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What can you expect in the new year from FedEx and UPS General Rate Increase?

by BlogSpend Management

FedEx and UPS issue General Rate Increases(GRI) every year. Businesses have to prepare for rising shipping costs based on their shipping profile. Keeping this in mind, we would like to study the General Rate Increases (GRI) of these two premium parcel carriers for 2022. We will also look at the increase in surcharges and other additional charges of the two shipping carriers.

This article will help shippers understand the price changes in 2022 and choose the parcel carrier according to their needs.

Highlights of General Rate Increase 2022

General Rate Increase (GRI) gives shippers an estimate of the rise in base shipping rates. Depending on the contract negotiations with the parcel carriers, the impact on the shipments for shippers will vary. In addition, accessorial charges also increase every year. The shipping costs vary based on factors, such as distance/zone, dimensional weights, and more. So, our team at Audintel has identified three key highlights from the GRIs of 2022. Further, this comparison is for the United States domestic shipping rates and surcharges only.

A General Rate Increase at the service level

FedEx and UPS offer competitive rates for the domestic US shipping market. However, there appears to be a marked rise in the shipping rates, as seen in the below charts.

List rates of UPS and FedEx

The charts (Fig. 1 and Fig. 2) are for list rates, mainly focusing on 1-pound packages in zone 2. There are eight zones for US domestic shipping zones based on distance. As the distance increases, so do the shipping costs. The shipping list rates are calculated based on the weight of the packages and the shipping destinations. In this chart, UPS and FedEx Ground services show a ~6.8% increase in rates from 2021. Incidentally, parcels with a dimensional weight of more than 150 pounds appear to have a low rate increase.

UPS Rates 2022

Fig. 1: UPS 1lb daily rates  for services in Zone 102(Next Day Air), Zone 242 (2nd Day Air AM), Zone 202 (2nd Day Air), Zone 2(Ground) for destination ZIP codes starting with 004-005

FedEx Rates 2022

Fig. 2: FedEx 1lb rates  for services in Zone 2

Minimum charge reductions as seen for UPS and FedEx

A discount for low-weight packages is possible with minimum charge reductions. It is known as “Minimum Net Charge” by UPS and “Minimum Package charge” by FedEx. Both parcel carriers, UPS and FedEx, offer minimum charges to their customers. Shippers having a large volume of shipments can negotiate for minimum charge reduction in their carrier agreements.

UPS Minimum charges

Fig. 3: UPS Minimum charges for packages

FedEx Minimum Charges

Fig. 4: FedEx Minimum charges for packages

Thus, negotiating for minimum charges with parcel carriers is vital for shippers. Our experts in Audintel help businesses negotiate minimum costs in their contracts. Contact us for further information on UPS and FedEx minimum charges.

Accessorial fees and surcharges

With the General Rate Increase announced each year, accessorial fees and surcharges increase annually. We see an increase in some vital surcharges, such as Additional Handling Charges, Delivery Area Surcharges (DAS), and Residential Surcharges. The impact of these surcharges affects the bottom line of shippers. In the case of UPS, an immense change in 2022 is the addition of Remote Area Surcharges for the lower 48 states. It is known as “US48 Remote Area Surcharge”. Earlier, the Remote Area Surcharge was for some zip codes in Alaska and Hawaii.

UPS Surcharges 2022

Fig. 5: UPS Surcharges

Fig. 5 of UPS surcharges indicates an increase in shipping prices zone-wise. In addition, it appears the introduction of Remote Area Surcharge for additional zip codes in the US will affect the profits of some businesses.

FedEx Surcharges 2022

Fig. 6: FedEx Surcharges

For FedEx surcharges, our observation is that the Additional Handling Surcharge for zone 2 is less than the charges of 2021. Further, the oversize charges for zone 2 are less than the amount charged in 2021. This information is vital for businesses sending oversize parcels to zone 2. It is good news for shippers sending packages for short distances.

As seen in the above charts, the surcharge increase is due to Additional Handling Charges of packages. In addition, Large Package surcharges (UPS) and Oversize packages (FedEx) indicate the rise in price due to the size of the parcels.

