How to lower shipping costs

How to reduce shipping costs credibly with a rise in revenue?

by BlogSpend Management

Shipping carriers have diverted trade from the Red Sea in the past few weeks. Ocean freight is taking longer routes around Africa to avoid the threat of violence in the Middle East area. Shipping parcels and freight to different places is becoming expensive. And so, shipping costs are rising for many businesses globally.

Furthermore, the shipping rates imposed by different parcel carriers like UPS and FedEx will increase in 2024. Companies have the challenge of reducing shipping costs efficiently. In addition, it is necessary to build back some profit margins for e-commerce businesses.

Calculating and understanding shipping costs is confusing for many shippers. So, we have compiled ways to reduce shipping costs in this blog. Our earlier blogs on shipping costs are also helpful. Check our blogs on shipping costs related to shipping reports, data analytics, and more.

Initially, let’s start with the concept of Shipping costs.

Shipping costs

These are the expenses involved in sending packages from warehouses to customers. Packaging, transportation expenses, labor, carrier fees, etc., form part of the shipping costs. In addition, fuel charges, taxes, shipping services, and distance contribute to shipping costs. Moreover, businesses have to find the shipping carrier that suits their needs. The cost of shipping can lead to customers abandoning their carts.

Businesses can cut down shipping costs by adopting cost-effective strategies.  Further, shippers can improve their profit margins by following reliable ways to reduce shipping expenses.

Efficient and reliable ways to reduce shipping costs

Many factors cause a rise in shipping costs. Understanding them is essential in lowering shipping expenses. Below are a few ways to reduce shipping costs and boost profits.

  • Make packaging lighter and smaller.

Packaging is an integral factor in reducing shipping costs. Shippers can optimize packaging using efficient, lightweight packing materials like corrugated cardboard, EPS foam, PET plastic, etc. Lightweight packaging helps reduce storage costs and the weight of the shipments. In addition, recyclable materials and customized packaging can save money for businesses.

By using small boxes and mailers, shippers can reduce transportation costs. Small packages occupy less space, allowing companies to ship more packages quickly. For instance, using poly bags or mailers for shipping clothes is feasible. Sustainable and durable packaging can improve businesses’ operational efficiency. Low package weights can minimize shipping costs considerably.

  • Keep DIM Weights in check.

Dimensions of parcels can make a difference in shipping expenses. Dimensional (or DIM) weights can determine the shipping costs. DIM weights are calculated based on the space occupied by a package rather than its actual weight. For instance, an irregular box containing balloons will cost more than a compact box of books. Space-consuming packages cost more.

Shippers can keep DIM weights in check by opting for small and compact packaging materials. In addition packaging efficiently and using sustainable options helps the environment. Some companies can also partner with third-party Logistics (3PL) for managing DIM weights.

  • Utilize packaging provided by shipping carriers.

Another way of reducing shipping costs involves the use of packaging provided by shipping carriers. Companies that use their packaging might face additional charges. For instance, shippers pay more if the box size exceeds the shipping carriers’ regulations.

Parcel carriers like UPS and FedEx have their branded logo on their boxes. The advantage of using carrier packaging is shippers don’t need to calculate their DIM weights. Moreover, shipping carriers give special rates or services for using their packaging.

Shippers can look for discounted supplies to decrease shipping costs. Shipping carriers like UPS offer discounts or free supplies to small businesses. Packaging materials like bubble wraps, poly mailers, etc, can be purchased in bulk. Many companies offer discounts for buying supplies in bulk. Discounted supplies will help small business owners to boost their profits.

  • Consolidate orders wherever possible

Businesses can consolidate orders in a single shipment if many items go to the same address. Shippers save money if they don’t have to pay for multiple packages. Consolidating orders improves the customer experience and reduces the need for returns. It helps in reducing shipping costs and minimizes package waste.

  • Opt for PrePaid Shipping

Shippers can purchase numerous prepaid shipping labels from shipping carriers. Prepaid shipping labels contain the required information with a barcode. It helps businesses ship packages at no additional cost. It is ideal for packages with the same weight to be shipped out often. Businesses get discounts from shipping carriers like UPS and FedEx for using their printing services. It is a way of reducing shipping costs for shippers and boosting profits.

  • Reduce shipping distances

Shipping fees increase with further distances. Shipping carriers impose a fuel surcharge if the package has to go a longer distance. In addition, parcel carriers charge more for handling the packages. Shipping packages internationally attract custom fees. Shippers need to reduce the shipping distance of their packages to save money.

Businesses can choose warehouse locations closer to customers so that the shipping charges decrease. Further, shippers can partner with fulfillment centers in each shipping zone to reduce shipping distance. These steps will help reduce shipping costs and boost profits.

  • Negotiate with several shipping carriers.

Companies need not stick with a single shipping carrier for their shipping needs. Several shipping carriers offer different prices for various services. Higher shipping volumes attract lower shipping fees. Hybrid services by UPS and FedEx use local post offices for last-mile delivery. It reduces shipping expenses for shippers. Further, smaller regional carriers offer discounts or value-added services for some locations.

Shippers can negotiate with the shipping carriers to lower shipping rates. Shipping companies offer discounts to businesses even with low shipping volumes. Competitive shipping rates provided by shipping carriers help shippers. Building relationships with the shipping carriers helps shippers reduce fees. And so businesses can reduce shipping costs and increase their profit margin.

  • Use third-party insurance

During shipping, there are chances of untoward events affecting the cargo. Businesses need to insure their products to prevent any damage or loss. For example, valuable goods like precious stones and musical instruments require insurance. Shipping carriers offer their insurance as part of the service or as a stand-alone charge.

Shipping insurance of shipping carriers can often cause a dent in a business’s profit margins. Third-party insurance companies offer cheaper rates than these shipping carriers. So, shippers can use third-party insurance to save on shipping costs.

  • Minimum purchase amount for free shipping

Shippers should set a minimum purchase amount when offering customers free shipping. Businesses can set the rate for those orders that are profitable to them and are highly purchased by customers. Payment will be for orders which don’t meet the free shipping threshold. The concept of free shipping encourages customers to buy more and avail of free shipping. Shippers can reduce shipping costs and increase their profits by this method.

As discussed above, there are many methods to reduce shipping costs.

Here are some tips for small businesses to reduce shipping costs

  • Automate shipping processes

By implementing advanced technology, small business owners can reduce shipping costs. Software solutions can automate shipping processes, give real-time tracking data, and speed up order processing. Further, data analytics helps avoid excess inventory expenses and forecasts shipping volumes. Audintel has state-of-the-art technology to help small business owners streamline their processes.

  • Customer-friendly approach

Regular assessment of data helps shippers offer shipping incentives to customers. Providing customers with real-time tracking information reduces inquiries. Further, any shipment delay notification to customers brings in a level of transparency. Small business owners can also offer loyalty programs that reward repeat customers. It can increase profit margins for shippers.

