November 2021 - Audintel

Ten ways to reduce shipping costs and meet customer expectations

Whether your business is big or small, you need to find ways to cut down shipping costs. Or they will eat into the profits of your business. In addition, meeting customer expectations is vital for business.

For this reason, shippers need to find strategies to reduce shipping costs. Here are 10 easy steps to reduce shipping costs and keep customers satisfied.

Ten steps to reduce shipping costs

1. Better contract negotiations with carriers

Shipping companies need to negotiate better when signing a contract with parcel carriers. Based on high shipping volumes, shipping carriers lower the shipping rate. In addition, small businesses benefit by shipping a large number of packages with shipping carriers. They can persuade carriers to offer lower rates by bargaining with them. Shippers have the option to choose hybrid services of carriers that reduce their shipping costs. Audintel helps its clients in contract negotiations with multiple parcel carriers, thus, lowering shipping costs.

2. Utilize zone skipping technique

Several packages destined for a single location are on hold in one place. It is the zone skipping technique. Shipping carriers hold individual parcels, and then all the packages are sent together to the same destination. It saves costs per package shipping. For instance, clients want to send 100 packages from Zone 2 to Zone 8 at once rather than 50 packages at a time. In addition, shippers can avoid delays at transits and hubs. Audintel provides details of zone skipping to its clients and saves money.

3. Cut down the package weight

Heavyweight packages cost more to ship. And so it helps to trim down the weight of the packages. For instance, cardboard boxes add to a package’s weight. However, the use of small, lightweight containers helps in reducing the overall weight. In addition, it helps to save money on DIM weight pricing. Audintel helps its clients in the weight analysis of its packages and saves money.

4. Reduce package size

It is necessary for the shipping companies to know the size of the packages before it is shipped. The packages that are the right size do not attract additional expenses. Alternatively, businesses pay additional fees if a parcel size exceeds the size regulations set by the parcel carrier. Shippers have to pay a Large Package surcharge if the dimensions of the package are wrong. Audintel gives information to its clients about shipping oversized items.

5. Negotiate for discounts with vendors

Negotiations with vendors that deal with raw materials are essential. Shippers get good discounts from these vendors. Further, purchasing packaging materials in bulk quantities from suppliers results in cost savings for businesses. Affordable, reusable shipping labels and packaging materials also help to save shipping costs. Audintel assists in the negotiations of discounts with the client’s vendors.

6. Minimize packaging

Efficient use of packing materials helps in reducing shipping costs. The use of poly mailers, bubble wrap, polybags as packaging materials reduces the weight of packages. Optimizing the packaging for each product minimizes the shipping costs. Alternatively, shippers can use the packaging provided by shipping carriers to save money. Audintel has a team that can help clients in shipping products with less shipping costs.

7. Use shipping insurance

Shippers incur costs when dealing with lost or damaged packages. Thus, long-distance shipments need insurance. In addition, it is best to use insurance for high-value shipments. Businesses can explore cost-saving insurance options offered by third-party insurance providers. Audintel offers to advise its clients regarding shipping insurance for products.

8. Optimal location of fulfillment center

Shipping packages close to where customers reside saves shipping costs for businesses. Additionally, it reduces delivery time, thus keeping the customers satisfied. Shippers need to understand their shipping destinations to lower the transit times. Hence, the optimal location of a fulfillment center is necessary to reduce outbound and inbound shipping costs. Audintel advises clients of the use of fulfillment centers depending on their shipping needs.

9. Choose Prepaid shipping

Shippers who consistently ship packages of the same weight and size can choose prepaid shipping. Businesses get better discounts from parcel carriers with prepaid shipping. It allows shippers to buy shipping labels upfront for their packages and use them when they ship out. Audintel advises shippers about prepaid shipping as per their needs.

10. Consider all the shipping fees

Parcel carriers have more than 75 special charges. Shippers need to be careful about the surcharges added to their billing accounts. Surcharges like Saturday delivery charges, special handling fees, etc., that do not apply to shippers should not be a part of the billing account. Audintel helps clients keep track of all the shipping fees charged by parcel carriers, thus saving money.

The bottom line

Careful monitoring of shipping costs can determine the success of businesses. Companies can save escalating shipping costs by using Audintel’s unique software solutions. The shipping needs of shippers are carefully taken into consideration by our managerial services. We offer to help negotiate carrier rates to reduce shipping costs. Discover further about reducing shipping costs by contacting us at [email protected]. To know more about our services, visit the Audintel website or call us at +1 (619) 354 8539.

