Nolan & Cunnings FAQ

Freight Audit & Payment. Smarter. Safer. Since 1920.

Choosing a freight audit and payment partner isn’t just about cutting costs—it’s about trust, control, and visibility across your entire supply chain. Below you’ll find detailed answers to the questions we hear most from shippers, finance leaders, and logistics teams evaluating Nolan & Cunnings.

If you don’t see your question here, contact us and we’ll be happy to help.

About Nolan & Cunnings

 

Who is Nolan & Cunnings?

Established in 1920 by William Nolan and Oliver T. Cunnings, Nolan & Cunnings (N&C) is a longtime leader in the freight audit and payment industry. N&C began as a local Detroit-based clearinghouse for perishable goods claims. In 1953, the company introduced one of the first pre-audit and freight bill payment plans in the United States. Today, N&C provides a full suite of logistics and supply chain services to more than 2,000 client locations across North America, South America, Europe, and Asia.

What is the Nolan & Cunnings mission and vision as a logistics partner?

The mission of Nolan & Cunnings is to deliver comprehensive, accurate, and cost-effective audits of all freight invoices for shippers of every size. Shipment and cost data are collected and leveraged to help reduce overall supply chain spend. By fostering close collaboration between customers and the internal team, N&C continuously improves services—driving measurable cost savings, improved profitability, and value that can be shared by all stakeholders.

How long has Nolan & Cunnings been in business?

Nolan & Cunnings has been in business for 105 years as of 2025.

How long has Nolan & Cunnings provided freight audit and payment services?

Freight audit and payment services were launched in 1953 and have been refined and expanded ever since.

What is Nolan & Cunnings’ company culture like?

Nolan & Cunnings operates like a family business, treating employees as family members and encouraging open, ongoing dialogue about how to improve operations, products, and services. Teams meet regularly to review system performance and identify ways to enhance functionality, speed, efficiency, and automation—so work is completed more accurately and reliably for customers.

Is Nolan & Cunnings privately or publicly owned?

Nolan & Cunnings is a privately held, Michigan-based C corporation with only two shareholders.

Services & Capabilities​

Which transportation modes are supported for audit and payment?

Invoices are audited and paid across virtually all modes of transportation, including parcel, LTL, FTL, ocean, air, rail, bulk, flatbed, intermodal, and final mile.

How many carriers are currently paid on behalf of clients?

The N&C database includes more than 4,000 carriers, and payments are processed to them on behalf of customers.

Are non-U.S. carriers and foreign currencies supported?

Yes. Carriers outside the United States can be paid, and payments can be processed in 32 different currencies.

Which EDI formats and data types are supported?

All standard and many custom formats are supported, including traditional ANSI X12 EDI, XML, carrier proprietary formats, spreadsheets, flat files, delimited records, and more.

Can Nolan & Cunnings integrate with existing ERP and financial systems?

Yes. N&C can interface and exchange files with any ERP platform on the market. Clients are not forced into a fixed format or protocol. Instead, N&C works with IT and finance teams to define the best interface—file formats, transmission method, and frequency—based on existing systems and capabilities.

Implementation, Support & Training

What is the typical implementation timeline?

A standard implementation usually takes about 30–45 days of development time. Projects with extensive integrations or highly specialized requirements may take longer, but timelines are scoped and communicated clearly upfront.

Which client resources are typically involved in implementation, and for how long?

Client impact is designed to be minimal. Typically, the following roles are involved:

  • Freight/logistics experts to align on carrier relationships and pricing
  • Accounting personnel for G/L coding and reporting requirements
  • IT resources for any system integrations

Total time required from client teams is usually less than 10 hours.

What is the experience level of the implementation team?

Implementations are led by an operations supervisor with over 20 years of experience at N&C, including deep knowledge of systems, processes, and requirements. The assigned account team and, as needed, IT resources also participate to ensure a smooth go‑live.

How are client accounts supported on a day‑to‑day basis?

Each client is assigned a dedicated account manager who serves as the primary point of contact for both client teams and carriers. The account manager is supported by:

  • An exception resolution team that handles invoices that fail business rules
  • An auditor who reviews invoices flagged by the rate engine as incorrect

This structure ensures that issues are identified and resolved quickly and accurately.