  • Partner with 3PL

A 3PL partner can lower shipping costs for small business owners. They can negotiate lower shipping rates with shipping carriers due to their shipping volumes. Further, small business owners can separate their inventory across different warehouses across the US. It helps to reduce labor costs and shipping errors.

The bottom line

Whether you are a small or large business owner, reducing shipping costs is vital. The methods described above help businesses save money and garner profits. Audintel aids its clients in managing their shipping costs and increasing their profits. Our team of experts can optimize your shipping operations seamlessly.

If you need help understanding shipping costs, contact us at +1 (619) 354 8539. Further, you can visit our Audintel website.

Small Parcel Audit Services.

Advanced and cost-effective small parcel audit services

by BlogTSM Services

Omnichannel retailers and e-commerce are seeing booming growth. Further, businesses can expect a rise in the small parcel shipping volumes. According to some reports, the US Courier, Express, And Parcel (CEP) Market will have increased growth. Thus, there is substantial pressure on shippers to deliver better. Businesses have to give competitive, cost-effective shopping experiences to customers. The need to evaluate and audit different business aspects is necessary.  

Parcel auditing involves examining shipping invoices, analyzing carrier services, and identifying mistakes. Companies can audit their small parcel shipments by manual audits, use audit software, or outsource it. Manual audits require companies to invest resources. In addition, manual audits are prone to human errors. Parcel audit software is expensive and requires a technical understanding of using the software. Parcel audit services manage the entire audit process. They allow companies to focus on their core competencies and increase profits.

Our earlier blogs focused on the challenges of small parcel shipping and the importance of KPI dashboards and Business Intelligence in parcel auditing. Here, we discuss small parcel audit services and some essential audit points. In addition, we highlight Audintel’s small parcel audit services.

Small parcel audit services

During the peak season, shippers worry whether their parcels are reaching customers on time. If shippers send thousands of parcels daily, keeping track of each shipment is tedious and time-consuming. It is easier to outsource auditing small parcel shipments to companies specializing in this field.

An in-depth review of shipping invoices is integral to parcel audit services. Moreover, parcel auditing services validate carrier contracts. The analysis of shipping data provides valuable insights into shipping operations. With the help of advanced technology tools, small parcel audits identify shipping errors. These errors could be wrong weights of parcels, incorrect entry of addresses, etc. Several shipping mistakes can occur during small parcel shipping.

Parcel audit services have identified more than 50 audit points. Some of the noteworthy audit points include:

Late deliveries

Delays in delivery of small parcels or late deliveries affect businesses. Shippers either offer refunds or discounts to customers to retain them. Late deliveries can impact customer satisfaction and loss of business growth. Negative online reviews from the affected customers can cause more damage to businesses.

Companies can prevent late deliveries by using parcel audit services. Parcel auditors provide real-time tracking of shipments. It allows shippers to claim refunds from parcel carriers for late deliveries. Real-time delivery updates sent to customers and package locations make the customers invested in the shipping process. Further, shippers can also partner with third-party logistics providers (3PL) to prevent late deliveries.

Items manifested but not shipped.

Shipping manifests are documents detailing the goods to be shipped. Complete shipping information for multiple shipments is part of the manifest. The manifest contains a package quantity, weight, and reference number. Shipping manifest allows seamless handover between shipper and parcel carriers.

On placing orders, the generation of manifests and billing occurs. However, orders may change after the billing of the manifest. For example, a company has to ship eighty packages. A manifest is created and billed. But, if the company wants to add ten more packages to the order, there is a new manifest generation, and the shipment occurs. But, the company has to pay fees for the original manifest, which was not shipped. In addition, it has to pay for the ninety packages shipped. The double billing leads to a rise in shipping costs for the company.

Parcel audit services have software platforms that identify packages manifested but not shipped. It alerts the shippers about the mistakes in billing and saves money.

Residential surcharges

Additional fees applied by parcel carriers to packages shipped to a home or a home business are residential surcharges. These fees are in addition to a parcel carrier’s base rate. UPS and FedEx apply residential surcharges to small parcels shipped to a residential location. So, residential surcharges can increase the shipping costs for businesses. Alternatively, using USPS and hybrid services helps prevent residential surcharges.

Parcel auditors provide details on the residential surcharges to shippers. Further, auditors suggest methods to reduce residential surcharge costs. They help in identifying whether the address is eligible for a residential surcharge. Small parcel audit services help shippers by getting discounted rates from shipping carriers. Moreover, parcel auditors advise shippers to negotiate residential surcharges in the carrier contracts.

Delivery Area surcharges

One of the common surcharges applied by shipping carriers is the delivery area surcharge (DAS). It is an additional fee when a package is delivered or picked up in an area outside the parcel carriers’ shipping area. Rural areas and remote locations fall under the DAS category. Depending on the ZIP codes and addresses, parcel carriers decide the delivery area surcharge. Shipping carriers are planning to add more number of ZIP codes in 2024. And so, preventing DAS becomes essential for businesses to avoid escalating costs.

Shippers can reduce their shipping costs by using the services of carriers that don’t charge DAS. Experts in logistics can help identify such services. Small parcel auditors have the knowledge to advise businesses on preventing DAS charges. Further, shippers can opt for regional carriers for last-mile deliveries. Companies can reduce shipping costs by partnering with third-party logistics.

Address corrections

Companies lose thousands of dollars on address correction surcharges. Parcel carriers levy additional fees if there is a mismatch between the addresses. Shipment addresses are the addresses where the order has to be delivered. Businesses incur huge losses if they enter the wrong shipment address on the package. Or they do not validate their addresses before shipping.

Parcel auditing keeps a close eye on the invoices and detects address anomalies. Parcel audit services have cutting-edge technology that can automatically identify mismatched addresses. In addition, shippers can use software that eliminates the potential risk of entering incorrect shipment addresses. 

Signature requirements

Some businesses need delivery confirmation and require signatures from their customer. Most valuable goods like jewelry and electronic items need signatures for delivery confirmation. UPS and FedEx provide Signature Required delivery services to companies. These are additional fees levied by shipping carriers for the signature-required services. The recipient has to sign for the parcel before its release. Shipping costs vary depending on the type of services opted by the shippers.

Small parcel auditors negotiate discounts for shippers. In addition, the auditing team has experts who can suggest services that will suit business needs. Parcel audit services like Audintel save money for shippers with discounted rates..

Save on your next shipment with Audintel.

Many eligible refunds remain unclaimed by businesses due to a lack of time or resources. Companies don’t take advantage of the service guarantees offered by small parcel carriers. Audintel’s small parcel audit services ensure timely refunds from shipping carriers. In addition, we address billing errors and ensure shipping carriers meet their service guarantees.

