UPS Zones change

UPS Shipping Zones 2025: What the Changes Mean for Your Shipping Costs

by with No Comment BlogBusiness Intelligence

According to some reports, the value of freight shipments across the US is increasing every year. Shipping data is vital for businesses to lower expenses. E-commerce retailers will look for ways to reduce shipping costs. Transportation modes, services, surcharges, and delivery speed affect shipments. Businesses require reliable shipping carriers that suit their business needs.

Leading shipping carriers like FedEx and UPS offer various services and pricing models. Calculating shipping costs is complex as shippers have to consider many variables. Shipping expenses are calculated based on delivery speed, destination, package weight, etc. Further, the US Shipping Zones are used by shipping carriers to calculate shipping expenses.

Understanding US shipping zones helps businesses optimize their delivery options. Shippers can make cost-effective decisions regarding their freight and parcel deliveries. Here, we will discuss the US shipping zones and the latest changes in the UPS Shipping zones. In addition, we will look at new UPS surcharges introduced in March 2025.

Understanding US Shipping Zones

The geographical distance for package delivery is a US Shipping Zone. The US Shipping Zone calculation is across the 48 contiguous US states. Alaska and Hawaii have separate Shipping Zones. The shipping zone calculation is on ZIP codes. It is from a package point of origin to its destination. It helps companies calculate package shipping time and shipping costs.

Usually, the calculation of US shipping zones starts from 2 to 8. It varies slightly between shipping carriers. The Zone number is bigger when the destination ZIP code is further from the origin ZIP code. The division of the US Shipping Zones is as

  • Zone 2: within 150 miles of the origin
  • Zone 3: 151-300 miles from origin
  • Zone 4: 301-600 miles from origin
  • Zone 5: 601-1000 miles from origin
  • Zone 6: 1001 – 1400 miles from origin
  • Zone 7: 1401 – 1800 miles from origin
  • Zone 8: 1801+ mile radius from the origin

FedEx and UPS have their Shipping Zone numbers for different services. Moreover, the package weight across the Shipping Zones influences the shipping costs. For example, FedEx First Overnight service for a five-pound package in Zone 2 amounts to $82.45. On the other hand, in Zone 4, for the same services and package weight, the charges increase to $142.05.

UPS numbers Shipping Zones for internal purposes. For instance, UPS Next Day Air Early service numbers its Shipping Zones as Zone 102 to Zone 108. Another service, UPS 2nd Day Air A.M., numbers its Shipping Zones from Zone 242 to Zone 248.

Shipping calculator tools are available on the websites of many shipping carriers. It helps businesses estimate their shipping costs. FedEx has a particular site for calculating shipping rates based on origin and destination ZIP codes in the US. On the other hand, it is different for UPS as it allows the user to enter the first three digits of a ZIP code and then sends a corresponding Excel sheet for calculations.

UPS Shipping Zones

UPS Shipping Zones vary for US domestic shipping and to other countries like Canada and Mexico. The shipping rate calculation also varies based on the package weights and services.

UPS has a service guide that supplies complex information. Experts in this field can understand its rules and fees. Audintel provides simplified information to shippers.By leveraging our knowledge of UPS Shipping Zones, we offer several cost-effective strategies to businesses.

UPS Shipping Zones change

UPS announced recently that the US shipping zones will change for some origin/destination ZIP code pairs from March 24, 2025. Some experts believe that these changes will affect shipping costs. However, Audintel has a different outlook towards these statements.

Our Analysis of the UPS Shipping Zone Change

We have analyzed the “ZIP code pairs/combinations” of UPS based on the March update. The changes are for some ZIP code combinations. Our analysis shows:

  • Previously, UPS had 365,000 ZIP combinations. Now, it has increased to 1,164,000. These values indicate that UPS has fine-tuned its delivery commitments.
  • Out of the 1.1 million ZIP combinations, about 54,854 sets of ZIP combinations are different. Further, 30% of these changes resulted in higher zones. But, 70% of these changes saw a decrease in Shipping Zones.
  • Packages shipped to densely populated cities in areas like New Jersey were affected.
  • Shipping packages to remote locations will be costly for businesses.
  • A higher density of packages to cities will cost less with the lowering of the shipping zones.

