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Reduce shipping costs of small parcel shipments seamlessly

by BlogTSM Services

The postage charges of the U.S. Postal Service are rising, according to the latest news. USPS Ground Advantage service is one of the simplest, affordable ways of shipping small parcels. But, its prices have increased. Similarly, there is an increase in the prices of USPS Priority Mail® and USPS Priority Mail Express® services. Further, the annual shipping rates of major small parcel carriers like FedEx and UPS have seen an upward trajectory.

It has led to a rise in the cost of shipping services for businesses. Many shippers are searching for faster and cheaper ways of shipping small parcels. Small parcel delivery companies offer discounts and affordable shipping rates. However, shippers need to know where to look to get the best service.

Regional carriers compete with the bigger shipping couriers with offers of different service options, fees, and more. Nowadays, the demand for free shipping and fast delivery is growing. E-commerce owners have to fulfill customers’ expectations and lower shipping costs. So, companies must find ways to reduce shipping costs.

This blog will cover the five ways to lower shipment costs and make profits for companies.

Factors affecting shipping costs

Small parcel shippers face challenges of packaging and labor shortages. To increase business profits, reducing shipping costs is vital. In addition, it is necessary to meet customer expectations when delivering small parcels. There are several factors affecting shipping costs.

The main factors affecting shipping costs include

  • Delivery speed and service

Faster small parcel delivery satisfies customers’ needs. Last-mile delivery of packages can influence shipping costs. In addition, the service levels provided by small parcel carriers like ground or air transport affect the shipping costs.

  • Weight and dimension of packages

Heavier packages cost more. Package dimensions also can affect shipping costs. Bulkier packages occupy more space in a delivery truck. Thus, small parcel delivery companies charge more for the packages.

  • Shipping distance

It will be costly to ship a small parcel far away. It will be cheaper to ship it to a nearby location. Small parcel shipping costs increase depending on the shipping zones within the contiguous US states. Small parcel international shipping involves taxes and duties affecting shipping costs.

  • Surcharges

Accessorials can influence the shipping expenses. There are many surcharges, like additional handling charges, fuel surcharges, residential delivery fees, delivery area surcharges (DAS), and more. The surcharges can add to the shipping costs if the shippers are not vigilant during shipping.

These factors will affect the calculation of shipping charges. Companies can reduce expenses by partnering with 3PLs and warehouse management. Further, they can invest in efficient packaging methods and streamline the shipping process.

Five ways to reduce shipping costs

According to the latest statistics, 47% of online shoppers abandon their carts due to extremely high costs. The high shipping costs could be due to taxes or shipping rates. Longer delivery time is also one of the reasons for cart abandonment. Shippers can reduce shipping costs in several ways. Audintel advises our customers about the ways to save money. Here are five easy ways to lower shipping costs.

  • Using advanced tracking software tools

Automated Transportation Management Software (TMS) allows shipping companies to reduce expenses. The tracking software helps shippers track their shipments. It provides an accurate shipment delivery time. Companies can cut shipping costs by effective planning of transportation budgets.

Audintel’s TMS effectively manages shipping spend by managing small parcel carrier payments and performance. It gives shippers an edge over shipping carriers when requesting refunds for late deliveries. Audintel monitors the package deliveries and files a refund for our customers. Shippers get insights into real-time tracking of small parcels.

  • Management of shipping rates

Small parcel carriers offer different shipping rates and delivery services to customers. FedEx and UPS increase their shipping rates annually. Shippers can choose the service levels that suit their business needs. Further, they can check the services of alternate shipping carriers. So, shippers choose from the shipping rates of many prime and regional small parcel carriers.

Audintel gives comparison data about the parcel carriers’ rates to shippers. It provides valuable data insights to shippers. Audintel helps companies optimize their shipping operations with small parcel data management. Managing shipping rates of small parcel carriers allows shippers to save money.