Our business intelligence tools help shippers monitor their shipping rates and surcharges. Audintel’s experts closely examine shipping invoices and advise our clients about discrepancies. With valuable insights into the shipping data from Audintel, shippers can negotiate great deals with parcel carriers. Audintel optimizes small parcel shipments seamlessly.

To wrap it up.

Companies find it complex to identify inaccuracies in shipping invoices on their own. Parcel audit software has its drawbacks. Small parcel audit services help companies streamline their shipping processes with minimal effort. Parcel audit services are vital for the efficient and cost-effective management of your transportation spend. Choosing Audintel is beneficial for businesses to make informed, data-driven decisions. Are you ready to optimize your shipping operations with small parcel audit services? Contact us at +1 (619) 354 8539. to learn about our parcel audit services. In addition, you can visit our Audintel website.

UPS and FedEx 2024

GRI 2024: Effects and comparison between FedEx and UPS GRIs

by BlogTSM

The holiday season is here. It’s the time for shipping carriers to announce their General Rate Increase (GRI). Major shipping carriers like FedEx and UPS have already announced the GRIs for 2024. Well, what does this mean for e-commerce retailers or small companies? This blog will discuss the concept of General Rate Increase, its impact on businesses, and the strategies adopted by them. Further, we give a comparison of FedEx and UPS rates for 2024.

General Rate increase

General Rate Increase or GRI is the annual percentage increase in shipping rates by shipping carriers. This rate hike is across all services offered by parcel and freight carriers. GRIs announcement is usually in the fall of the previous year. The percentage hike is generally between 4-6%. The GRI announcement allows businesses to plan the shipping costs of their packages.

Many factors influence GRI, like labor shortages, operating costs, and insurance. In addition, rising inflation, market demand, supply chain disruptions, and government regulations can influence GRI. Moreover, various challenges to shipping carriers’ distribution networks have influenced GRIs this year. Shipping carriers mention service enhancement, technology innovations, and fleet maintenance for the annual General Rate Increase. These rates vary between shipping carriers. Understanding the GRIs of different parcel carriers is essential for shippers to manage shipping costs.

GRI: its significance in the shipping industry

Companies with domestic and international shipments can’t take rising GRIs lightly. The shipping rates also include surcharges or value-added services. In addition, the fees of different shipping carriers rise annually. Companies can calculate shipping costs based on service levels, distances, package weights, etc. The increase in shipping rates is responsible for the rise in shipping costs to various destinations. Shippers have to plan their shipments according to the impact of GRIs.

Impact on General Rate Increase on shippers’ packages.

GRI percentage is higher for packages going a longer distance. Moreover, express packages or air freight rates are high. Usually, GRI is more economical for ground packages than express ones.

The impact of GRI is less for companies that have negotiated a rate cap in their shipping contracts. They can further ask for discounts from the shipping carriers. However, companies with no contracts pay extra with the rise in GRIs annually. However, the rate cap does not apply to surcharges.

Our earlier blog has discussed about impact of GRI. Here, we will discuss the new shipping rates in 2024 of the premium big carriers, FedEx and UPS.

Comparison between FedEx and UPS rates

FedEx GRI will come into effect from January 1, 2024. UPS GRI will be effective from December 26, 2023. GRI varies from the surcharges or value-added services levied by FedEx and UPS.

The U.S. domestic, export, and import services, FedEx Express shipping rates have increased to 5.9% on average, as per the FedEx website. According to the UPS website, the rates have increased to 5.9% for UPS Ground, air, and international services. Both FedEx and UPS claim that GRI 2024 is lower than last year’s GRI. However, their demand surcharges for the holiday season are moving northwards. These rates also do not include fuel surcharge.

The annual rate guides of FedEx and UPS help shippers decide their shipping strategies. We will try to understand the figures in service and preview rate guides for 2023 and 2024.

  • Daily rates of UPS and FedEx

The UPS service guide consists of the domestic daily rates for packages weighing 1 lb to 150 lbs within 49 contiguous States. Daily rates for packages weighing less than 150 lbs for international shipments are under different UPS Worldwide, UPS Standard from Canada and Mexico, export, and import headings.

The UPS service guide contains domestic rates for services like UPS Next Day Air Early, UPS Next Day Air, UPS Next Dy Air Saver, UPS 2nd Day Air A.M., UPS 2nd Day Air, UPS 3 Day Select, UPS Ground for shipping Zones 2-8 within the 50 states. Chart 1 compares between 2023 and 2024 daily rates for the UPS express and UPS ground package delivery services.

Chart 1: UPS list rates

Chart 1 will focus on list rates of : UPS packages of 1 lb within the U.S. daily rates for services in Zone 102 (Next Day Air), Zone 202 (2nd Day Air), Zone 2 (Ground), Zone 242 (2nd Day Air A.M.) for Destination ZIP codes starting with 004-005. For further details on all the daily rates of UPS, check their website.

FedEx service guide provides information about the list rates of FedEx Express packages within the U.S. and the international package rates for export and import. The guide consists of the FedEx ground rates within the U.S. and Canada. UPS Ground and FedEx Ground services are cheaper than Express Services.

The FedEx U.S. express packages cover FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day A.M., FedEx 2Day, and FedEx Express Saver services. It includes Zones 2-8 in the contiguous U.S. for packages weighing less than 150 lbs. Further, Chart 2 covers the U.S. express packages of 1 lb in Zone 2 (within 150 miles) across service levels, including Ground. It compares the 2023 and 2024 rates and their GRI percentages.

Chart 2: FedEx list rates

Chart 2 will focus daily rates of FedEx packages of 1 lb within the U.S. for services in Zone 2. For further details on the service levels of FedEx, check their website.

Shippers can explore the services that deliver their parcels faster and economically. Further, companies can explore the list rates of other services to suit their shipping needs.

  • Surcharges or Value-added services offered by FedEx and UPS

Alternatively, companies know about the surcharges levied by FedEx and UPS every year. Below Charts (3 and 4) compare FedEx and UPS surcharges for 2023 and 2024.

The value-added services of UPS will be effective from December 26, 2023. Domestic charges like additional handling, address correction, delivery area surcharge, remote area surcharge, Pickup fees, and more have seen an upward trajectory. The below chart 3 gives an overview of a few value-added services from 2023 and 2024.


Chart 3: UPS Surcharges

UPS website gives information in detail about the value-added services and other charges. In addition, it also provides the changed zip codes, where the delivery area surcharge is in 2024.

According to the FedEx authorities, there will be an assessment of Additional Handling charges and Oversize charges of packages for multi-piece international shipments. FedEx Ground and Express services will face an increase in surcharges from January 1, 2024. The customs clearance service fees on imports are also increasing in 2024.

