What Freight Claims and Taxes Have in Common

freight-claims-taxes-common_transolutions

Richard Lucarelli, the VP of Sales and Marketing at CDS Freight Claim Management recently shared some information about claims management with us, and we would like to pass it along to you! Here is what he had to say:

What Freight Claims and Taxes Have in Common

Nothing is sure in life except death, taxes…and freight claims.

On the surface, both claims management and tax filing seem like a simple matter of data entry. But everyone knows that hiring the intern to do your taxes would be far costlier than hiring an experienced accountant. And just like taxes, successful claim resolution requires detailed knowledge of the applicable laws.

Dick Lucarelli of CDS shares the common signs that you need to bring in a firm that specializes in claims management and processing.

Are You Getting Enough Back?

One of the major reasons companies turn to CDS is because they realize that they’re filing a small number of claims compared to the amount of product they’re shipping.

How many is enough? “You should be claiming roughly 1 -2% of your revenue,” says Lucarelli. So, for every $1 million in revenue, you should expect to claim $10,000 - $20,000. If you’re well below that number, chances are you’re missing some claims.

Look For New Refund Opportunities

Sometimes the carrier will reject your claim because it they do not feel it is their fault. But Lucarelli doesn’t stop there – if it’s a packaging issue, he’s still able to send a rebuttal and fight the carrier’s declination or show you how to file a claim against the vendor.

And then there are cases where the customer claims a lost shipment, the company refunds them, but the shipment arrives later. When the claim is filed, the carrier will reject it. In this case, the customer can be rebilled. “Customer re-billings are a huge area that’s overlooked,” says Lucarelli. In some cases, he’s recovered hundreds of thousands of dollars for customers through re-billings.

Refile, Refile, Refile

Just like taxes, if you realize later that you’re owed a bigger refund, you can refile your claims. Lucarelli often refiles claims as part of his post-audit program, where he reviews filed or declined claims to see if more can be recovered. “Most clients are missing as much as 25% of claimable revenue, on many claims,” says Lucarelli.

Want to see how much more you could recover? For a free consultation, call 847-397-1993 or email Dick Lucarelli at info@freightclaim.com.