  • Negotiating with small parcel carriers for the best shipping prices

A well-negotiated deal is the core of each shipment. Thus, negotiations with small parcel carriers are vital for companies. Shippers can reduce shipping costs by negotiating a flat fee from small parcel carriers. Shipping carriers like UPS and FedEx offer better fees for small parcels based on the size, weight, and destination. Shippers can expect discounts for some services from small parcel carriers.

Experts from Audintel have the data about shipping rates and discounts of shipping carriers. They inform shippers about the discounts and shipping rates of the small parcel carriers so that they get the best deal. Businesses can negotiate shipping rate discounts before the annual General Rate Increase (GRI). In this way, shippers benefit from discounts offered by small parcel carriers.

  • Inform shippers of the importance of shipping audits.

Customers hate unexpected charges in their invoices during the checkout process. Shipping companies can educate customers on the complexities of the shipping process. Shippers can reduce shipping costs by creating pick-up points for customers’ orders. Businesses can negotiate with fulfillment centers for shipping packages quickly.

Moreover, shippers can decrease the size of the packages to save money. For example, use a poly mailer for small parcels instead of a box. In addition, companies can reduce the weight and dimensions of small parcels. For instance, use lightweight and compact packaging material.

Shipping audits are essential for companies to lower shipping costs. Our team at  Audintel provides an in-depth audit of the shipping process. It identifies mistakes made by small parcel carriers. We point out any improper invoicing or unnecessary charges levied by shipping carriers.

  • Streamlining the shipping process

The entire shipping process requires streamlining from beginning to end. Companies can increase profit margins by optimizing the supply chain model. Identification of supply chain bottlenecks in time prevents shipping disruptions. In addition, shippers need to pay attention to customers’ needs. Shipping companies need to adopt advanced shipping processes with efficient planning.

Audintel advises shippers about shipping strategies to increase profit margins. We provide business models to shippers that lower shipping costs. Presenting real-time delivery updates to customers helps increase customer satisfaction. Further, Audintel provides customized shipping reports for shippers to streamline their shipping processes.

How Audintel services reduce shipping costs

Audintel’s audit team has TSM services to help shippers manage their shipping profiles. Our TSM services include

  • real-time tracking of shipments
  • identifying invalid, inaccurate billing charges
  • assessing carrier contracts
  • saving with accurate pricing calculations
  • analyzing Transportation Spend
  • claims and refund processing, etc.

Audintel’s state-of-the-art cloud-based software provides access to the best shipping rates. It allows shippers to compare shipping rates of different small parcel delivery companies. We offer real-time shipping data to shipping companies. Our AI-based technology saves money and time for our clients. We aid shippers in negotiating good contracts. As a result, shippers receive the best deals and discounts. In addition, we provide shipping strategies to customers that help reduce shipping costs.

The bottom line

Small parcel shipping is complex, whether you ship locally or globally. Small parcel delivery companies add to the complexity by increasing their shipping prices. Businesses are looking for ways to ship small parcels economically and effortlessly. Small parcel audit companies help companies lower shipping costs with minimum hassles. Audintel gives shippers peace of mind with its sophisticated business intelligence solutions for Transportation Spend Management. The data analytics provided by Audintel helps shippers save money. Need help in reducing shipping costs- contact us at +1 (619) 354 8539. Further, visit our Audintel website to learn more about our services.

Shipping reports

Shipping reports: Optimize shipping performances with data

by BlogSpend Intelligence

This holiday season, economic uncertainty and rising inflation will hit many industries. Also, these industries will face customers who want more goods and services at a lesser price. Further, shipping companies deal with high shipping costs and holiday surcharges. In addition, companies will have to attract customers with great shipping experiences.

Transportation spend solutions like shipping reports make shipping simple and easy. Earlier, we had discussed shipping reports help in reducing shipping costs. This blog explores shipping reports, managing shipping costs, and shipping metrics.