Chart 4 depicts the increase in the percentages of surcharges in 2024 compared to 2023.

Chart 4: FedEx surcharges

Zones 3-4 also include  U.S. Ground Zone 22 (Intra-Alaska), U.S. Ground Zone 14 (Intra-Oahu), and U.S. Express Intra-Hawaii.

FedEx freight shipping charges are also changing from January 1, 2024.

Not just the daily rates, companies are facing the brunt of high demand surcharges and fees levied by UPS and FedEx. Businesses need to devise shipping strategies to circumvent the impact of increasing GRIs year-on-year (YOY).

  • Effect of Minimum Charges and the necessity of rate caps

Minimum charges are the lowest fees a shipper will spend on any package. Carrier package minimum charges are the fees for a Zone 2 one-pound package. Minimum charges apply to shippers even if they have existing discounts.

Chart 5 compares the UPS Minimum Net Charges for some services in 2023 and 2024.

Chart 5: UPS Minimum Net Charges for package with 1 pound weight for UPS Ground – Zone 2, UPS Next Day Air-Zone 102, UPS 2nd Day Air- Zone 202, UPS Next Day Air Saver – Zone 132

Fedex sets minimum charges for all services. It is usually for a Zone 2 one-pound package for all services. The comparison between the services in 2023 and 2024 is in Chart 6.

Chart 6: FedEx Minimum charges for zone 2, 1-pound packages

Shippers can get discounts on low-weight packages with FedEx minimum change reductions in their contract agreements.

Moreover, companies with rate caps can limit any increase to a value close to a negotiated rate cap. Hence, companies must include rate caps in their contract negotiations to keep rate increases in check.

Ways to offset the impact of GRI on businesses

It’s not possible to avoid the impact of GRI on businesses. However, there are ways to reduce shipping costs effectively. A few ways to offset the GRI impact are:

  • Negotiations

Shippers can revise their contracts if they have not renegotiated for many years. Further, parcel carriers face competition from new entrants and fluctuating shipping volumes. It gives shippers a chance to negotiate for better shipping rates. 

  • Intelligent use of shipping data

Companies can use their historical shipping data to plan their shipping strategies. The data helps shippers understand their shipping operations. A deep knowledge of the shipping profile, service levels, distance, and package weights helps keep shipping costs down.

  • Diversifying carrier network

Shippers can use alternative carriers, regional carriers, and postal services at competitive rates. Packages can be sent to various locations easily through different shipping carriers. It helps in reducing the impact of shipping rates substantially.

  • Focus on packaging

Oversize packages are expensive to ship for companies. So, shippers have to focus on packaging goods to minimize space and save money.

Conclusion

Businesses need to understand the different aspects of GRI. In addition, its impact on shippers’ shipping profiles will help companies reduce shipping costs. Conducting an audit of the shipping operations allows companies to negotiate better with shipping carriers. Further, partnering with Audintel gives shippers valuable insights into their shipping profile. It helps them to prepare cost-effective shipping strategies to reduce GRI impact.

About Audintel

Audintel is a technology-first and customer-focused organization that optimizes logistics and shipping costs. Our trustworthy solutions help clients gain deeper insights into their logistics spending. For more information about GRIs and their impact on your business, contact us at +1 (619) 354 8539 or visit our Audintel website.

Small parcel Shipping Challenges-3

Shipping small parcels: Surmount the challenges with ease

by BlogTSM Services

Sending individual packages through shipping carriers is not as easy as it looks. Different shipping carriers offer various areas of expertise for shipping items. Choosing the best shipping carriers for small parcel shipping can get confusing. UPS, FedEx, and USPS are the major shipping carriers in the U.S.  However, a recent Reuters report says that UPS had an unfavourable quarter due to falling demand from e-commerce and labor issues. The impact of inflation on operating expenses is affecting shipping carriers. So, parcel carriers are competing with each other to offer discounts and lower transportation costs. Despite the economic slowdown, there is an opportunity for an increase in market growth.

According to some reports, the parcel shipping volumes will reach 256 billion in 2027. Shipping carriers believe e-commerce retailers and small businesses will have good holiday sales this quarter. Companies need to optimize parcel shipping operations in anticipation of rising holiday sales. They have to reduce their overall transportation expenses and adopt a multi-carrier strategy. In addition, the right innovative solutions can help businesses overcome the hurdles of shipping small packages.

This article gives further details on clever ways to ship parcels. In addition, shippers can learn about the fastest and cheapest ways to reduce shipping costs.

Our earlier blog gave a broad overview of overcoming the challenges of small parcel shipping.

Challenges of small parcel shipping

Companies face multiple challenges when shipping small parcels. One of the challenges during this holiday season is ensuring timely delivery of packages. Shipment tracking and insurance ensure that companies provide on-time delivery of packages. Shippers work with parcel carriers to safeguard against delayed or lost shipments.

Further, UPS and FedEx have announced their annual GRIs. It will increase the costs of sending small packages. Lightweight packages with high dimensions can also prove costly for parcel shippers. Surcharges for fuel, residential, delivery area, etc., levied by shipping carriers increase the shipping expenses.    

Customer expectations for faster and free delivery of packages is a new reality. So, many companies have to fine-tune their shipping operations to reduce costs. Small and medium-sized companies lack the expertise to navigate complex shipping operations. Third-party logistics providers or 3PL can provide support in areas such as:

  • Carrier management for parcel deliveries

During the peak holiday season, parcel carriers face capacity constraints. Thus, it is vital to have efficient carrier management for shipping small parcels. A multi-carrier strategy helps companies ship their packages according to their business needs. Regional parcel carriers can ship locally or to particular regions of the country.

 Moreover, it is necessary to know the various holiday shipping deadlines for the parcel carriers. Shippers can plan their shipping strategies based on the deadlines. Shipping carriers provide limited information to customers as they have their software platforms to track packages.

Third-party providers have in-depth knowledge of minimum rates, surcharges, volumes, etc. 3PL can give appropriate information about the carriers and track packages in real time. They have established relationships with parcel carriers and help secure discounts on list rates. In addition, 3PLs can manage a company’s carriers for parcel deliveries if there is a delay or unforeseeable issues.

  • Shipping route disruptions

High shipping volumes increase the workload of truck drivers. Moreover, in the peak holiday season, the shipping routes get longer, and trucks have more parcels. There are more chances of human errors in such situations. Last-mile delivery management with technological advancements is necessary to track parcels in real time. Optimizing shipping routes by identifying potential bottlenecks helps in the timely delivery of parcels. Moreover, a delivery hub can cut shipping costs for shippers.