How to track shipping expenditure with shipping reports?

Are surcharges hurting your bottom line? Do you wonder which areas of your shipment cost more? Shipping reports give greater visibility to your shipping data.

You can get an idea about your total spending with the help of shipping reports. It will help you get a grip on any wayward shipping expenses. Here, we will focus on essential reports that track shipping expenditure.

Importance of Shipping reports

Shipping dashboards give a glimpse into the shipping profile of shippers. Similarly, shipping reports track the shipping expenses of companies. Businesses have a real-time overview of packages and charges from these reports. In addition, shippers monitor parcel deliveries made by multiple carriers and the charges incurred during the shipment. Thus, companies effectively manage freight and parcel costs with these reports.

Four essential shipping reports

Parcel carriers and audit companies offer different kinds of reports. These reports consist of complex information that is not easy to understand for companies. Shippers need easy-to-use information that points to the areas that are increasing shipping costs. We, at Audintel, believe four essential shipping reports track the shipping expenses of companies. These four key reports comprise:

Analysis details report

This report analyzes the details of each parcel. A shipped package is assigned a unique tracking number. With the help of this tracking number, our customers can see all the charges associated with their packages. These charges include fuel surcharges, freight charges, accessorial charges, and more. Further, it gives the discounts applied on the parcels. In addition, the report provides details of the scheduled date of delivery, actual delivery date, zone, and dimensions of the package.

Charge Summary by Service report

This report gives an account of the charges associated with the carrier services. It provides an overview of the number of packages shipped and invoice amount by a particular service. Further, it gives all the accessorial charges in third-party shipments. For instance, for a 2^nd Day Air A.M. Commercial service shipment, charges in a week can be fuel surcharge, freight charges, additional handling charges, etc. This report gives a breakup of the charges by services.

Invoice Summary by Account Numbers Report

This report explores the total spend for each account number. It provides all the charges for each account number. The net amount, total discount, and the number of packages for each service and account number are a part of the report. It summarizes the breakdown of charges by account number. Shippers can see all the expenses according to the account number in this report.

Weight distribution by Service and Zone Report

This report details the weight of packages by zone and service. It evaluates the net amount of each parcel by weight and zones. For example, if shipping a package through UPS standard service, the weight is between 50 and 150 lbs in zone 2, the total spend is 21 USD. The report shows the data and status of shipments to our clients.

In this way, we track shipping expenditure with these shipping reports.

Additional Shipping reports that lower shipping costs

Other than these essential reports, Audintel has other shipping reports that track shipping costs. Our earlier blog mentioned some of these reports. The reports were Annual Summary Report(summary of all the charges per package for each service annually); Net Spend Summary Report(highlights a business’ total spends and refund for each service “at a glance” every week); Service Level Summary Report(provides all the shipping charges by service level); and service Summary Report(gives an overview of all the services the client uses per zone).

In sum, shipping reports give shippers an account of the expenses made during shipment. As well as the amount the carrier charges shippers for each shipment.

Save money by using Audintel’s shipping reports

The next-generation analytics and automation platform of Audintel provides cost-saving solutions to our customers. We help our clients receive refunds if carriers charge them inappropriately. Audintel has the most comprehensive Billing Error Identification Platform in the industry. These reports as discussed above help our clients. Clients have greater visibility of their data and benefit immensely from the various shipping reports provided by us. Audintel offers unique solutions to our clients regarding shipping parcels.

Conclusion

Businesses need real-time information to manage their expenses. Partnering with parcel audit teams helps shippers curb their shipping costs. Shipping reports are the right tools for shippers to monitor their shipments. With the help of these reports, it is easy to identify invalid charges. To learn more about the various shipping reports that cater to your needs, contact us at [email protected] know more about us and our services, visit the Audintel website or call us at +1 (619) 354 8539.

How do small parcel audit services benefit businesses?

Shipping companies lose money when they are unaware of their shipping data. Shipping couriers take undue advantage of this situation. In the past few years, parcel audit companies, are a boon for businesses.

They monitor the mistakes made by couriers. In this blog, we will discuss the affordable services of parcel audit companies. And their impact on shipping businesses.

Parcel audit services save money

Small parcel auditing identifies the errors made by shipping carriers. Companies save money as audits track surcharges, rates, and discounts offered by carriers. So, for instance, the recent introduction by FedEx of a 6% late payment fee. Companies can avoid this fee by paying their invoices on time. Or by reporting the error in adding this fee. Parcel audit firms like Audintel update their clients about new fees, surcharges, refunds, etc.