Shipping reports: its essentiality

Companies require comprehensive solutions to reduce unnecessary surcharges. Automated parcel auditing help companies in saving money to a great extent. There is less reliance on manual, time-consuming manual auditing processes. Shipping reports provide companies with complete visibility of parcel shipping history, tracking data, shipping rates, and more variables. In addition, shipping reports use intelligent automation to identify billing mistakes and overcharges and efficiently track shipments. Shipping reports by Audintel give detailed, in-depth information on carrier performance, service levels, accessorial charges, etc.

Shipping cost management with shipping reports

It is becoming increasingly difficult for shippers to understand shipping rates and complex surcharges. Shipping reports provide details of the shipping processes to maximize operational efficiency. Companies that incorporate real-time analytics can provide quality service to their customers. Shippers have greater visibility in parcel spend management with the help of real-time shipping data and analytics. Further, leveraging the right technology helps in better shipping cost management.

Shipping metrics in shipping reports

Not just shipping cost management, shipping reports play a vital role in tracking the on-time delivery of packages. Shipping metrics like on-time delivery performance by shipping carriers offer clarity to shippers. It helps them recover refunds from shipping carriers like UPS and FedEx and reduce shipping costs. Further, parcel auditing involves using business intelligence solutions to reduce shipping costs. Some of the shipping metrics that are a part of shipping reports include

  • Accessorial charge summary-summarizes accessorial charges by invoice number
  • Address correction details-detailed information about the addresses that are corrected
  • Weight adjustment details-original weight and billed weight of package adjustments are listed.
  • DIM weight verification-details the dimensional weight variations of packages
  • Lost or damaged packages details-lists the lost or damaged packages
  • Invoice summary-summarizes invoices within a time frame or date range
  • Insurance detail-shows the insurance packages, values, and charges for each package
  • Delivery status-list the delivery status of a package and confirm whether residential or commercial delivery, zone, weight, etc.

The above metrics give a glance at what to expect in shipping reports. The shipping data in shipping reports covers the various aspects of shipping a package. Companies can minimize shipping costs with quick resolution of carrier errors and additional surcharges.

Key Performance Indicators (KPIs) to track shipping performance

There are various key performance indicators (KPIs) that help in monitoring each business area. Companies benefit by spotting financial problems early, making timely adjustments, and undertaking quick decisions with KPIs. The KPIs relate to Order management metrics such as the number of shipments, shipping time, and accurate order pick-up. In addition, Transportation management metrics help improve shipping operations with freight payment accuracy, on-time delivery, and transportation costs. Using transportation management metrics, companies can automate shipping processes. They can improve inventory management and identify unnecessary charges leading to extra costs. In addition, KPI dashboards help in tracking shipping performance.

A way to lower shipping costs

Shipping reports help to analyze historical data and share results in real time. They give clarity on service errors by parcel carriers and service refunds. And so shippers can negotiate discounts with shipping carriers and lower their shipping costs. In addition, shippers use real-time data to track each shipment and reduce shipping costs. Companies can increase the delivery speed of their packages with the correct data. A parcel auditing solution provider, Audintel helps companies follow the best shipping practices and save shipping expenses.

Customized shipping reports by Audintel

Parcel auditing services of Audintel audit every overcharge and invoice error. Our services provide transparency to transportation spending management. The shipping reports provided by Audintel give in-depth information on the shipping details of shipments. Our clients can save hundreds or thousands of dollars on their parcel spend.Audintel helps companies understand their transportation spend management more efficiently. Our shipping reports track the last-mile delivery status of a package, thus giving clients peace of mind. We provide real-time dashboards and customized shipping reports that help our clients reduce shipping costs. With lower shipping costs, shippers receive a great on-time delivery experience to customers.

Conclusion

Shipping during the holiday season is crucial for all companies. Customer satisfaction and optimum operational efficiency are essential during this period. Companies optimize their shipping operations with lower shipping costs. Audintel helps companies reduce shipping costs with their data analytics tools. Our customized shipping reports allow companies to gauge their shipping expenses and save money. So, for an increase in operational efficiency and quick turnaround time, contact our services at +1 (619) 354 8539 or visit our Audintel website.