Worried about rising shipping charges – let Audintel help you

Our intuitive audit platform provides innovative solutions to businesses. Audintel addresses the challenges faced by shippers. Our team aids shippers in reducing the impact of the steep GRIs, announced by shipping carriers. We help businesses to

  • negotiate better deals
  • receive discounts for services, surcharges
  • choose the best-quality services of alternate, low-cost parcel carriers

Audintel supports shippers in reducing the shipping charges announced by shipping carriers with our contract negotiations services.

Closing Remarks

Choosing the ideal shipping carrier is difficult. In addition, different shipping carriers have various shipping pricing models that may confuse the shippers. Audintel’s team aids businesses to have a clear idea about the carrier agreements they are signing with the parcel carriers. Our aim is that shippers save money and garner profits simultaneously. So, learn about the impact of GRIs affecting your parcel delivery from Audintel. Reach out to our team at [email protected] or by visiting the Audintel website or call us at +1 (619) 354 8539.

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Is outsourcing freight audit a good business choice?

by BlogFreight Audit

Understanding when to outsource your freight operations is key to being competitive in the face of globalization and to achieving cost-effective and data-driven freight operations. Freight bills are complicated, and as the firm expands, so does the complexity of freight audit and payment. Making it more difficult to effectively manage and evaluate transportation costs.

Outsourcing freight auditing does result in cost savings and improved visibility with a more modern system capable of handling thousands of invoices.

What does it mean to outsource a freight audit?

Freight auditing is the practice of inputting, analyzing and validating freight bills for accuracy. The freight bill is an invoice given by a carrier to the shipper. It outlines the complete charges for the freight shipment.

Outsourcing freight auditing entails handing over the freight audit task to a specialized third party. The audit of freight invoices and bill pay process is being outsourced to 3rd party specialized auditors; thereby reducing internal resources. A freight audit provider already has the groundwork in place, as well as modern tools to process data from all modes.

Outsourcing to an analytical-driven business partner that can input, process, and normalize data before using a unique platform to give actionable insights may assist enhance all aspects of operations.

How does outsourcing freight audit work?

A third-party freight auditor receives its clients’ freight bills directly from carriers to start the auditing process. After receiving the bills, they are loaded into the freight auditor’s system, either manually or by electronic data interchange (EDI). Then, the bills are audited for accuracy when they are entered. Auditors use correct agreements to examine bill validity, duplicate payments, base rates, discounts, and accessorial charges. If an overcharge or mismatch is detected, the auditor either files a claim or attempts to correct the problem. Uncertainties in pre-audited invoices are addressed before payment. After completing the audit, the charges are processed and verified, and the bills are paid.

The benefits of outsourcing freight auditing:

The following are some of the primary advantages:

Increasing productivity:

A manual examination of a freight invoice can be time-consuming and labor-intensive because of the variety and volume of information they contain. Then there’s the issue of appropriately allocating transportation and supply chain expenditures. Supply chain managers are frequently forced to assist accounts payable departments by performing this task themselves. This makes them devote important time away from overseeing freight operations.

Audintel, a freight audit service, has created solutions to simplify the massive work of auditing freight invoices. Outsourcing freight auditing reduces the need for internal employees to undertake this work, freeing up your back office to tackle other activities. Also, allowing your teams to focus on maintaining a lean, robust, and efficient supply chain.

Higher level of transparency:

Internal freight audit and payment have various flaws, including a lack of transparency and a bigger risk that stakeholders must deal with. Third-party providers provide full transparency into cost structures and verification methods to shippers and freight forwarders. As well as critical transportation expense data to help them make rational decisions.

Data-driven insights:

Data-Driven Insights gathered from reporting tools can help businesses make sound cost-cutting decisions. Data analytics is a constant goal for freight payment companies so they can provide greater insight from their data.

Reduction in the cost of operations:

You will undoubtedly save a significant amount of money if you outsource freight auditing services. This is because the freight along with the audit payment alternatives will be automated. Your accounts department would not have to waste time validating payments before approving invoices.

