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Reduce shipping costs of small parcel shipments seamlessly

by BlogTSM Services

“Fast delivery” and “free shipping” are the terms keeping businesses on their toes. Small business owners have to fulfill customers’ expectations while keeping shipping costs down.

It is difficult for small businesses as they know the expenses involved in shipping. In addition, shipping carriers increase shipping rates each year. Here, we will cover the ways to lower shipment costs and make profits for companies.

Factors affecting shipping costs

Reducing shipping costs is vital for increasing profits in businesses. The main factors affecting shipping costs include

  • Speed and service
  • Weight and dimension
  • Shipping destination
  • Shipping volumes

These factors affect the calculation of shipping charges. However, shippers can reduce expenses by making changes in shipping methods.

Ways to reduce shipping costs

69.8% of online shoppers abandon their carts due to extremely high costs (research by Baymard Institute). The rise in shipping costs is due to various reasons.  It could be due to taxes or shipping rates. As shipping companies have no control over taxes, there are some ways to reduce shipping costs. We, at Audintel, advise our customers about ways to save money.  Here are five easy ways to lower shipping costs.

1. Use of modern tracking software

Shipping companies should use tracking software such as transportation management software (TMS). The software help shippers track their shipments. The tracking tools provide an accurate shipment delivery time. TMS gives shippers an edge over shipping carriers when requesting refunds for late deliveries. Audintel screens the packages and files a refund for our customers. Our automated software guides shippers’ insights into real-time shipment processes.

2. Managing shipping rates

Shipping carriers offer different shipping rates and delivery services to customers. Software like TMS gives businesses insights about shipping carriers. Shippers can choose from a list of shipping rates that suits them best. Audintel gives comparison data about the carriers’ rates to shippers. Audintel provides analytics to support shippers in making decisions regarding shipments and save money.

3. Negotiate the best price with shipping carriers

The core of each shipment is a well-negotiated deal. As a result, negotiation with shipping carriers is vital for companies. Shippers negotiate for a flat shipping fee to reduce costs. Shipping carriers like FedEx, UPS offer better rates for packages based on the size, weight, and destination. Audintel aids shipping companies in negotiating the best price with shipping carriers. We negotiate discounts with different shipping carriers for businesses. So shippers benefit from discounts offered by the shipping carriers.

4. Educate shippers on the shipping process

Shippers hate unexpected charges in their invoices during the checkout process. Shipping companies need to understand the complexities of the shipping process. Shippers need to decrease the size of the packages to save money. For instance, use a poly mailer instead of a box. In addition, companies need to reduce the weight of the parcels. For example, use lightweight packaging material. Audintel provides essential services to companies to bring down costs. We do a thorough audit to curb any mistakes caused by shipping carriers. Our checkpoints halt improper invoicing done by shipping carriers.

5. Streamline the entire shipping process

The entire shipping process from end to end needs streamlining. Companies have to optimize the supply chain model to increase profit margins. Alternatively, shippers need to pay attention to customers’ requirements. Shipping companies need to adopt processes with efficient planning. Audintel provides business models to its customers that cut shipping costs. We advise shippers about shipping strategies to increase profit margins. Shipping small parcels can be made seamless with low shipping costs.

These cost-effective ways potentially help shippers to save money and increase profit margins.

Let Audintel audit your shipments to cut undue expenses.

Shipping companies can rest easy by letting Audintel audit and manage their profiles. Our services customize tracking of shipment packages. Audintel’s shipping software provides access to the best shipping rates. It allows shippers to compare rates, pick the best one, and save time. We aid shippers in negotiating good deals. As a result, our customers receive best-in-class services and discounts. In addition, we provide shipping strategies to customers that help in reducing shipping costs.

To sum it up

Shipping is an integral part of all businesses, whether big or small. Hence, managing the shipping costs of shipments becomes crucial. With this in mind, partnering with audit companies is essential. Audintel keeps track of shipments and streamlines the process giving shippers peace of mind. The analytics provided by Audintel helps shippers to save money. If you need help in reducing shipping costs, contact us at [email protected]. To know more about us and our services, visit our Audintel website or call us at +1 (619) 354 8539.

