Midwest Auto Components
Automotive Parts Manufacturing · 280 employees · $42M annual revenue
The Challenge
Midwest Auto Components ships brake assemblies, suspension parts, and specialty fasteners to 60+ OEM customers across the Midwest and Southeast. Their shipping controller was manually spot-checking roughly 5% of invoices each month — a process that took 12 hours of staff time and still missed the majority of billing errors. After a consultant suggested they were likely overpaying, they enrolled in the FreightDetective.ai free 3-year historical audit.
The Solution
FreightDetective ingested 36 months of FedEx and UPS invoices — over 14,000 individual shipments — and ran each one through our 12-point audit engine. The engine cross-referenced contracted rates, applied weight-break rules, flagged dimensional weight discrepancies, and checked for duplicate billing. The entire analysis was completed within 72 hours of upload.
Billing Errors Identified
Dimensional Weight Miscalculation
$61,400 recoveredFedEx applied incorrect DIM divisors on 847 shipments of boxed brake rotors, inflating billable weight by an average of 3.2 lbs per package.
Duplicate Billing
$7,800 recoveredUPS billed 38 shipments twice during a system migration in Q3 2022. Each duplicate charge ranged from $84 to $312.
Residential Delivery Surcharge on Commercial Addresses
$9,200 recoveredFedEx applied residential surcharges to 214 shipments delivered to commercial dock addresses that were incorrectly flagged in their address database.
Contracted Rate Violations
$108,000 recoveredUPS charged standard retail rates on 1,100+ shipments that qualified for negotiated account pricing under their existing contract.
Results
| Total overcharges identified (3 years) | $187,400 |
| Dispute letters generated | 312 |
| Recovery rate (disputes accepted) | 94% |
| Net recovered to date | $176,200 |
| Ongoing monthly savings | $5,200/mo |
| Staff hours freed per month | 11 hours |
"I honestly didn't expect much from the free audit — I figured we'd find a few hundred dollars in errors. When the report came back showing $187,000 in overcharges over three years, I had to read it twice. The dispute letters were ready to send the same day. We've recovered over $176,000 so far and our carriers now know we're watching."