Gained visibility:

You won’t have to worry about your visibility or compliance if you outsource the responsibilities to the best freight audit and payment services. This means you’ll never have to rely on an inaccurate freight expense again. The business you select should have extensive experience operating freight auditing systems.

Conclusion:

Outsourcing freight audit delivers excellent outcomes in terms of cost savings, resource efficiency, and improved business or customer focus. With its powerful analytics and automation platform, Audintel, as an outsourcing audit business, delivers actionable and agile management of every part of your supply chain. If you would like to learn more about our freight auditing methods and systems, please contact us at [email protected] or call us at +1 (619) 354 8539 or visit the Audintel website.

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How Audit companies deal with Freight logistical and operational challenges?

by BlogSpend Management

Nowadays most companies are leveraging worldwide logistics to spread their footprints globally. Companies will incur huge costs in transportation hence Transportation Cost Control is required to be competitive in the market. To optimize cost and overcome the freight logistical and operational challenges, industries are consulting freight audits and payment companies.

Freight audit and payment companies will help identify the challenges industries are facing with respect to logistics and operations.

Common freight logistical and operational challenges

Dealing with Bulk Data:

The number of shipments is increasing day by day and the companies use multiple carriers for shipment which leads to the bulk of invoices. The amount of paperwork backup required to validate the charges increases tremendously which is impacting the amount of time required for freight reconciliation and also on-time payments. Hence affecting supplier/partner relationships and hugely impacting business.

Improper Freight Billing:

If the carrier contact information or weight information on your bill of lading is entered incorrectly, carrier obtains inaccurate shipment information and that can lead to a number of consequences such as delayed delivery and overcharging on the freight bill. Audintel uses advanced business intelligence solutions to achieve 100% correct billing.

Higher Shipping Rates:

Shipping cost is one of the major contributors to overall Inbound and outbound logistics costs. Shipping expense is something every company has to worry about. We need to be careful in choosing the right carrier and right shipping mode when transporting goods to larger distances as this will incur higher costs. Audintel analyzes the market data to determine how well a carrier is performing and compares the cost of transport against different carriers. Audintel also helps in making tactical and strategic decisions by choosing the right carriers with the lowest cost possible.

Data Transparency:

Companies have access to lots of data at the same time it became difficult to get easily accessible information. Visibility and understanding of data are very important for companies to make the right decisions.

Dashboards are an important component of Auditing companies. Audintel provides new dashboards highlighting a variety of data including shipment overview, annual summary details, audit activities, net spend, etc…

How do Freight Audit Companies help in freight logistical and operational challenges?

Freight audit companies examine the freight bills to verify information on invoices and ensure that the invoice has not already been processed using EDI (Electronic Data Interchange). By automating Freight reconciliation, we can eliminate paperwork and errors caused through manual work. If errors are found on the invoice Freight audit company reaches out to the carrier and ensures corrected invoices are sent whenever errors are found in invoices.

According to third-party logistics research, lowering transportation costs is at the top of the list of logistics sector priorities. Increased optimization using advanced shipping analytic tools makes it easier for the clients to choose the cost-effective carrier and analyze data to determine how well a carrier is performing.

Using BI, Visualization, and Data analytics to spot trends, Audintel provides powerful and interactive Dashboards for clients. Dashboards are also featuring drill-down functionally. At the highest corporate level, the dashboards are designed for the client to view the graphs. It also provides graphic breakdowns of your current rate sheets, so you can quickly see what your rates are with each carrier.

Streamlining invoice processes, reducing costs through invoice audits, and providing actionable insights are just a few of the benefits. All of the steps that were previously completed manually can now be completed using the services of a freight provider and their automation.

Conclusion :

Audintel provides shipping logistics companies full visibility of their supply chains and manages their resources efficiently. Features like Freight Audit, optimization, selection of carriers and data transparency helps customers in choosing the best suppliers. To learn more services provided by Audintel, contact us at [email protected]. You can also learn about our services by visiting Audintel Website or call us at +1 (619) 354 8539.

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Main takeaways from the UPS General Rate Increase of 2022

by BlogSpend Management

UPS General Rate Increase for 2022 will affect businesses. So, know the new surcharges announced by UPS.  Further, find out how to minimize shipping costs.