What communication channels are used for ongoing questions or requests?

Most daily communication occurs via email and phone between designated client staff and the N&C account team. Communication style and escalation paths are adapted to client preferences.

What is the escalation process when a problem arises?

When escalation is required, direct access is provided to:

  • The assigned account manager
  • The operations supervisor to whom the account manager reports
  • The general manager, who oversees the operations teams

Clear contact information and response expectations are provided so issues are resolved quickly.

What kind of training is provided on N&C tools and the client portal?

Tailored training is provided on the website, portal, and tools for all necessary team members. Training is role‑specific so each user understands the features and workflows most relevant to their responsibilities and can use the tools effectively from day one.

Handling of Client Funds

How are client funds protected and accounted for?

Client funds are managed with a high level of control and security:

  • Freight funds are deposited into a separate bank account used exclusively for paying freight bills
  • Funds are never commingled with N&C operating accounts
  • A crime bond is maintained to protect clients from theft or misappropriation of funds
  • Some clients choose to add an exclusive loss payee bond for additional protection

Importantly, no N&C client has ever lost any funding provided for the payment of freight invoices.

Are client freight funds kept separate from N&C operating funds?

Yes. Separate bank accounts are maintained for freight payments and for N&C operating funds. These funds are never commingled.
They are never commingled.

What is the policy on “float” when managing client funds?

N&C does not schedule or profit from float. The only float that occurs is the standard banking time between posting client funds to the N&C account and the clearing of payments:

  • ACH payments typically clear in 2–3 days
  • Wire transfers are immediate
  • Checks can take longer, depending on destination

Client funds are never held longer than necessary to apply and generate payments to carriers.

Financial Oversight, Audits & Compliance

Are N&C financial statements reviewed by an external firm?

Yes. Financial statements are compiled by an external Certified Public Accountant (CPA) based in Farmington Hills, Michigan. The CPA is certified by the American Institute of CPAs (AICPA). Reviews are supplemented by the internal N&C financial team.

Is SOC 2 or similar audit compliance maintained?

Yes. N&C engages an external audit firm and maintains annual SOC 2 audit compliance, the modern successor framework to SAS 70 Type II.

Which regulatory standards and internal controls guide operations?

Controls and policies are aligned with standards established by the AICPA Standards Committee and are validated through the SOC 2 audit. This framework ensures robust, well‑documented controls around security, availability, processing integrity, confidentiality, and privacy.

Security, Fraud Prevention & Access Control

How is protection against employee fraud, theft, or misuse of funds achieved?

Multiple layers of internal control are in place to prevent fraud and misappropriation:

  • Segregation of duties: No single user can create a user, create a carrier account, generate an invoice, and initiate a payment end‑to‑end
  • Checks and balances: Customer finance processes include several validation and approval steps
  • Positive pay: Positive pay with payee name verification is used through the bank to prevent unauthorized alterations or fraudulent checks

No client has ever experienced a loss of funds under N&C’s management.

How is client information and data protected?

Client data is protected through network, system, and access controls, including:

  • Two Cisco ASA firewalls at the hosting provider
  • Internal users authenticated via domain controllers and multi‑factor authentication
  • A point‑to‑point VPN between headquarters and the hosting provider, eliminating exposure to public internet traffic during transit

These measures help ensure that only authorized users and systems can access sensitive data.

How is system access controlled for different users?

Access is configured at a granular level. Every menu, menu item, and sub‑menu in the applications is controlled at the user level. Each user is granted only the access required to perform assigned responsibilities—applied consistently to both internal N&C users and external client users.

Are audit trails of system activity maintained?

Yes. Every transaction processed in the databases generates an entry in the user log. These logs are visible through the website and internal production applications, providing clear traceability for activity and changes.

Data Protection, Backups & Disaster Recovery

How frequently is data backed up, and where are backups stored?

SQL databases are backed up frequently to protect data and support rapid recovery:

  • Incremental backups every 10 minutes
  • Full backups twice weekly
  • Weekly backups to tape and offsite storage

Incremental and full backups are retained at the data center and can typically be restored within about one hour. Offsite tape backups are stored in a secure facility and rotated monthly.