The outcome of Audintel’s analysis

Analysis of shipping data will help reduce shipping costs for businesses. Shipping rate changes announced by carriers need thorough scrutiny. It will help shippers make well-informed decisions. Audintel has software tools that provide shippers with data visibility. We also alert shippers regarding new surcharges introduced by shipping carriers.

UPS announced changes in new rates

UPS announced a few surcharge updates and new fees affecting shipping costs. These changes include:

  • UPS Fuel surcharge

UPS Fuel surcharges are subject to change weekly. However, from March 10, 2025, UPS has adjusted fuel surcharges for UPS Ground Domestic and UPS SurePost® services. The increase in fees is 0.5%. A fuel surcharge applied to each package can increase shipping costs. Consolidation of shipments to reduce the shipping frequency will save money.

  • Paper Commercial Invoice Services Surcharge

UPS has imposed a $10 fee for each shipment to the shipper. It is for not providing digital commercial invoices using UPS Paperless® Invoice services before UPS processing. This surcharge came into effect from March 17, 2025.

  • Check Fee and Wire Fee

For every payment done by check or wire transfer, UPS is levying a $25 fee. The fee is applicable on or after March 31, 2025. It is not for Automated Clearing House (ACH) payments.

  • Print Invoice Fee

Each shipper or payor has to pay $5 for a paper-printed UPS invoice copy from March this year.

  • Late Payment Fee

This fee will increase from 8% to 9.9% of the balance of the prior dues. It also includes previous late fees.

Companies can adopt digital payment solutions to avoid the latter three fees. Payment by ACH is encouraged as it will not attract additional charges.

Wrapping up

Free shipping helps businesses get new customers, but free return shipping has challenges. Thus, companies must optimize logistics and use carrier discounts to reduce expenses. Shippers need awareness of carrier fees, which can lower shipping costs. Shipping carriers like UPS announce updates to their customers about the changes in fees and surcharges. In addition, businesses have to face UPS off-cycle changes in their shipping zones and fees. Thus, it is vital that shippers review their carrier contracts and pricing regularly.

Audintel aids shippers in analyzing carrier contracts regularly. Our team members have worked for leading shipping carriers, so they know the intricacies of contract negotiations. Our carrier pricing data analytics can navigate the complexities of UPS Shipping Zones. We calculate shipping costs for businesses based on the complex carrier rates.

To learn more about how UPS Shipping  Zones will affect costs, contact us at
 +1 (619) 354 8539. In addition, visit our Audintel website for information about our AI-enabled audit services, that can be customized to your business needs.

Secure Refunds for late deliveries

How to receive refunds for late deliveries: ask Audintel

by BlogBusiness Intelligence

Same-day and next-day deliveries are the accepted norm among online shoppers. Further, consumers expect multiple orders for a single delivery. Customers (46%) abandon shopping carts for long delivery times. As the demand for faster deliveries rises, businesses change to meet consumer expectations.

There are many instances when packages arrive late. It causes consumer dissatisfaction, loss in revenue, and damages brand reputation. Businesses can avoid late package deliveries by improving order processing procedures and choosing reliable shipping carriers. Moreover, did you know that as a shipper, you can request refunds for late deliveries from shipping carriers? Shippers can save money from shipping refunds and billing errors.  

Our earlier articles shed light on refunds for late deliveries. Here, we will examine the reasons for late package deliveries and shipping refund solutions. In addition, we will explore the role of Audintel in securing refunds for late deliveries.