It’s that time of the year again! The time when different parcel carriers announce an increase in their shipping rates. Incidentally, UPS has announced its General Rate Increase (GRI) some time back. In addition, UPS has also made changes in surcharges and fees. This article will explore UPS GRI, new changes, and its impact on businesses. Also, we will discuss the ways to minimize the overall shipping costs due to UPS GRI.

What’s new in UPS GRI 2022?

Shipping carriers like UPS announce their annual General Rate Increase. According to the UPS notification, UPS GRI will be effective from December 26, 2021. There is an increase in shipping rates for UPS ground, air, and international services to around 5.9%. Parameters like the weight of the packages, zones, and zip codes are part of the rate increase. Some of the UPS services like:

  • UPS SurePost services
  • UPS 3 Day Select services
  • UPS Next Day Air Services

seems to show a marked increase in shipping rates.

In addition to the rate increase, there have been changes in surcharges too.

Changes in accessorial fees and surcharges

UPS GRI does not include the fees and surcharges which have seen an increase. The surcharges include:

  • Peak Surcharge

It is also known as a demand surcharge. When the demand for shipments is more at the peak time of the year, UPS charges more.  But, for 2022, a peak surcharge has been introduced for international packages shipped to and from the United States. The shipped packages will be charged based on the weight and at different service levels. In addition, this surcharge also applies to UPS domestic shipments such as  UPS® Air Residential, UPS® Ground Residential, and UPS SurePost® Packages.

  • Value-added Services and other charges

UPS has increased the charges for additional handling of packages based on weight and dimensions. In addition, large package surcharges are also rising in 2022. On the other hand, minimum charges for packages between 1 and 5 lbs are also set to rise. Further, shipments to remote areas will see an upward rise under US48 Remote Area Surcharge (RAS). UPS has added a delivery area surcharge due to the population rise in some zip codes. The RAS includes additional zip codes in the delivery area. For example, package delivery to Hawaii will cost $1.35 more in 2022.

  • Fuel surcharge

Like all other parcel carriers, UPS has altered the fuel surcharges. The U.S. Ground and Air Services will see the change due to fuel surcharges. Fuel surcharges change without initial notice to consumers. The fuel surcharges apply to transportation charges and other charges such as Delivery charges, pickup charges, Saturday delivery and pickup, and more. For further information on fuel rates, click here.

Impact of GRI on businesses

GRI is declared by parcel carriers annually. In addition, the surcharges also increase exponentially every year. In such circumstances, shippers need to either bear the expenses or pass on the extra costs to the customers. It leads to shopping cart abandonment by many customers. The impact of GRI on businesses like furniture, home goods, etc., is massive. The shippers need to find a way around it. Alternatively, shippers need to renegotiate the carrier agreements with the parcel carriers. Parcel audit companies like Audintel advise businesses about the impact of GRI and surcharges. We, at Audintel, read the fine print of the contracts so that shippers get a fair deal.

How does Audintel minimize the overall shipping costs due to GRI?

Each business has its shipping attributes and profiles. Audintel studies the different aspects of each business shipment and its shipping needs. We guide shippers in negotiating with shipping carriers regarding discounts and the impact of GRI. So, any change in GRI and surcharges reduce the effect on our customers. Our team of experts guides businesses in selecting alternative parcel carriers and service levels to minimize the GRI impact. For instance, if our customer finds UPS Select Services expensive, we recommend alternate cheaper services provided by competitive parcel carriers.

To Summarize

UPS GRI 2022 has brought many changes in the shipping rates and surcharges. These changes make a tremendous impact on the shipping costs of businesses. E-commerce retailers get alert about the general rate increase from the corresponding carriers. They can avoid the impact on their businesses by making quick decisions. Shippers partner with parcel audit companies like Audintel to balance their shipping costs. Our team negotiates on behalf of businesses to get favorable carrier agreements. Shippers save money and time with the advice given by the experts of Audintel. For further information about GRI and other issues, contact us at [email protected]. You can also visit our Audintel website or call us at +1 (619) 354 8539.