AI-based innovative technology allows companies to have real-time information on package deliveries. Further, 3PLs  have local partners that can handle last-mile deliveries. A parcel Transportation Management System (TMS) allows driver route optimization so a maximum number of parcel deliveries can occur. It does not compromise a customer’s preference for the time and date of parcel delivery.

  • Minimizing the stress of split shipments

Split shipment involves an order divided into multiple shipments for separate dispatches. Split shipments expedite the delivery process but are costly for businesses. The involvement of different carriers and operational overheads can increase shipping expenses. To streamline their processes, companies have to manage their inventory levels to minimize split shipments.

Third-party providers can provide technologies like warehouse management systems (WMS) or order management systems. It helps companies route orders to cost-effective distribution centres and save money. Further, they leverage shipping data to forecast demand and minimize the likelihood of stockouts.

  • Analyze shipping data with third-party logistics

Parcel shipping data like point of origin, package status or exceptions, weight, and size of parcels is essential for strategic business planning. Shippers have to make sense of the historical shipping data to save costs. Systematic shipment monitoring, parcel carrier performance, and customer communications are possible when shippers have data at their fingertips.

Third-party logistics providers, or 3PLs, help companies garner profits with business intelligence tools and provide frequent shipping information to companies. By analyzing the historical shipping data, 3PLs help shippers manage their parcel spend. Further, parcel auditors can continuously monitor shipments, track parcels, and issue real-time customer notifications. The state-of-the-art software tools compare carrier performance, collect refunds wherever applicable, and reduce transportation costs.

Cheaper, faster, and more efficient ways to reduce shipping costs

Shippers can reduce shipping expenses depending on the size and weight of packages, distance, and choice of shipping carriers. Usually, USPS is the cheapest shipping carrier to ship packages. Small parcel shipping by USPS involves

  • First Class Mail for packages such as documents, letters, etc., and does not involve tracking
  • First Class Package Service is for parcels less than 16 ounces
  • Priority Mail is for goods that weigh more than one pound.

 Further, according to some reports, the U.S. Postal Services won’t be leving peak surcharges this holiday season.

UPS offers UPS Sure Post service for small packages weighing less than 10lbs. However, FedEx Ground shipping and UPS Ground shipping services are the cheapest ways to ship small parcels. UPS and FedEx have different rates based on weight and distance for faster delivery of small packages. Shippers can refer to the Service Guide of FedEx and UPS to decide which services suit their financial and business needs.

How partnering with Audintel helps overcome the hurdles of small parcel shipping

Audintel’s Transportation Management System (TMS) and integrated software solutions help shippers and 3PLs in timely parcel deliveries. We provide customizable dashboards for real-time tracking and monitoring of shipment status. Customers receive real-time notifications about their parcel status. Our experienced team gives insights into the areas for potential savings during carrier contract negotiations. Audintel’s expertise has helped many companies negotiate discounts on shipping rates, thus reducing shipping costs.

Concluding remarks

Shipping small parcels to customers is not as easy as it looks. Shippers need to overcome numerous challenges for customer satisfaction and repeat business. Third-party logistics providers and parcel management systems help in parcel shipping operations for companies. Audintel’s audit solutions and advanced software tools help shippers understand their shipping costs. We provide customized solutions to overcome the hurdles faced during small parcel shipping. Contact us at +1 (619) 354 8539. to find out how to have seamless parcel shipping. Further, you can visit our Audintel website.

Small_Parcel_Shipping_Challenges

How to overcome challenges of small parcel shipping?

by BlogTSM

Small Parcel shipping is challenging for many shippers. Businesses need strategic solutions with the right software tools to ship small parcels efficiently.

The convenience of ordering online is here to stay. Experts believe there’s been a significant increase in the volume of shipping small parcels to customers directly over the past few years. However, small parcel shipping domestically or internationally requires strategic planning. Inflation, record-high gas prices, supply chain disruptions, and more contribute to various challenges during shipping. Shippers need to automate shipping processes to save time and enhance customer satisfaction. This blog will focus on the challenges shippers face when shipping small parcels.

Small parcel shipping

Packages such as envelopes, posters, small boxes, etc., weighing less than 150 lbs are small parcels. Shipment of small packages requires efficient pickup, transit, and delivery. They do not occupy full truckload capacity like freight or large packages. Each small parcel order is unique and has various requirements. Shippers face challenges when shipping small parcels direct to customers (D2C).

Some of these challenges include:

  • Management of high volumes of small parcels

As customers shifted to e-purchases, there has been a rise in small parcel shipping volumes. Warehouse workers and truckers keep parcel volumes moving to prevent supply chain disruptions. LTL carriers disassemble small parcels or less than pallet load (LPL) shipments to fill their trucks. It may cause damage to the goods during transit.

  • Labor requirements

Processing small parcel shipments requires more labor or workers than bulk shipments. It leads to higher shipping costs for shippers. This cost is either transferred to customers as shipping fees or is a part of the product. Companies hire more people for warehouses and fulfillment centers for shipping small parcels.

  • Overcoming packaging hurdles

Small packages can vary in size, weight, and dimensions. Picking out the ideal packaging material is necessary to prevent shipping delays. Padded mailers and envelopes are appropriate for single items. Fragile items need packing in boxes with proper dimensions to avoid damaging goods in transit. In addition, heavy packages cost more to ship than light ones.

  • Accessorial fees charges

Many transportation service providers charge accessorial fees for small parcel shipping. These fees are residential charges, additional handling, address correction, weekend pickup/delivery, and more.

  • Selection of appropriate parcel carriers and services

Last-mile delivery of small parcels is essential for better customer satisfaction. Choosing the correct local parcel carriers is necessary as inexperienced and untrained courier staff can damage the goods. Hence, selecting the parcel carrier and the appropriate services allows shippers to cater to their customers’ needs.

Retail consumers expect on-time delivery and updated arrival status of packages. And failure to meet customers’ expectations causes loss of repeat business. Providing reliable services with greater visibility gives shippers an advantage over their competitors. Many parcel carriers like UPS and FedEx enhance customer experience with their services.

UPS small parcels

UPS has various options for small parcel delivery that are tailor-made for small businesses. They provide access to Drop Boxes, pickup options, and an-inclusive rate for shipments. They have defined the price range and service level for small parcel deliveries of particular dimensions at specific times. For example, UPS Ground services can provide 1-5 delivery dates for shipping small parcels.

FedEx small parcels

FedEx has different package classifications based on size and weight for delivering small parcels. For instance, FedEx’s Flat packages have short dimensions and a volume of around 400 cubic inches. FedEx has various small parcel limits for domestic Ground services than Express Services.

A third-party (3PL) provider helps shippers in carrier management. They can negotiate better shipping rates for shippers to get better discounts. Further, they can compare carrier performances and suggest services of multiple parcel carriers. With expert knowledge of packaging expertise, they can provide cost-effective solutions.