Reasons for late delivery of packages

Many reasons cause a delay in delivering packages. The most common reasons include:

  • Inaccurate contact information: Incorrect addresses and contact details lead to failed delivery attempts.
  • Delays in customs: Due to unavoidable circumstances, international parcel shipping is put on hold at customs.
  • Weather disturbances: Natural disasters like tornadoes, hurricanes, wildfires, etc. can cause deviations in delivery routes, hence shipment delays.
  • Global supply chain disruptions: Wars, congested ports, pandemics, pirates, etc. disrupt supply chains globally, thus causing shipping delays.
  • Holidays: Some shipping carriers do not work on federal or national holidays, causing shipment delays.
  • Damaged labels and boxes: Easily damaged paper labels and incomplete addresses on shipping labels cause shipment delays. Further, damaged boxes will need repacking, resulting in late deliveries.

How can shippers avoid delayed shipments?

Shippers can avoid shipping delays by

  • verifying delivery address before shipping
  • using weather-resistant labels
  • providing customers with tracking numbers
  • distributing inventory across multiple fulfillment centers
  • partnering with various shipping carriers and
  • investing in advanced technology for real-time data connectivity

Further, companies can make agreements with shipping carriers that guarantee on-time parcel deliveries. They will offer delivery delay compensation or provide refunds for delayed packages.

Shipping Refund Solutions

Shippers are entitled to refunds if a shipping carrier delivers a package even a minute late. However, shippers are clueless about this chief point, and most refunds remain unclaimed. Companies find the claim refund process time-consuming and complicated. So, they lose out on claiming refunds from shipping carriers within the cut-off time. Shipping refund solutions offered by organizations like Audintel help shippers claim refunds seamlessly.

Shipping carriers like FedEx, UPS, DHL, etc., provide refunds for late deliveries. They give refunds for selected shipping services. Companies shipping huge volumes find it hard to track refunds for some shipments. Choosing a shipping refund solution provider like Audintel helps businesses save money.

Shipping Carriers provide refunds for late package deliveries

During contract negotiations, shipping carriers like FedEx and UPS have guarantees for on-time package deliveries. In case of delayed shipments, they agree to refund the shippers. Every shipping carrier has different terms and conditions for processing refunds. The refund process also varies. Let us look at the refund policies and procedures of major shipping carriers.

FedEx Money-Back Guarantee

FedEx refunds shippers for late package deliveries. FedEx Money-Back Guarantee is their refund policy. It is for select services only. FedEx Overnight® services, FedEx International Priority® services, and FedEx 2Day® A.M. service are eligible for the money-back guarantee. FedEx extends the delivery commitment time by 90 minutes during the holiday season. Please check our blog to learn more about FedEx Money-Back Guarantee.

A request for a late delivery refund is within fifteen days from the invoice date. But, the challenge remains to filter out all the late package deliveries and ask for refunds. Audintel has superior audit software that can request refunds and save money.

UPS Guaranteed Service Refund

The UPS refund policy is the UPS Guaranteed Service Refund (GSR). UPS GSR is active for selected domestic services such as UPS Next Day Air® and UPS 2 Day Air A.M.® Shippers can also claim refunds for UPS International services like UPS Worldwide Express. Requesting and claiming refunds from UPS is time-consuming and complex. It is ideal to partner with experts to receive refunds promptly.

Check out our article on the benefits of partnering with Audintel and to learn more about UPS GSR.

DHL Money Back Guarantee

DHL provides refunds to shippers for transportation costs. It applies to services such as DHL EXPRESS 9:00, DHL IMPORT EXPRESS 9:00, DHL EXPRESS 10:30, DHL IMPORT EXPRESS 10:30, DHL EXPRESS 12:00, and DHL IMPORT EXPRESS 12:00. Shippers can claim refunds for late deliveries by telephone or writing to DHL. It should be within fourteen calendar days from the date of shipment. Further, companies have to produce the waybill number, shipment date, account number, if applicable, and customer information. Shippers save money and time by requesting refunds by partnering with Audintel.

USPS Refunds

Items in the USPS Priority Mail Express® service are eligible for a refund when packages are not delivered by guaranteed date and time.  Shippers can claim refunds within 2 to 30 days after the mailing date, with no extra services. Further, USPS refunds shippers by money order or cash. Monitoring delayed shipments and requesting refunds for each shipment takes time. Experts such as Audintel can identify late deliveries and request refunds instantly. For further details on USPS refunds, check this page.