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FedEx Rate Increase 2022 – Impact on your business

by BlogSpend Management

With the year 2021 drawing to a close, businesses are preparing their budget for 2022. Did you know that the yearly shipping rates offered by carriers have seen an exponential increase? FedEx announced the rate increase for 2022, and it is not the same as before. Here, we will discuss the FedEx rate increase for 2022 and its impact on business. Further, we will explore how small parcel audit services help shippers save money despite the rate increase.

General Rate Increase by FedEx

Initially, we need to discuss the concept of a General Rate Increase (GRI). A GRI denotes an increase in shipping rates applied by the shipping carriers. According to US regulations, a shipper has to receive notification of a new GRI at least 30 days in advance. Since 2013, the GRI yearly increase was about 4.9%. However, for 2022, parcel carriers like FedEx and UPS have increased the GRI by an average of 5.9%. The hike is due to the high demand for e-commerce shipments. The parcel carriers are spending more to transport small parcels and freight.

Ways to handle GRI with audit intelligence

Shippers prepare their annual budget early with the announcement of the new GRI. Partnering with small parcel audit services like Audintel helps shippers understand their shipping profiles. The different aspects of a business’ shipping profile include

  • the type of services
  • weight of packages
  • dimensions of packages
  • pick-up and delivery locations
  • surcharges.

Audintel helps its customers identify the specific aspects of the shipping profile that need consideration. For instance, customer X ships products through FedEx Ground service. Our role is helping customer X receive discounts on fees and surcharges, specifically for FedEx Ground service.

Contrasting features between GRI and Surcharges

GRI involves an increase in the shipping rates for a long time. For instance, GRI was about 4.9% since 2013. Further, surcharges are the additional top-up costs for a specific service, zone and have a short timeline. The change in global demand and supply of goods affects GRI. Surcharges vary with each shipment and may change randomly. For example, an additional handling surcharge is not for every shipment.  The surcharges may differ for each shipping carrier.

FedEx Rate Increase of 2022 and its impact on businesses

FedEx announced FedEx Rate Increase for FedEx Express, FedEx Ground, and FedEx Home Delivery services from January 3, 2022.  The increase is for domestic, export, and import Services. This rate increase of 5.9% does not include surcharges and other fees of the shipping carriers. The rise in shipping rates, new surcharges, and fees impact businesses. As a consequence, shippers have to adjust their annual budget or pass on the extra expenses to the customers. Alternatively, shippers can balance out their shipping costs to some extent by using the software solutions offered by audit services.

FedEx surcharges of 2022

FedEx surcharge increase is different for each shipper, based on the corresponding agreement.  The fuel surcharge is in effect from November 1, 2021. It is due to fluctuating fuel prices and the rates calculated by the oil companies. Similarly, there are surcharges such as Additional Handling Surcharge, Delivery and Returns surcharge, and many more. The surcharge increase is by zone as well as by weight. For instance, the Oversize surcharge by FedEx US express/ Ground in zone 2 has increased by 4.76%. For further information about FedEx’s surcharges and fees, click here.

How can Audintel help shippers?

Audintel analyzes the data and the kind of packages shipped by the clients. Our team studies the shipping patterns of shippers. Audintel recommends cost-reducing opportunities to shippers. We help our clients receive discounts on surcharges and fees from the parcel carriers. In addition, we negotiate or renegotiate the shipping contracts on behalf of our clients. Audintel also suggests alternatives to FedEx with cheaper regional carriers. In this way, we optimize shipping costs for our clients.

Conclusion

When expenses rise, we often wonder whether we can afford them. Similarly, the FedEx rate increase has made shippers think about their shipping costs. Audintel explains complex carrier agreements to our clients so that they get the best rates. We help businesses negotiate their shipping contracts effectively and save money. Our experts help shippers optimize their shipping spend. We have the best audit services to manage shipping costs. For further information about FedEx General Rate Increase (GRI), contact us at [email protected]. Learn about us by visiting the Audintel website or call us at +1 (619) 354 8539.

