through a managed services agreement. The company gained a team working inside its own TMS to identify every incorrect invoice, handle disputes in a timely manner, and ensure no payments were made on incorrect invoices.

What the manufacturer gained:

  • Contract rates corrected. The audit team checked the rates in the TMS against the signed contracts and corrected the rates that had been entered incorrectly.
  • Every related shipment accounted for. The team used the TMS to find the shipments and details related to those exceptions for invoice reconciliation.
  • Every exception reviewed before payment. Each flagged linehaul invoice was checked against the verified contract rates before payment.
  • Disputes handled across seven railroads. The team disputed each billing error directly with the railroad on the company’s behalf and followed it through to resolution.

The company’s contracts set the rates. The audit team made sure every invoice honored them.

The results

In 2025, the IntelliTrans freight audit team reviewed 243 flagged invoices. 240 were closed with corrections, each fixed before payment.

Type of billing error Invoices Caught before payment
Billed at public or incorrect lane rates instead of contract rates 154 $976,730
Mixed-rate, duplicate, and other billing corrections 70 $317,491
Charges that belonged to another party 16 $135,607
Total 240 $1,429,828

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Every dollar was caught before payment, so no refunds had to be managed or chased down. More than 60% of the errors came from the carriers billing at incorrect rates. A single bill at the wrong rate can pass for normal. Across a rate change and seven railroads, it added up to almost 4% of their annual freight spend.

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About IntelliTrans managed services: An experienced IntelliTrans team works inside your IntelliTrans TMS instance on the detailed invoice work: auditing, rating and validation, dispute follow-up, reporting, and payment coordination.

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Planning for a new rate cycle or need support with your invoice auditing?
Talk with our team about rail freight invoice audit services.
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