Late delivery refunds are applicable for U.S.-based payers. The money-back guarantee does not include fuel surcharges, taxes, duties, accessorial charges, fines, returned shipment charges, and more. Furthermore, the money-back guarantee policy does not cover hazardous goods or force majeure.

Audintel Shipping Refund Solutions

Claiming refunds for late shipments and receiving them on time is not easy. Audintel specializes in cost-saving opportunities for shippers with state-of-the-art shipping refund solutions. We track late deliveries for our clients and claim refunds from shipping carriers. Our software and AI-based tools conduct complete audits and claim filing processes for major shipping carriers. Our SaaS Business Intelligence portal provides greater visibility of all shipping operations. Shippers get an overview of the carrier’s performance and can make informed decisions.

We can identify and follow up with shipping carriers regarding delayed shipments. Our Transportation Spend Management (TSM) solutions can identify carrier service failures and request refunds for service failures. Audintel has a team of professionally trained call center staff that can negotiate claims with shipping carriers. Shippers can save up to 30% more in Refund credits with our services. We help improve the relationship between shippers and shipping carriers. Our clients benefit immensely with better service quality and discounts on services.

The bottom line

Customers do not tolerate late delivery of goods. Companies suffer revenue loss and no return business due to delayed shipments. Further, shippers can save money by claiming refunds for late deliveries on time. Experts like Audintel can help companies understand refund policies and processes.

Audintel provides real-time monitoring and tracking of shipments with its automated tools.

We audit each shipment for potential refund claims and quickly aim to secure refunds for late deliveries. Our team of experts has years of experience handling refunds from shipping carriers. Our cloud-based tools help shippers meet customer delivery expectations. Shippers can seamlessly secure refunds for late deliveries with Audintel.

Do you need refunds for late deliveries? Audintel refund services are there for you. For further details and information on Audintel refund solutions, contact us at +1 (619) 354 8539. In addition, learn about our customized audit services at the Audintel website.

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Shipping Reports: Analyze shipping expenses with ease

by BlogBusiness Intelligence

Despite the global turmoil, consumer spending has not waned. E-commerce businesses are rising as fewer people are visiting physical stores. According to experts, the e-commerce market will be over $7.9 trillion by 2027. Many customers (70%) expect free shipping from e-commerce retailers. These retailers adopt shipping strategies to entice consumers to shop more to qualify for free shipping. Further, companies need to grow their business by evaluating the amount spent on shipping.

Shipping software with advanced technology tools gives businesses greater visibility and control over their shipping operations. AI and Machine learning help evaluate business spending data and analyze shipping expenses. Shipping reports provide such information to organizations. Our earlier blogs on shipping reports were on the importance and types of shipping reports. This article will focus on shipping reports and how to track and analyze shipping spend.

Shipping Reports

These are reports that provide shipping information to shippers. They ensure that companies have the latest shipping data. Shipping reports will bring efficiency to shippers’ transportation spend management systems. Companies have vast volumes of data. Shipping reports can filter that data by date, service levels, quantity of goods, etc.

Many shippers have customized shipping reports that cater to their business needs. It helps them make informed decisions regarding the type of shipping carriers to choose.  In addition, payments to shipping carriers and refunds for service failures are visible in the shipping reports.

Track Shipping Spend

Tracking last-mile delivery of goods is necessary for every shipping software. Shippers can choose the service levels of the shipping carriers based on the items shipped, delivery speed, and cost-effectiveness. Shipping rates can be calculated based on the shipping zones of carriers like FedEx, UPS, DHL, and USPS. Further, the weight of packages, dimensions, and delivery time can estimate the shipping costs.

Additional expenses like remote area surcharges, fuel surcharges, and address correction fees need tracking during shipment deliveries. Every shipping carrier has different additional fees for shipment-related surcharges. Understanding these shipment surcharges will help track the shipping spend. Automated tracking tools can track shipments quickly  and save time. Reporting inefficiencies and invoice errors allows companies to keep a check on their shipping expenses.