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Ten ways to reduce shipping costs and meet customer expectations

by BlogTSM Services

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.

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How to track shipping expenditure with shipping reports?

by BlogSpend Intelligence

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 2nd 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.

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How do small parcel audit services benefit businesses?

by BlogSpend Management

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.

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Efficient contract negotiations with shipping carriers

by BlogCost Optimization

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.

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Under what conditions can companies receive a UPS refund?

by BlogTSM Services

Did you know UPS awards refunds for 50+ service failures? So, the next time UPS loses a parcel or delivers it late-companies can request a refund. UPS promises a refund for service failure. But, the refund is not for all services and destinations.

Shippers have to be aware of the terms and conditions of the UPS refund policy. This article explores the conditions in which companies can receive UPS refunds.

Service failures and errors for which UPS offers refunds

UPS faces many service failures and billing errors. UPS’ service failures are lost packages, invalid service exceptions, late parcels, damaged packages, etc. Shipping carriers make several billing errors. Some of the billing errors include inaccurate discounts, void shipments, incorrect weights, etc. In addition, there are surcharges such as invalid residential surcharges, charges for re-delivery, duplicate charges, etc. UPS offers Guaranteed Service Refunds for these mistakes.

Conditions under which UPS refunds are offered

Ideally, shippers expect refunds from shipping carriers for shipping mistakes. Only after fulfilling its terms and conditions, UPS gives Guaranteed Service Refund (GSR) to shippers. UPS considers a request for a refund from the shippers subject to these conditions. Some of these conditions include:

Appropriate packing and labeling of shipments

UPS does not give refunds for incorrectly labeled packages. Shipments should be labeled appropriately for on-time delivery. Packing has to conform to UPS Automated Shipping System, showing the Consignee’s correct name, delivery address, and ZIP Code.

Shipment recorded in UPS Shipping System

The UPS Shipping System records every shipment and package. UPS guarantees “on-time” delivery of shipments. The delivery schedule is on UPS’ website. The parcel delivery has to be on schedule, or the shippers are eligible for a UPS refund.

Accurate documentation accompanying the shipment

When shipping internationally, shippers need to include documents with the packages. The relevant documents are for customs clearance at the country of origin or in transit. The absence of accurate documentation will lead to delay in shipments.

Saturday delivery routing label to be included on packages, wherever applicable

Shippers have to use the Saturday Delivery label on the package when shipping on a Friday. It is applicable for Next Day Air service by UPS. Else, the package delivery occurs on the next business day, Monday. UPS is not liable for late delivery in such a case. And so, shippers will not get a refund for the same.

Time limit to request for UPS refund

The time limit for claiming a UPS refund is within fifteen days from the date of scheduled delivery. Shippers can claim refunds through UPS’s Interactive Voice Response system or UPS’s online Billing Center. Details like the recipient’s name, address, package weight, tracking number, and shipment date are a part of the request.

No Additional Handling Charges for shipments

Additional Handling charges are for packages that require special handling. Also, additional charges are for parcels that exceed the weight or size limit. Such shipments will not receive a guaranteed service refund from UPS.

In addition, UPS does not offer refunds for events beyond their control (force majeure) or suspension of services.

Audintel -Shipper’s guide in receiving UPS refunds

Understanding the terms and conditions of UPS’ Service Guarantee is tedious. Further, figuring out whether shippers can request a refund is tiresome. As a result, many companies lose money when they face such hassles. In such a situation, parcel audit services such as Audintel guide shipping businesses. The automated audit services of Audintel ensure that shippers receive UPS refunds on time and in their accounts. We audit shippers’ shipping invoices and claim refunds for shippers. Our team works effortlessly in the background and saves money for businesses.

Conclusion

Tracking shipping invoices is vital for shippers. Billing errors will cost shippers dearly in the long run. Companies can save money by claiming UPS refunds for service failures. An automated audit service provides much-needed help to shippers. Audintel is helping many businesses save money. For any service failure by UPS, we help our clients receive refunds.

Do you want more information on UPS refunds?

Reach us at [email protected]. To know more about us and our services, visit the Audintel website or call us at +1 (619) 354 8539.