How often is the disaster recovery plan tested?

Disaster recovery capabilities are tested regularly:

  • Database failure and restore testing is conducted quarterly
  • System corruption and restore testing is conducted twice annually

These tests help ensure recovery processes remain reliable and current.

Is there an alternate “hot site” for disaster recovery?

Yes. In the event of a catastrophic failure at the primary data center, systems automatically roll over and redirect to another hosting provider site within North America to maintain continuity of operations.

What is the data retention policy?

Data is retained online for seven years, making it readily available for reporting, audits, and analysis. After seven years, data is archived for future retrieval if needed. Archives are not permanently deleted or destroyed, ensuring historical data remains accessible.

Performance & Invoice Exceptions

What is the invoice rejection rate, and are additional fees charged for handling exceptions?

Less than 2% of all invoices processed by N&C are rejected due to missing information or required approvals. When an invoice is resolved via the portal and the carrier does not submit a duplicate, there are no additional charges for reprocessing exception invoices.

Audit, Rating & Invoice Processing

What is the typical turnaround time for paper invoices?

When no additional approvals or documentation are required, paper invoices are generally processed from receipt to readiness for inclusion on a funds request in less than one calendar week.

How is the processing and payment of duplicate invoices prevented?

A robust duplicate‑checking algorithm compares thirteen different data points—including client ID, carrier, invoice/pro number, BOL, origin, destination, and shipment date—to flag and block duplicate invoices before they are processed or paid.

How many data elements are captured from paper invoices?

Data capture is configured to align with client requirements. In most cases:

  • 65–80 data elements are captured for a domestic shipment
  • Up to 110 data elements are captured for an international load

This level of detail supports thorough auditing, reporting, and analysis.

Can multiple transportation modes be supported for the same carrier?

Yes. A client/carrier table maintains mode‑specific requirements and data preferences. Designated data elements (for example, indicators for air or ocean) are used to determine transportation mode so shipments are correctly classified and processed even when a single carrier handles multiple modes.

How is data entry accuracy ensured and measured?

An OCR process is used to extract data from carrier invoices and supporting documents, followed by 100% human verification. A verifier checks each field for accuracy and corrects any misreads before a transaction is finalized.

Isolated issues caused by poor‑quality images are corrected and advanced; systemic issues trigger template updates by a dedicated team so future invoices are captured accurately, continuously improving data quality.

How are fuel surcharges captured and managed, including multiple fuel schedules?

The N&C rate engine supports complex fuel surcharge (FSC) structures. Multiple FSC tables and cost matrices can be loaded, managed, and audited. For each shipment, the system dynamically selects the correct fuel table based on carrier, mode, lane, date, and shipping location to ensure accurate FSC application.

Can multiple tax types (GST, PST, HST, etc.) be handled by country?

Yes. Each charge on a freight invoice—freight, FSC, accessorials, and taxes—is captured as a separate line item in an accessorial table. This structure allows detailed tax reporting by country and region. For Canadian shipments, GST, PST, and HST are audited to confirm accurate application based on the provinces traversed.

Is invoice aging supported at the carrier level?

Yes. Invoice aging can be configured to match contract payment terms. Bills can be aged by:

  • Ship date
  • Pro date
  • Date received by N&C

Payment terms can be set globally or at the individual‑carrier level, providing flexible control over aging and cash‑flow timing.

What are the capabilities of the freight rating engine?

The freight rating engine is purpose‑built for audit requirements and automatically applies:

  • Base rates and mileage tariffs
  • Carrier‑specific pricing, including FAK
  • Minimums and discounts
  • Fuel surcharges
  • Accessorial charges and other fees

This automation streamlines the audit process and ensures that invoices are rated accurately against contracted terms.

What information is audited on each invoice?

A comprehensive audit is performed on:

  • Base rate, classification, mileage, discounts, minimums, fuel, and all accessorial charges
  • Shipper and consignee information
  • Commodity details and freight terms
  • Other key shipment data fields

All information is verified against supporting documents (such as BOLs) and any available client shipping files, so invoices are validated end‑to‑end before payment.

