Although the word “noise” may first bring to mind the idea of train whistles or truck horns, at AMTR we think about it differently. In a recent Harvard Business Review article, authors Daniel Kahneman, et al. described noise as “the chance variability of judgments.” Humans are often unreliable decision-makers influenced by unrecognized factors such as mood, hunger, work conditions and even temperature. Unfortunately in business, noise can be costly to the bottom line.
When decision-making situations are black and white, noise can be reduced by turning to algorithms, but gray decision-making domains such as algorithmic solutions only exacerbate the negative impact to the bottom line. In the realm of freight cost auditing, AMTR acknowledges there is a role for “un-noisy” rate engine algorithms; however, our 30+ years of experience has proven a human expert, knowledge-based approach leads to far greater audit results and freight overcharge returns.
Rate engine algorithms can only address the most basic, codifiable and repeatable freight scenarios, where human auditors are free to explore unlimited variations, situations and combinations. Given our human-centered approach, we still work diligently to decrease judgmental noise by employing Smart Auditing® processes that promote discipline, consistency and standardization across our auditors and audits. Contact us to learn more about how AMTR turns down the noise and can up the volume on your audits today!