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Know your shipping spend from four critical shipping reports

by BlogSpend Intelligence

As a shipping business, you are always on the lookout for profitability. When shipping parcels from place A to B, you need to know the cost of the shipment. Keeping a tab on the packages shipped becomes difficult for businesses. For this reason, shipping reports are vital for shipping businesses.

The shipping reports give an overview of the shipping costs. And help the shipping business save money. This article will explore the concepts of shipping spend. And the four critical shipping reports that address shippers’ spend, and save money.

What is shipping spend?

The cost incurred during shipping packages is known as shipping spend. Shipping spend includes transportation fees, accessorial fees, warehousing, labor, insurance, etc. Managing shipping costs along with labor and product costs is a balancing act for businesses. Automation and digitalization are helping companies to understand their spend management. Shipping spends management gives visibility to shipping costs. In addition, it provides insights into cost-saving opportunities and strategies for businesses to adopt.

How is shipping spend analysis improving data visibility?

Shipping businesses can manage and optimize shipping operations with the correct data.  Shipping spends analysis starts with collecting data and analyzing it in detail. Data from shipping carriers, customs, shipment count, fuel purchasing system, and more are not enough. In addition, shipping businesses have to analyze real-time data with advanced technology like IoT. Advance technology improves data visibility so that shippers can make informed decisions. The data helps in reducing shipping costs for shippers.

Shipping reports aiding spend management

Proficient software tools aid in analyzing shipping spend. An automated software helps to identify the areas of financial opportunities. Based on a shippers’ key performance indicators (KPIs), the software generates shipping reports. The customized shipping reports shed light on specific shipping details and help in making data-informed decisions. Towards this end, we have detailed the four critical shipping reports that are vital for shipping businesses to understand shipping spend.

1. Annual Summary Report

A summary of all the charges per package for each service is in this report. It calculates the average cost per package for each service.  The report is essentially an analysis report from a particular date range. It includes the shipping spend, the number of packages, cost per package, and the weight of the parcels for each service. For example, for a 1-day service, customers can compare the charges levied in the current year to that of last year.

2. Net Spend Summary Report

An easy-to-use report that highlights a business’ total spends and refund for each service “at a glance”. This report gives the net spend and refunds for each service weekly. It is an essential report for customers. It provides an insight to customers about the total amount spent on each package per week. Customers can manage expenses and save money by using this report.

3. Service Level Summary Report

It provides all the shipping charges by service level. The report covers expenses on the total packages, gross amount, discounts, and discount percentages for each service.  The amount charged without applying any discount is known as the gross amount. In addition, the report explains the average cost, weight, and zone for each service. The average weight is the total package as against the total weight of the package. In addition, average zone means shipping to each shipping zone on average.

4. Service Summary Report

This report gives an overview of all the services the client uses. It provides details like net charges, carrier-published charges, accessorial charges, surcharges, the weight of the package, and the number of packages. Carrier-published charges are the charges to which the shipping carrier has agreed with the shipper. The report analyzes the amount the carrier charges per zone.  Furthermore, it indicates the percentage with which the shipping carrier is increasing their deliveries.

Benefits of shipping reports

Shipping spends analysis is characterized by shipping reports. The information in the shipping reports helps shippers in optimizing their shipping strategy. Further, it improves the visibility of the shipping data. And help shippers root out invalid charges claimed by shipping carriers. Audintel gives customers an overview of their shipping costs with these reports. Audintel provides in-depth shipping spend information. Customers can make decisions with the data received from shipping reports.

Closing remarks: Shipping businesses worry that their expenses do not cost them dearly. With this in mind, shippers try to gain more information about their shipping spend.  However, the process takes a lot of time and money. But, when you partner with a parcel audit company like Audintel, life becomes easy. Audintel provides customized shipping reports that provide spend management solutions to their customers. As a result, customers have critical data insights in their hands to negotiate with shipping carriers concerning their shipping spend. To learn more about shipping reports, contact us at [email protected]. You can also learn about us by visiting our Audintel website or call us at +1 (619) 354 8539.

optimixze

How do analytics & BI tools help optimize shipping costs?

by BlogSpend Intelligence

Optimization of parcel shipping costs is the goal of shippers. Data Analytics is helping shippers achieve this goal. Shipping contract negotiations help in getting the best rates from carriers. Similarly, new shipping software solutions give shippers insights to reduce parcel costs. In this blog, we will discuss the steps required to optimize shipping costs using data analytics.