Audintel- for faster and cheaper small parcel shipping

Our state-of-the-art shipping optimization platform helps manage small parcel delivery. We offer customizable dashboards that continuously monitor shipping status and on-time delivery of packages. Audintel’s automated real-time customer notifications keep our clients abreast of the entire shipping operations of packages. Our expert team can provide shippers with data to compare carrier performance, identify areas of saving money and time, and more.

Companies can streamline their small parcel shipping needs with Audintel’s Transportation Management System (TMS). We provide customized views within our dashboards even for the shipping’s made through small parcels to different destinations. Moreover, our software tools help reduce shipping costs for our clients by providing alternate solutions.   

Finally

During the pandemic, there was a drop in sales of brick-and-mortar products. E-commerce sales of small packages have grown exponentially. Smooth, reliable small parcel shipping is vital for shippers to improve their profitability. So, efficient management of high volumes of small parcels with advanced shipping software solutions is the need of the hour. Partnering with Audintel helps shippers overcome these challenges. We address each business’ unique customer preferences to ensure effortless, cost-effective delivery of small parcels.

Along with customized dashboards, Audintel do have 200+ reports available in their portal which are available for live customers which will help in generating and scheduling the reports based on their required criteria.

Wondering how much it will cost for small parcel shipping? Learn more about small parcels by contacting us at +1 (619) 354 8539 or visiting our Audintel website.

parcel auditing services

Parcel auditing services: transforming businesses intelligently

by BlogSpend Intelligence

Small parcel audits in the U.S. are vital for all businesses. Parcel audits ensure that companies are not paying more to shipping carriers. Further, timely audits can unlock savings for companies.

Parcel auditing services are necessary for shippers in the U.S. It questions businesses about optimum usage of their shipping data for business growth. Our earlier blogs were on affordable parcel auditing services. The focus was on reducing shipping costs and identifying service failures with software. This article discusses the way parcel auditors use shipping data to help shippers. In addition, we will learn about the advanced technology that aids parcel auditing services save money for companies.

Parcel auditing services and data analytics

Parcel audits involve the process of studying the shipping invoices in detail. It also requires a review of carrier contracts and discovering unclaimed refunds. Technology in the form of data analytics helps shippers save money. As companies are aware, small parcel shipping generates lots of data. Analysis of the data helps in eliminating inefficiencies and errors. Parcel auditing services use the analysed data to control small parcel expenses.

What kind of Parcel data is important?

Understanding a company’s shipping profile is essential for parcel audits. Analyzing the following data on parcels helps shippers improve their bottom line. Data covering

  • the shipping weights of packages
  • the dimensional weight calculation of parcels
  • the shipping zones for shipments
  • the parcel delivery time
  • accuracy of shipping invoices
  • various surcharges of different carriers
  • minimum charges of lightweight packages

Further, knowing about the shipper’s data in carrier agreements is necessary. It helps shippers during carrier contract negotiations to save money.

KPI dashboards in Parcel auditing

Similarly, Key Performance Indicators (KPIs) are necessary to check a business’ progress. In addition, it helps companies identify problems and make quick, timely decisions. The KPIs include:

  • Number of orders shipped
  • Tracking the delivery time of shipments
  • Identifying potential shipping issues
  • Shipping costs during transit
  • Warehouse expenses

and more.

With this in mind, KPI dashboards are vital tools for parcel auditing services. The dashboards provide a complete view of the shipping data of businesses. For instance, KPI dashboards give information about the total shipping costs of different parcel carriers.  Further, the dashboards provide an overview of shipping activity, late shipments, refunds, etc. Thus, KPI dashboards provide shippers with customizable data visualization with performance indicators.

Importance of Business Intelligence in parcel  auditing

Business Intelligence (BI) plays a crucial role in parcel auditing. It provides shippers with shipping reports and dashboards for managing their shipments. So, let’s understand-

What is Business Intelligence?

Business Intelligence (BI) is software that utilizes business data and makes it user-friendly. BI uses data analytics, text mining, and machine language processes. BI tools collect, store and analyze data from businesses. The data presented to users is through graphs, dashboards, charts, and reports. Further, shippers utilize the information to understand trends and variances. Thus, they can take appropriate action.

Benefits of using BI in parcel auditing services

Shippers need detailed information about their shipping operations at their fingertips. Parcel auditing services use BI tools to collect and analyze data in real-time. Shippers receive the information in the form of reports and dashboards. Customized dashboards help in tracking shipping performance by benchmarking. Thus, shippers visualize their data and make informed decisions.

Parcel auditing services optimize the parcel shipping network with the help of BI. In addition, parcel audits help in consolidating shipping data. Further, it provides insights into critical KPIs. Parcel auditing services like Audintel help companies optimize their shipping needs.

How does Audintel deal with the shipping data of businesses?

Our data intelligence services include best-in-class cloud hosting. We have robust optimization tools and intuitive and customizable dashboards. In addition, we provide graphical visualization of KPIs. Audintel’s platform integrates seamlessly with legacy systems and processes. Our decision-making analytics helps shippers. Further, we compare multiple carrier contracts to give clients the best deals.

Audintel as a parcel auditing  service provider

Our AACE (Audit Advantage Cloud Ecosystem) platform uses BI to identify billing errors. Audintel uses AACE technology integrated with machine language (ML), saving shipping costs for companies. We spot all invalid, inaccurate, or unwarranted charges in shipping invoices. Audintel’s state-of-the-art technology platform manages complex supply chain challenges. Our dashboards are easy to use and allow shippers visual feedback on their business performance. In addition, our auditing services help shippers receive refunds directly in their accounts.

Final thoughts

Many parcel auditing services are available in the U.S. market. But choosing the right one for your business makes all the difference. As a shipper, it is vital to partner with parcel auditing services that increase your company’s revenues. Audintel uses cloud-based business intelligence tools to understand complex shipping data. We help businesses grow and manage their shipping costs in real-time. With Audintel, you can be sure that all your data is encrypted and secure. For information about our parcel auditing services, contact us on +1 (619) 354 8539 or visit our Audintel website.

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Competitive parcel auditing services: essential for shippers

by BlogSpend Intelligence

With rising inflation and skyrocketing fuel prices, businesses need to economize and improve profitability. Shipping small packages to customers needs scrutiny as service failures lead to higher expenses for shippers.

Affordable patent auditing services are essential to monitoring shipping expenses. Our earlier blog focused on affordable parcel auditing services that reduce shipping costs. This article focuses on the various aspects of parcel auditing services, such as package shipping spend, services offered, and their software.

Affordable parcel auditing services

Parcel auditing analyzes the shipping data of companies and unearths any invoice errors. Parcel auditing services of parcel auditing companies work to fix the invoice errors and get refunds from the shipping carriers. Web-based technology used by parcel auditors spares shippers from purchasing hardware, thus saving money. In addition, parcel auditing services do not involve set-up fees or up-gradation in current technology resulting in cost savings.