Benefits of parcel auditing services

Parcel auditing services reduce the transportation expenses of its customers. Shipping companies receive information on the total spend of each package shipment. Parcel audit firms like Audintel use state-of-the-art software to give information to shippers. Parcel audit services run diagnostics on a customer’s small parcel shipments. There is a check of each shipment for its service performance. In addition, audit experts advise shippers on any inaccuracies in carrier services.

What are the service areas that are a part of an audit?

Shipping carriers make mistakes that need to be kept in check. Different services of the parcel carriers are a part of the audit checklist. The main checkpoints that are a part of audit services include:

Late Delivery

It is the delivery of a small parcel shipment beyond its scheduled delivery time. As a consequence, shipping carriers have to give refunds to businesses. Parcel carriers do not provide automatic refunds. Companies have to request a refund. Parcel auditing services identify the mistake of parcel carriers and request a refund on behalf of companies.

Address Corrections

Parcel carriers charge for address corrections that are not needed for example, shipping carriers declare a change in the apartment number as address correction, even though the location is the same. Parcel audit services identify the invalid address correction charges. The carriers get notifications to rectify their mistakes.

Duplicate Invoices

Billing a package more than twice is one of the problematic areas of shipment. It becomes easy to audit every invoice with parcel audit services. Audit services identify duplicate invoices at a glance. As a result, shipping companies save money with parcel audits.

Voids

Shippers create shipping labels for shipments. However, shippers cannot edit the shipping labels. They have to void the existing shipping labels to create a new shipping label. Shipping carriers such as UPS charge companies for unused shipping labels. Parcel audit services track the unused shipping labels, void the shipments, and receive refunds from the shipping carriers.

Saturday Pickup and Delivery Audits

Parcel carriers charge more for Saturday Pickup and Delivery of packages. If the shipping carriers do not deliver the package on Saturday, they have to refund the amount. Similarly, the absence of services for Saturday PickUp leads to refunds from carriers. Parcel auditing tracks the refunds for deficiencies in carriers’ services.

Dimensional Weight

Shipping carriers incorrectly weigh packages and charge for high dimensional weight. Parcel auditing protects shippers from wrong dimensional weight charges. Parcel audit services ensure that businesses have accurate data to save money.

Incorrect Rate/ Discount

Shippers are given invoices with inaccurate rates. These rates are not the same rates during carrier contract negotiations. Parcel auditing identifies the wrong rates and asks for revised shipping invoices with the actual rates. In addition, shipping companies receive discounts for shipping packages from parcel carriers. However, shipping carriers do not apply discounts to these packages resulting in more money spent by the shippers. Audit services rectify the discount errors and request refunds for shippers.

Residential Address audit

For instance, when companies send parcels from one location to another commercial address- the parcel carriers may consider it as residential. Subsequently, the charges for residential areas vary. Audit services have the data to prove that the delivery was for a commercial location. In this way, audits hold the parcel carriers responsible for billing inaccuracies.

The Audintel Advantage

Audintel has robust, intuitive auditing software that helps shippers save money. We provide interactive, easy-to-use dashboards and shipping reports to our customers. Audintel‘s clients get better data visibility with our dashboards. We give our clients updates about their shipments and service errors by carriers. Audintel gives accurate information about late deliveries to receive refunds from parcel carriers. We also provide affordable services that are on par with our competitors’ services. Businesses can lower UPS, FedEx shipping expenses by partnering with Audintel.

Wrapping it up

Profitable businesses need to have information at their fingertips. More so in the case of small parcel shipments. Partnering with Audintel, a parcel audit company, is beneficial for businesses. We provide shippers access to their data at no extra cost. Our team of experts guides businesses in receiving refunds from couriers. Shippers can trust us with their data, and we deliver on our promises. Get affordable parcel audit services at [email protected]. To know more about us and our services, visit the Audintel website or call us at +1 (619) 354 8539.

Efficient contract negotiations with shipping carriers

Carrier contracts are sometimes confusing with legal jargon. And negotiating with carriers regarding services, fees is hard for companies. Shippers wonder if they are getting the best from their carrier contract negotiations.

Businesses need different carrier networks and strategies to get the best carrier contracts. In this article, we will discuss carrier contract management and the steps in the contract process.