Importance of analytics in the supply chain industry

There is an increasing demand from customers to deliver their orders on time. In addition, they expect free benefits from shippers. Shippers have to meet these demands and contain expenses. Data analytics is helping shipping companies meet the demand of customers. They can control the information overload by using Analytics. Further, Business Intelligence (BI) tools analyze shipping trends of companies. These tools are helping to improve shipping efficiency and reduce parcel costs.

Five steps to optimize shipping parcel costs

The steps that shippers take to improve shipping costs for parcels are:

1. Monitor performance of shipping carriers and their services

Real-time shipping data helps shippers to understand the performance of shipping carriers. For instance, with the data, they can identify if the parcel’s delivery is on time. Similarly, shipping carriers provide services like Ground, Express, Priority Overnight, and more. With data analytics, shippers can choose the service that will meet their delivery requirements. Audintel suggests alternate low-cost services for small parcel shipping.

2. Understand distribution zone usage

Today, customers are concerned with fast shipping time. So, shippers need to understand the different distribution zones for shipment. They have to consider the distance between the shippers’ location and the customer’s location. Further the packages are shipped, the more it will cost the shippers. Data that understands distribution zone usage is essential. It will determine if the shippers need to outsource the parcel to a central fulfillment center. By making small changes in the carriers operating in distribution zones, shippers can save additional costs. Audintel offers unique software solutions to shippers with discounts depending on zones.

3. Weight of packages

Data analytics gives insights on the way to handle shipments. They help in addressing issues related to parcel weights. Shipping carriers charge for bulk shipments. Combining multiple parcels and of differing weights together in a single package is a cost-effective strategy. DIM divisor influences the pricing of parcel weights. Alternatively, the dimensions of the parcel are more. Then shippers end up paying more for freight shipping. Shippers can reduce dimensional weight by making smaller packages. The dimensional weight analytics provided by Audintel aids clients in saving parcel costs.

4. Monitor special handling and associated fees

Analysis of weekly parcel data gives insights into the additional charges affecting shippers. Evaluation of accessorial fees is necessary to know the charges levied by carriers. In addition, it is vital to monitor the special handling fees. To avoid Residential delivery fees, shippers can use U.S. Postal Services (USPS) as last-mile delivery, thus saving money. Furthermore, Analytics gives shippers the freedom to ask for discounts from carriers. Audintel provides software solutions to help in mitigating the pain points of parcel shipping.

5. Outsource to a third party for contract negotiations

By aligning with a third party, shippers can reduce parcel freight rates substantially. Incidentally, it amounts to up to 40% savings for shippers. Third-party experts can negotiate with carriers like UPS and FedEx for discounts. They have helped in reducing surcharges. In addition, the negotiations done by outsourced experts give a competitive edge to shippers.

Audintel’s role in optimizing shipping costs

Audintel has an evidence-based learning software system. It is a one-of-a-kind software system that evaluates a client’s shipping profile. The experts at Audintel support clients with contract proposals and negotiations. Based on the historical shipment data, Audintel gives suggestions to clients for reducing parcel costs. Audintel helps its client realize its goal of cost-effective negotiations. Shipping data analytics helps its clients adopt long-term and cost-saving services.

Concluding remarks

Big data analytics is changing the supply chain industry. BI tools help in gathering relevant shipment information, useful for shippers. Analysis of shipping data helps shippers strategize ways to reduce shipping costs.

Audintel uses analytics to cater to your shipping needs. For further details, write to us at [email protected] or contact us at +1 (619) 354 8539. Please visit our Audintel website.