Shipping Spend Analysis

Spend analysis examines the data involving shipping expenses. Spend data is collected from various sources and consolidated. Further, data inaccuracies and redundancies require removal to get accurate data. Standardizing the shipping spend data and classifying it into diverse groups is the next stage of spend analysis. Shipping reports help in categorizing the spend data for effective transportation spend management.

Organizations can identify trends and saving opportunities by visualizing data as bars, charts, pie diagrams, etc. Further, dashboards give a broad overview of the shipping spend performance. For example, it highlights the invoices with discrepancies. It will also show the areas where refunds from the shipping carriers are available.

Artificial Intelligence (AI) and Machine Learning (ML) tools with predictive analytics allow organizations to study their historical spending patterns. Moreover, these tools can predict future spending patterns and supply risks and identify market trends. Companies can optimize inventory levels and reduce shipping costs by analyzing data from customers and distributors. Further automated tools decrease manual labor and expedite processes in warehouses and fulfillment centers.

Real-time shipment updates with AI-powered tools provide shippers peace of mind and enhance supply chain operations. In addition, AI-powered chatbots improve customer experience and free up agents for complex issues. Spend analytics provides visibility in managing expenses at every stage of the shipment process.

Parcel Spend Analysis

Evaluation of the amount spent on shipping parcels is possible through spend analytics. Parcel audit services provide insights into each parcel shipped, its charges, and service levels. For example, the fees for parcel delivery overnight by FedEx and UPS vary. Understanding the cheaper and faster mode of parcel delivery helps shippers save money.

Shippers can negotiate favorable rates and services from parcel carriers. Further, one can streamline the processes through consolidated shipping and optimizing packaging. Shipping reports generate data that can identify errors and provide solutions to shippers.

Freight Spend Analysis

Companies receive ample cost-saving opportunities with freight spend analysis. It involves an examination of freight invoices in a specific time frame. Shippers can spot hidden costs and overpayments by looking at features such as freight class, routes, modes, etc. For instance, freight data regarding the cheaper shipping lane can reduce costs and transit times.

Further, shippers can comprehend their shipping logistics costs with spend analytics. Information regarding trucking spot freight rates, bill of lading, customs, etc., is possible with descriptive analytics. Shipping reports generate meaningful data that are easy to understand and implement.

Transportation Spend Reporting by Audintel

Our Business Intelligence (BI) powered tools analyze shipping spend data and give valuable insights to shippers. Audintel’s cloud-based platform provides a 360-degree real-time overview of the shipping spend data. We provide customizable shipping reports for our clients with details at the item level. Audintel aids in reporting on transportation expenses.

Shippers get many benefits from choosing our Transportation Spend Management resources. Our shipping reports help businesses understand their shipping spend. The shipping data of each package contains in-depth information. We also offer shipping calculator services to clients. For example, we calculate the best possible rates for each package based on weight, size, or dimensions.

What do shipping reports of Audintel contain?

The shipping reports of Audintel include

  • Summary of all the package charges for a specific service
  • Total expenses and refunds for each package
  • Shipping charges by service level and discounts
  • All the services used by shippers at a glance
  • Consolidated report regarding payments to shipping carriers
  • Details of credits from the shipping carriers
  • Tracks late-delivered packages
  • Details of lost and damaged packages
  • Surcharges incurred on each package (for example, Saturday delivery)
  • Details of the exception packages and reasons for each packages
  • Reports that displays the GL codes available for each invoices and respective charges
  • Details of the Address correction packages.
  • Reports that displays the spend and recovery along with the percentage for yearly, quarterly and monthly date ranges.
  • Week over week(WoW) or Month over month (MoM) performance trends reports.

Shipping reports provided by Audintel provide better visibility about shipping costs and processes. Our intelligent, intuitive dashboards monitors carrier performance and provides comprehensive reports. It allows shippers to have meaningful discussions with shipping carriers regarding delivery timeframes.