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Scenarios in which to negotiate a new contract with shipping carriers

by BlogCost Optimization

Are shipping companies satisfied with the services provided by shipping carriers?  Also, are shippers overspending on their parcel shipment?  Shipping contract negotiations with shipping carriers can address these queries. Shipping companies require contracts that provide quality service at the best price.  So, shippers can reduce shipping costs at each stage. This article covers the kind of improvements to existing shipping agreements. We will also discuss the scenarios for the preparation of new or renewal of shipping contracts.

Shipping contract negotiations

Shipping companies enter into shipping contracts with carriers for parcel shipping.  Shippers have to know their shipping profile when negotiating with shipping carriers. Shipping companies must understand what the fine print of the contract says. As the shipping rates change every year, shippers need to keep a tab on the shipment costs. In addition, over time, shippers may realize that some parts of the agreement need improvement.

What are the improvements to be made to existing shipping agreements?

Shipping companies view information on shipment details. The shipping reports provide them information on the number of packages, total spend, services, etc. They want to see improvement in the delivery services and costs.  As a result, they examine the shipping agreements to make any improvements. These improvements could be in Dim divisor, surcharges, earned discount and base discount, minimum, MRA, etc.

Scenarios for preparing shipping contracts

Shippers are looking for ways to renew shipping contracts that benefit them. Alternatively, they are searching for shipping carriers that offer competitive prices with quality delivery service. There are five scenarios that shippers look at based on data inputs and other parameters.

  • Optimization of existing shipping agreement

Initially, when shippers and shipping carriers sign shipping agreements, the parameters are different. These parameters include surcharges, accessorial charges, weight calculation, minimum charges, and more. Each year, these charges vary due to new regulations. Consecutively, the shipping costs on each package increase every year. So, to optimize existing shipping agreements, parameters including discounts, MRA, Minimum, Dim Divisor, Surcharges are considered. For example, shippers need to review the respective carrier’s Money-Back Guarantee regularly to receive the refunds due to them.

  • Change in existing shipping contracts for cost-effective services

Existing shipping contracts require change when the services are costly. Components such as maximum weight, zone, etc., interfere in providing cost-effective services. In the case of short-distance shipments or not urgent packages, it is wise to choose cheaper services. For instance, shippers change from one service to another service that costs less for shipments.

  • Use of alternate shipping carriers for business profitability

Shippers use multiple shipping carriers to increase their business profits. The shippers have an understanding of what the competitors are offering. While negotiating shipping contracts, shipping businesses can shortlist the shipping carriers that bring them profits. If a shipper is not happy with a particular carrier’s terms and conditions, they can opt for alternate carriers which have better terms and conditions suitable for their business.

  • Expired shipping agreement

For a shipping agreement that will expire in a year, shippers can consider a new shipping agreement or renew the old one with new terms. Shipping companies can set their timeline for the termination of the shipping agreement. They can put favorable terms and conditions in the shipping contracts that improve their bottom line.

  • Discontinuation of services of shipping carriers

Shipping contracts with shipping carriers should give prominence to quality service. But if the services are causing harm to the shippers’ profits, it is best to discontinue those services. For instance, if a shipping carrier does not provide accessorial discounts to domestic Air express services. Then it is best to shift to another shipping carrier that provides these services.

How is partnering with Audintel helping shipping businesses?

Audintel plays a vital role in empowering shippers to get the best out of their shipping contracts. Our experts analyze the data and also review and improve the shipping contracts of our clients. We point out any deficiencies in the shipping contracts. Audintel helps in improving the shipping costs for shippers. Audintel helps clients understand the intricacies of an existing shipping contract. And if necessary, we help to negotiate a new shipping contract on the clients’ terms.

Conclusion

When negotiating shipping contracts, understanding shipping rates is vital. Also, the reliability and efficiency of the shipping carriers are essential. Shipping contracts should be beneficial for both shippers and shipping carriers. Audintel helps you in cutting shipping costs and balance your bottom line. If you need help in shipping contract negotiations, contact us at [email protected]. You can also learn about our services by visiting our Audintel website or call us at +1 (619) 354 8539.