How are invoices handled when pricing is not on file for a carrier?

Invoices without pricing on file are placed into the online exception portal. A designated client contact receives an email listing invoices requiring review. That contact can log in, review the invoice image and data, and instruct N&C on how to proceed—for example, approve, dispute, or request a “pay as presented” approach.

“Pay as presented” is available but treated as an exception rather than the standard practice.

How much lead time is required to update rates when carrier pricing changes?

Lead time depends on complexity:

  • Simple changes (such as a surcharge adjustment) can often be implemented immediately
  • More complex changes, like a new LTL matrix with state‑to‑state pricing, typically require 2–3 days to configure and test

Rate‑change timing is coordinated so updates align with carrier agreements.

Are tiered and multi‑rate pricing contracts supported?

Yes. The system is designed to handle multi‑tiered and complex pricing structures, and tiered or multi‑rate contracts have been implemented successfully across a wide range of clients.

GL Coding, Allocation & Accounting Support

How are General Ledger (G/L) codes assigned to shipments?

G/L coding can be applied to any required level of detail, including down to individual part or SKU when needed. Coding logic is configured according to each client’s rules so codes are assigned consistently and automatically across freight spend.

How are G/L coding practices reviewed and improved?

During implementation, existing G/L rules and coding logic are examined in detail. Based on this review, a collaborative process is used to identify recurring issues and design improved structures and rules. The objective is to enhance coding accuracy and optimize freight cost allocation and reporting.

How are freight charges allocated across locations, departments, or cost centers?

Invoices can be allocated according to client‑defined business rules, including:

  • Splitting charges among locations, departments, or cost centers
  • Assigning different accessorials to different G/L codes
  • Allocating costs by stop for multi‑stop shipments

Allocation logic is fully configurable to match internal financial and reporting structures.

What portion of allocations is automated?

More than 90% of invoices requiring G/L coding and allocation are processed automatically through configured business rules, reducing manual effort and improving consistency over time.

Billing, Payment Cycles & Carrier Remittance

Is there a fixed day‑of‑week closeout in the system?

No. Funds requests can be initiated or closed on any day of the week that aligns with client preferences and operational requirements, rather than adhering to a fixed system closeout day.

How frequently are carriers paid, and can payments be consolidated?

Carrier payments are processed daily. Once funds are available to N&C, payments are released within 48 business hours. Payment cadence can be configured—such as consolidating to a monthly payment cycle—based on carrier agreements and client preferences.

Which carrier payment methods are supported?

Multiple remittance methods are available:

  • ACH (Automated Clearing House), the primary method for most carriers
  • Checks, for carriers that prefer check payments
  • Card‑based “fast pay” using a MasterCard solution for select carriers
  • Wire transfers, with associated fees typically charged back to the client or deducted from the carrier’s payment
What type of remittance information is provided to carriers?

Remittance information is provided in formats aligned with the payment method:

  • Electronic payments include electronic remittance details
  • Check payments are accompanied by remittance statements listing invoices and amounts paid
  • Carriers can also access remittance details and payment history through the secure N&C website
How are billing cycles and funds requests structured?

Billing cycles and funds requests are configured around client requirements. In general:

  • Bills that have passed verification and audit and are due within the current cycle are reviewed by an N&C account manager
  • The account manager balances the bill group and generates agreed‑upon reports and files
  • Reports such as carrier summaries, location summaries, and G/L code summaries are delivered on the established schedule

Specific report types, file formats, and timing are defined and documented during implementation.

How does the funds request process operate?

Funds requests are created according to client‑specific requirements. Typically:

  • A carrier summary, location summary, G/L code summary, and all supporting documentation are prepared
  • These are delivered on the requested day and in the agreed formats
  • Upload‑ready files for ERP systems can be provided to streamline import and reduce manual data entry

Once funds have been received, payments are issued to carriers in accordance with the configured payment cadence and terms.

Ready to See What You Could Save?

Nolan & Cunnings helps shippers uncover and eliminate hidden freight overcharges and inefficiencies—often saving 3–5% on audited freight spend and up to 20% with our Transportation Management System and analytics.

If you have a question that’s not covered here, reach out to our team and we’ll get you the details you need.