Freight Leakage Detection Work Flow

Concept

Build

Fully autonomous freight invoice auditing agent that scans incoming invoices from email, categorizes them by shipment type, compares charges against contracted rates, detects billing errors (duplicate charges, misapplied fees, NMFC code errors, weight discrepancies), and generates variance reports for procurement analysts — recovering costs that manual processes miss.

Dow identified millions of dollars in freight billing savings using AI-assisted invoice analysis with Microsoft Copilot.

Agentic behaviors

  • Automatically identifies incoming freight invoices from email (PDF, Word formats)
  • Extracts structured data from unstructured invoice documents
  • Matches each invoice to the governing contract and applies category-specific validation rules
  • Flags errors and generates variance reports with quantified error amounts
  • Updates the invoicing database for analyst review and enables natural language querying of invoice patterns

Features & capabilities

Invoice Ingestion & ExtractionMonitors Exchange inbox for incoming freight invoices; extracts structured fields (carrier, shipment ID, charges, origin/destination, dates) using document intelligence
Contract MatchingMatches each invoice to the corresponding freight contract by carrier, lane, shipment type, and date range
Shipment CategorizationClassifies invoices by mode (land, air, barge) and geography to apply the correct validation rule set
Error Detection EngineChecks for: duplicate charges, late delivery codes, accessorial fee anomalies, weight discrepancies, inaccurate rates, misapplied fees, NMFC code errors, and incorrect fuel surcharge calculations
Variance Report GeneratorProduces a report for each shipment showing contracted rate vs. actual charge, with flagged discrepancy amounts and priority for review
Invoice Database WriterEnters extracted invoice data, matched contract data, and error flags into structured database for analytics
Natural Language Invoice AnalystEnables procurement analysts to query the invoice database in natural language ("Show me all duplicate accessorial charges from Carrier X in Q2")
Carrier Performance SummaryAggregates error rates by carrier to support contract renegotiation and carrier selection decisions

Who benefits

  • Procurement Analysts (primary)
  • Logistics Planners
  • Finance / Accounts Payable
  • Procurement Directors

KPIs impacted

Freight cost recovery (leakage elimination)Invoice accuracyMaterials/logistics costsAccounts payable cycle time

Required connectors

Configured per-organization in the Control Tower once this workflow is enabled for your team.

Exchange Online / OutlookAzure Logic AppsTMS (Transportation Management System)Invoice DatabaseERP

Configurations & Options

Set up in the Control Tower once this workflow is enabled — shown here so you know what to expect.

Configurations

  • Carrier dispute escalation threshold ($)

Options

  • Require director approval for carrier disputesWhen on, disputes above the threshold require director-level approval before the carrier is contacted. When off, procurement analysts can send disputes of any size directly.

Governance requirements

  • Agent flags errors for human review — it does not automatically reject or dispute invoices
  • Dispute communications to carriers must be drafted by the agent but sent by a human procurement analyst
  • Validation rule sets versioned and maintained by logistics/procurement team — agent applies rules, does not create them autonomously
  • All flagged errors logged with the specific rule triggered, raw invoice data, and contract reference (audit trail for dispute resolution)
  • Carrier dispute escalation above a defined dollar threshold requires director-level approval