Negotiation with small parcel contracts

Negotiating small parcel contracts is a complex process. Shippers need to know that they can use multiple carriers for the shipment of parcels. It is good to understand which shipping carrier is offering the best rate and discounts. Also, companies must send out a request for proposal (RFP) to get good deals from shipping carriers. In addition, shippers should renegotiate whenever possible. Further, shipping more volumes gives better rates and discounts. Audintel’s expert negotiators help you get the most out of these negotiations.

What are the steps in the carrier contract process?

Every year shipping rates change. So, shippers must look at their shipping contracts. It is necessary to ascertain the need for re-negotiations of shipping contracts or the initiation of new contracts. Companies have to review shipping carrier contracts stepwise. However, in a fast and changing supply chain environment, these steps are vital in the contract process.

Know your shipping profile

Shippers should have their data handy when negotiating with shipping carriers. Because shipping carriers already have access to the companies’ data before negotiations. Companies should have information about shipping volumes, service mode, zone, parcel weight, dimensions, accessorial charges, and more. Audintel helps companies access real-time data and visibility of their profile for better negotiations. Audintel tries to minimize transportation costs as much as possible.

Capitalize on differences between carriers

Shippers should consider using multiple carriers to get the best rates from a shipping carrier. By leveraging the differences between carriers, shippers get good discounts. For example, small parcel delivery through regional couriers does not focus on surcharges. Companies get benefits like better rates, delivery time, and more. Shippers can walk away from the negotiating table with a better deal. Audintel helps businesses in fostering competitive shipping deals with shipping carriers.

Examine the carrier contract

Shippers must review the carrier contracts regularly, whether it is a new contract or renewal of an old contract. Understanding the fine print of the carrier contracts is necessary. Companies need to know about any change in the shipping contract; for instance, an increase in the package characteristics such as oversize fee. Audintel will identify and examine the fine print of carrier contracts. Our automated systems determine what is best for our clients.

Understand the fees

Companies have to know the fees and surcharges in the shipping contracts. These fees can make or break the contracts. Sometimes, hidden charges in a contract can increase a company’s budget. Many companies are unaware of the addition of value-added services in the carrier contract. Audintel helps its clients understand the fees and saves money. Transportation charges and surcharges are part of the fees.

Transportation charges involve the cost of delivering a package from the shipping carrier to the end consumer.
Surcharges are many and varied depending on the type of shipping carriers. Negotiations can bring good discounts for shippers.

Some shipping surcharges include:

Fuel surcharges

The calculation of fuel surcharges is crucial for determining shipping costs. Shipping carriers calculate fuel surcharges for different services. Negotiations with shipping carriers can lower the shipping costs.

Residential Delivery Surcharge

Shipping carriers levy surcharges for deliveries to residential areas. Different carriers levy fees based on the shipping options. Negotiations that involve different services of carriers can reduce or eliminate the costs.

Oversize package Surcharge

This surcharge is for packages that exceed the weight or size parameters of shipping carriers. Shippers can ask for discounts depending on the size or weight of the parcels. The surcharges can be a part of the carrier contract negotiations.

Saturday Surcharge

The surcharge is applicable for deliveries made on Saturday. Shippers can opt out of Saturday Surcharges when negotiating with shipping carriers.

Address correction surcharges

The surcharge is applied when a shipper’s carrier has to correct the incorrect or incomplete address of parcels. Shippers can avoid the application of this surcharge during negotiations.

Delivery area surcharge

This surcharge is for shipments that are outside the standard delivery area. Shippers can opt out of this surcharge during negotiations.

Audintel can choose the surcharges that apply to its clients’ shipping needs during negotiations. We, at Audintel, calculate the accessorial charges individually in our systems.

Other areas in carrier contracts negotiations

Shippers need to be wary of accepting a refund waiver from any shipping carriers. Companies should review the terms and conditions of the shipping contracts. It is better to be patient while negotiating with the shipping carriers to get the best deal. Negotiations and re-negotiations will bring a positive outcome for both shippers and carriers.

Expert negotiators at Audintel make sure that businesses get good shipping contracts that bring in profits.

The bottom line

The overall shipping environment is changing. As a consequence, shipping contract negotiations are evolving for the better. Businesses are looking for a healthy relationship with shipping carriers. Towards this end, shipping contract negotiations are a bridge in this relationship. For any trouble in shipping contract negotiations, contact us at [email protected]. You can also learn about our services by visiting the Audintel website or call us at +1 (619) 354 8539.