Parcel shipping spend

According to the latest reports in business wire, US parcel volume will grow exponentially by 2027. It is due to increasing demand for internet retail. Small parcel shipping is a critical component of shipping systems. An audit on small parcel shipping spend allows companies to save money. Shippers are eligible for a refund from shipping carriers for service failures like late deliveries, invalid surcharges, billing errors, and more. Parcel auditors like Audintel have a real-time dashboard that monitors small packages’ shipping spend while controlling shipping costs.

Outsourcing parcel auditing

Manual parcel auditing is time-consuming and is prone to human errors. So, by outsourcing parcel audit work to a third party, shippers save time as they do not need to track each shipment and file refund claims. Further, the parcel auditors secure refunds for service failures with direct credit to shippers’ accounts. Parcel auditing services provided by a third party give companies valuable insights into their shipping process.

Services offered by a parcel auditing company

Small parcel auditing is a complex process that requires data evaluation at each stage of the shipping process. Parcel auditing companies analyze the parcel invoices from the shipping carriers. In addition, tracking parcel delivery to customers and information about any shortcomings is conveyed to the business owner. Some of the common service failures made by parcel carriers include:

  • Late deliveries: Parcel delivery to the customer beyond the scheduled delivery time
  • Surcharge errors: Parcel invoices with incorrect address correction charges, delivery area surcharge, and other surcharge errors
  • Dimensional weight errors: Shipping carriers levy wrong dimensional weight charges on packages
  • Duplicate charges: Double invoicing for a single parcel shipment
  • Manifested not shipped parcels: Shipping carriers like UPS charge for a package manifested but not sent to its destination
  • Deviation from negotiated shipping rates and discounts: Parcel shipment with different shipping rates and discounts.

Parcel auditing services offered by parcel auditing companies provide effective solutions for service failures. They inform business owners about billing errors, changes in shipping rates, additional surcharges, etc. Parcel auditors use intuitive auditing software that automatically notifies any discrepancies in the shipping process.

Small parcel auditing software

The tracking and monitoring of each small parcel shipment use cloud-based shipping software. The data analysis improves shipping spend management and curbs excessive expenses. In addition, the software monitors the performance of shipping carriers, identifies invoice errors, and files for unclaimed refunds. Shippers reduce their parcel shipping spend and improve their shipping operations with ease.

Freight audit software

Freight audit software minimizes complex freight auditing processes. Due to the automation of the freight audit process, labor decreases, and cost-efficiency increases. The shippers get greater clarity of their shipping expenses. Also, there is streamlining of the shipping process. Further, automatic uploading of the shipping documents into the system helps track invoices efficiently. Freight audit software benefits many industries such as manufacturing, pharmaceuticals, construction, electronics, etc.

The software used by parcel auditors improves customer satisfaction and increases brand loyalty, which benefits shippers’ businesses.

Benefits of using Audintel’s services

Parcel auditing services of Audintel are economical and customized to cater to our client’s needs. We provide greater transparency to our clients by using their shipping data. Audintel has more than forty customized dashboards and shipping reports for our clients. Our team uses updated, secure technology to track and monitor the shipping data of our clients. We assist business owners in negotiating the best carrier contracts and saving money. Companies benefit tremendously by partnering with Audintel as it honors their parcel delivery commitments to customers. We help shippers receive refunds promptly from shipping carriers for service failures and increase their profits.

Final thoughts

Small parcel delivery services like FedEx and UPS do not always stick to their delivery commitments. It impacts the shippers as they have to deal with angry customers. Companies offer extra credit or special offers to keep customers happy, thus involving double expenses. Audintel’s parcel auditing services give companies a helping hand in receiving all the refund credits from shipping carriers. To know better about the full extent of our parcel auditing services, contact us at +1 (619) 354 8539 or visit our Audintel website.

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Shipping trends of 2022 that redefine the way we ship

by BlogSpend Management

The supply chain industry has faced many challenges in 2020 and 2021. This year appears to be difficult for small and mid-sized businesses. In addition to the pandemic resurgence in some countries, the Ukraine conflict has posed many challenges.

Shipping costs have risen as FedEx has hiked its peak surcharges for international parcel and freight shipments. Many areas of the shipping industry have also seen disruptions. This article will explore the shipping trends of 2022, focusing on small packages.

Shipping trends of 2022

Online buying has put tremendous pressure on the supply chain industry. E-commerce customers are expecting faster delivery and returns of items. Small and mid-sized businesses are looking for opportunities to mitigate late parcel deliveries. With this in mind, here are ten shipping trends of 2022 that will change the way we ship parcels.

  • A rise in shipping costs

Parcel carriers have hiked annual general rate increases (GRI) and surcharges leading to a rise in the shipping costs. Unprecedented consumer demand for same-day delivery has led to increased shipping volumes. In addition, inflation is surging upward due to supply chain issues. Shippers need to evaluate the services they need to spend on to offset the rise in shipping costs. Further, businesses are advised not to change their parcel carriers or renegotiate their carrier contracts. It is because parcel carriers offer less attractive terms than their existing agreements.

  • Congestion at warehouses, port terminals

Due to the pandemic restrictions in countries, the waiting time to load and unload goods has risen. As a result, there is congestion at warehouses and port terminals, causing shipment delays. There is a backlog that is hampering shipping operations. Opening new fulfillment centers or physical stores in heavily populated areas brings products closer to the public. It allows shippers to provide quick parcel shipping to their customers.

  • Digitalization

The pandemic caused a shortage of professional workers such as logistic operators. Digitalization of shipping processes like warehouse operations is improving supply chain efficiency. Shippers can avoid several manual steps during order fulfillment by using shipping software solutions. Digital solutions are reducing shipping costs and enhancing shipping processes.

  • Personalized delivery experience

Customer experience is essential for recurring shipping business engagement. It is necessary to provide a personalized delivery experience with reliable, on-time delivery of packages. Clear and transparent communication regarding delivery and tracking of parcels helps customers. Further, adopting new technology to limit package theft and enhance the delivery process are other factors to increase customer satisfaction.

  • Sustainability

An increasing number of consumers are trying to reduce the carbon footprint of parcel deliveries. Re-cyclable biodegradable material is in use for packaging and shipping goods. Further, shippers use ground services to reduce overall transportation routes. Shipping businesses keep sustainability in mind by using eco-friendly boxes and mailers. Parcel carriers are using electric vehicles for shipping parcels to customers. Moreover, shipping carriers meet environmental, social, and governance (ESG) standards by using electric-powered delivery vehicles.

