Same-day shipping has become the norm for most e-commerce orders. Further, according to reports, e-commerce sales are growing exponentially every year. Emphasis on digitalization and cashless payments are on the rise. There are chances of shipping and invoicing mistakes by shippers and shipping carriers. Identifying these mistakes is essential for conducting profitable businesses. A small parcel audit helps shippers identify and rectify these mistakes.
In this article, we will explore the concept of small-parcel shipping. In addition, we will discuss small parcel auditing. We will also discuss why small parcel audits are necessary for logistic businesses globally.
Small parcel shipping
Small parcels are packages that weigh less than seventy pounds. Goods get packed in envelopes, poly mailers, or boxes for cost-effective shipping. Customers receive their small parcels through shipping carriers. Shipping small parcels requires careful planning and good logistics. The choice of shipping carriers can impact the shippers’ bottom line.
Small parcel delivery is vital for businesses to retain their reputation. Shippers face the customers’ ire if a small parcel gets delayed, damaged, or misplaced. Customer satisfaction is paramount for business to grow. Thus, tracking small parcel deliveries and saving time is necessary for shippers. A small parcel audit can help any business save money and time.
What is a small parcel audit?
A small parcel audit involves reviewing shipping bills and invoices. It helps identify overcharges and service failures by shipping carriers. Many shipping carriers like FedEx, UPS, and DHL promise refunds for errors or service failures. A small parcel audit reviews each shipment for errors and service failures. In addition, it conveys the results to the shippers for appropriate action.
What are service failures?
Small parcel delivery services are possible through small parcel carriers like FedEx, UPS, Ontrac, DHL, CanadaPost, Purolator, etc. Their failure to ship small parcels as committed is a service failure. There are several service failures from shipping carriers.
Some of the service failures by shipping carriers include:
- Late deliveries- Delivery to the customer beyond the committed time and date.
- Voids- Packages are billed but not shipped.
- Duplicate charges- Invoice billing done twice.
- Avoidable address corrections- Charges for trivial address corrections.
- Incorrect dimensional weight charges- carriers have taken the wrong measurements of the parcel.
- Account validation – failure to validate shipments considered for payment for an existing customer account number.
- Proof-of-Delivery –incorrect identification of POD or an invalid POD.
- Zone validation – fail to use correct postal codes to validate carrier zone assignment.
- Erroneous rates- the shipping carrier has given the incorrect discount.
These service failures need rectification immediately so that shippers do not lose money. Logistic businesses can claim refunds for service failures from small parcel carriers. Further, it can reduce shipping costs.
Small parcel auditing
Earlier, there was manual parcel auditing. Employees had to identify all billing errors physically. They had to review several invoices. The review of excessive paperwork was tedious. Shippers had to hire specialist auditors for this labor-intensive work. It took time to gather information and was not cost-effective. Many resources had to spend time and money during auditing. Shippers could save money and resources by adopting small parcel auditing software.
Software-assisted small parcel auditing
US parcel shipping volumes are likely to reach 225 billion by 2028, according to Pitney Bowes Parcel Shipping Index. There’s a need to optimize shipping operations with shipping volumes increase. Shipping companies have started adopting software technology, which is maximizing their profits. Shippers require in-depth visibility of parcel spend with the help of data. Further, shippers can review their invoices digitally. By analyzing the data readily available, enhancement of shipping methods is possible.
Small parcel auditing is possible with specialized software. It gives complete visibility of the shipping operations. Small parcel management with real-time tracking of shipments is beneficial for shippers. Further, refunds for late deliveries from shipping carriers aid businesses in saving money and time. In addition, surcharges like residential delivery surcharges, address correction surcharges, remote area fees, etc., are monitored by the software. Businesses can avoid extra fees with data-backed small parcel audit software.
Small parcel audits benefit a logistic business
Small parcel audits are essential for logistic business operations. These audits help in saving shipping costs for shipping companies. Businesses can monitor the complexity of managing fees, agreements, and money-back guarantees. Small parcel audit processes reduce overall shipping costs for companies. Shipping costs can decrease to about 20% by claiming eligible refunds from shipping carriers.
Small parcel audits allow businesses to save money through refunds from small parcel carriers. Small parcel audits help in the timely identification of late deliveries and automatic refunds. Moreover, shippers can profit by renegotiating their carrier contracts with the shipping carriers. Shippers can negotiate for an advantageous deal with valuable insights from small parcel audits.
Additional benefits of using small parcel audit services
Shippers can save immensely by reviewing data from small parcel audits. It helps shippers to understand any inefficiencies in their systems. These audits identify additional surcharges to companies. For instance, a small parcel audit can identify a parcel sent to the wrong location and recover money. Based on shipment complexity, in-house auditing is expensive for businesses. And so, when logistic companies want to save time and money, they outsource to companies providing small parcel audit services.
One such company is Audintel, which can analyze data to identify billing errors and overcharges. We can strategize solutions to remedy the mistakes. We provide small parcel audit services with state-of-the-art AI-powered dashboards and business intelligence tools. Moreover, we give easy-to-understand shipping reports for businesses to save thousands of dollars.
How do small parcel audit services function?
Companies offering small parcel audit services understand the shippers’ business needs. Small parcel audit services create an online login for the shipper. Further, there is a linkage with the parcel carrier’s systems. Real-time parcel tracking till the point of delivery of the shipment is carried out. Whenever there is a service failure, the generation of an invoice occurs. Subsequently, there is an automatic invoice audit, and an automatic claim is submitted. The audit team contacts the shipping carriers with the claim. The shipping company gets a quick refund. The entire process involves a software tool working in the background.
Small parcel auditing and technology
Small parcel audit services have a dedicated database for each shipping company. There is visibility on each aspect of the shipping information. The data ranges from the parcel origin, destination, charges, etc. Small parcel audit companies use interactive, AI-powered dashboards. An automated BI platform helps to identify extra fees. They help in analyzing problematic areas and negotiate knowledgeably with shipping carriers. After a parcel is shipped, there is an audit at each level. In addition, there is evidence at each service level.
Shippers can save money by claiming UPS and FedEx refunds that otherwise go unclaimed every year. Small parcel management is possible with easy-to-use dashboards and dynamic shipping reports provided by small parcel audit services.
What are the advantages of using small parcel audit services?
The services provided by a small parcel audit company include:
- E-connectivity with the shipping carrier and parcel invoicing system
- Transparency in shipment operations
- Tracking each parcel with accuracy
- Interacting with parcel carriers to resolve any disputes
- Check for any violation of guaranteed service agreements
- Identifying any overcharges made by the parcel carriers
Small parcel audit services provide support to logistic companies. The experts providing these services are well-versed in each aspect of the shipping process. Their exhaustive auditing processes help shippers reduce costs.
Customer satisfaction is paramount for the logistics industry. Customers can change their choice of company or business based on a bad or good shipping experience. It is painful for shippers if they lose customer trust. A small parcel audit helps identify each charge and ask for a refund. It is vital for real-time confirmation of billing errors. Logistic companies can reduce shipment spend by doing a small parcel audit. Audintel provides small parcel audit solutions for seamless shipping operations.