  • Optimization of supply chain management

The “just-in-time” supply chain has become unpopular during the pandemic time. Shippers have shifted to holding a large buffer stock for any surges in demand and a decrease in the supply of goods. Shippers are examing their logistics and inventory data to optimize supply chain management. Inventory and e-commerce data help shippers optimize their shipping processes while reducing shipping costs.

  • Last-mile innovation

Last-mile delivery of packages is an integral part of customer satisfaction for businesses. Shortage of drivers can cause a delay in last-mile deliveries of parcels. Innovation in the form of robotics, drone, and self-driven vehicles will prevent poor last-mile delivery experiences. Some shipping businesses are already using drones to drop off medicines. However, using a drone for parcel delivery is difficult for communities. They require special permission to receive such deliveries. Big Data, Artificial Intelligence, and Machine Learning have the potential to make logistic processes more simple.

  • Reverse logistics

A drawback to the increase in online shipping is the rise in returned packages. Shipping businesses have to pay for the returns processing fee with the increased shipping rates of parcel carriers. It eats into the profit margins of shipping companies. As a result, some big businesses offer refunds and keep the product in the customer’s hands. Alternatively, some shipping companies are mitigating returns costs with a multi-carrier strategy. Therefore, shippers use artificial intelligence to calculate whether it is economical to process a return.

  • Local pop-up e-commerce distribution centers

Shipping companies respond to local shipping demands by operating local pop-up distribution centers. Shipping parcels from long distances costs more. Lessening the delivery time by renting out warehouses allows customers to receive orders sooner. Expect gig economy carriers to rise in 2022. Shippers are planning to use the services of gig economy carriers to deliver packages within a few hours to customers.

Partnering with parcel shipping audit company

2022 will be a challenging year for shipping businesses. But, partnering with the right parcel shipping audit company can save money for businesses. In addition to negotiating the best shipping rates, Audintel helps businesses receive discounts for services from parcel carriers. Audintel helps shippers analyze their shipping data for inaccuracies, accessorial charges, refunds, etc.

Finally, the Shipping industry has to change with the times. What was popular two years back is not feasible now. Shippers have to make critical decisions and adapt to the ever-changing consumer demands. Data-driven innovation will have an impact on package deliveries in 2022. Partnering with Audintel will be beneficial for shipping businesses. You can reach us for further discussions or you can call us at +1 (619) 354 8539. Further, you can also learn about our services on Audintel website.

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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 info@audintel.com. To know more about us and our services, visit the Audintel website or call us at +1 (619) 354 8539.

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How late shipments could impact shipper’s KPIs

by BlogTSM Services

Overview 

Late shipments are something that shippers should be paying attention to. Shippers have to take necessary action steps to improve their KPIs and cut down costs.

What will you know from this article

  • An overall insight into how to identify late shipments and the need for identification, through market research.
  • Financial impact on shipment costs.
  • How to submit claims to carriers.
  • The role of audit firms in the identification and submitting claims through a variety of software tools.

How can Audit firms help the shippers

We will discuss the need for shippers to make a strategic decision whether to go with audit firms or not. Lastly, we shall talk about the audit firm’s add-on services offered, compensation models, and how firms deploy security measures to protect the confidentiality of sensitive customer information.

We hope this article surely helps you to take your current business to the next level just by implementing some of the best practices discussed in detail below.

Let’s deep dive on, what are late shipments and how would you identify a late package?

In the current context even if we try to know we cannot find out if the package is delivered on time. Most of the time, it is very difficult to identify, and this is where the tools come into the picture. The best-in-class tools produce the best result.

What is the need to identify late packages?

  • For explanation purpose, we would like to categorize the reasons into two: First and foremost is the performance of a company depending on how well they are satisfying their customers. Customer satisfaction depends on a better price, quality product, and product on-time delivery. On-time delivery plays a pivotal role in the success of a company. But identifying the late packages is one of the KPI for the company’s growth.
  • The second reason is the huge unimaginable revenue potential. Most of the carriers offer GSR (Guaranteed Service Refunds) for shipments not delivered on time. If in case they don’t fulfill the promise, the carrier would offer a refund on shipping charges. However, they just don’t refund the money just like that. There is a process built around for claiming for refunds, on which this article is built upon.

Submitting Claims for late shipments:

The main catch for submitting the claims is, these usually have to be submitted within 15 calendar days of product delivery or invoice date. Usually, most companies simply don’t have time to pursue these. The majority of shippers don’t even realize that they are leaving money on the table. This is because any shipment if delivered even a minute late to committed time is considered late. The shipper is entitled to a refund for such late shipments. Research reveals that Late shipments recoveries can recoup up to 3% of shipper’s costs. However, handling these claim submissions is a little time-consuming. It involves identifying the late packages, process them in the system and submit for claims. This is where audit/recovery firms come into the picture.

Role of Audit firms :

Audit firms analyze each package, identify late packages using their software tool, and submit claims on the behalf of the shipper. They just charge a contingency fee based on the savings made. The percentage of recoveries generated by shippers versus audit firms varies significantly as audit firms have processes in place, complete domain knowledge, tools in place, and manpower to implement. The higher percentage of credit received depends on the proficiency of the audit firm.

How Audintel can help you :

AUDINTEL is a one-stop solution that delivers a secure small parcel audit platform by using proprietary Artificial Intelligence (AI) to drive predictive analytics, hosted by Amazon Web Services (AWS), the best in class cloud hosting provider. AUDINTEL’s 36-point parcel audit is the most proficient auditing process currently available, and its ability to maximize credits from your carriers is very unique. AUDINTEL’s small parcel audit disputes all eligible late deliveries and any other mischarges tied to the package. For further queries, please reach out to info@audintel.com.

Shipper’s decision-making evaluation:

Depending on the volume of shipments, a shipper can approach the audit firm for helping them in recovering the percentage of their costs. After thorough market research, the shipper should be finalizing the company. It constitutes a team with an immense knowledge base and has shown proven results. Audintel has a fully automated monitoring system and has security controls in place. The client’s shipping data consists of customer names and addresses and hence should be kept confidential.

On the same lines, Shippers should also be checking on add-on services offered by the audit firms to justify the cut offered. Add-on services may include rate audit (whether the carrier is applying the correct rate and is not charging unnecessary surcharges), Audit platform access, reporting, and maintenance. The contracts between shippers and auditors may vary from shipper to shipper. The compensation plan may vary from gain share split/contingency basis to a flat rate per transaction, whichever suits the shipper.

Conclusion:

To conclude, customer service is of prime essence, a satisfied client means you are satisfied. Hence, it is highly encouraged for shippers to not sign a waiver on GSR with any carrier. Additionally, you ensure that you get refunds for late deliveries. For further queries, please visit Audintel or contact us at +1 (619) 354 8539 or mail to info@audintel.com.