Further, Audintel’s parcel and freight audit services can identify service failures, duplicate invoices, incorrect surcharges, etc. We help customers recognize the complexities of shipping rates and surcharges of each shipping carrier. It helps them choose the best ways to ship their goods economically.

Conclusion

The global freight market is facing many challenges. The world shipping industry is evolving at a fast pace. With the approaching holiday season, companies with vast shipping volumes need to reduce their shipping expenses In addition, customer satisfaction with on-time delivery of packages is critical for shippers. Partnering with shipping intelligence experts can help shippers lower their shipping costs.

Audintel’s robust intelligence tools can track, analyze, and reduce shipping expenses. Our comprehensive shipping reports give an overview of each company’s shipping operations. The shipping reports contain the shipping spend and delivery data. It could be late package deliveries, shipping rate calculations, or improper surcharges. Businesses have all the shipping information at their fingertips.

Further, shippers can track their shipping spend for a particular timeframe with one click. Companies can gauge the performance of a shipping carrier when shipping their goods. And so they can choose the best carrier for their shipping needs. Our shipping reports are easy to understand and self-explanatory. We help shippers save money with our intelligent software and customized transportation spend reports.

For more information on our shipping reports, contact us at +1 (619) 354 8539. Further, learn more about our comprehensive audit services by visiting the Audintel website.

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Reduce shipping costs of small parcel shipments seamlessly

by BlogTSM Services

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

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

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

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

Factors affecting shipping costs

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

The main factors affecting shipping costs include

  • Delivery speed and service

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

  • Weight and dimension of packages

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

  • Shipping distance

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

  • Surcharges

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

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

Five ways to reduce shipping costs

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

  • Using advanced tracking software tools

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

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

  • Management of shipping rates

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

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

  • Negotiating with small parcel carriers for the best shipping prices

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

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

  • Inform shippers of the importance of shipping audits.

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

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

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

  • Streamlining the shipping process

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

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

How Audintel services reduce shipping costs

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

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

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

The bottom line

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

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Receive refunds quickly with Small Parcel Audit Services

by BlogSpend Management

The US e-commerce parcel delivery market reportedly will grow to USD 160.07 billion by 2032. There is increasing demand for speedy delivery services from small parcel delivery companies. For example, the United States Postal Service (USPS) small parcel delivery is economical, especially for last-mile deliveries. However, it has recently faced international shipping disruptions in many countries due to conflicts, winter weather, and local delivery issues. 

So, what if the small parcels arrive late? What do you do if there are shipping invoice errors? Who do you turn to when faced with late deliveries of packages? We hope it is your small parcel audit service provider. If not, you face the uphill task of asking for refunds from small parcel delivery companies.

This article deals with the small parcel audit services and audit points provided by Audintel. Further, we also mention how the small parcel audits recover refunds for clients.

Small parcel audit services

Small parcel auditing services help businesses overcome manual, time-consuming refund claims. The monitoring and tracking of a parcel shipment by each shipper is possible with automatic parcel auditing software. Shippers receive refunds from small parcel delivery companies for inaccurate fees, late deliveries, etc. In addition, small parcel audit services help recover money for their clients by identifying shipping mistakes.

Small parcel auditors provide options for switching small parcel carriers to shippers. Businesses can benefit by choosing a fast, cost-effective small parcel delivery company. Shippers can choose small parcel carriers that are affordable and don’t have hidden charges. The small parcel delivery companies include major players like UPS, FedEx, and USPS. DHL Express, Sendle, OnTrac, etc., are the other small parcel delivery companies.

Small parcel audits review billing inaccuracies, overcharges, and service failures by small parcel carriers. Further, they help to keep shipping costs under control and optimize shipping spend.

Types of Small Parcel Audits

The types of small parcel audits include manual audits, parcel audit software, and parcel audit services.

Manual audits are time-consuming and laborious, requiring employees to examine each invoice by hand.

Parcel audit software automates the manual auditing process. However,  training and optimum use of the software are essential to get positive results.

Parcel audit services are outsourcing of small parcel audits. It avoids the hassle of learning parcel audit software by companies. It provides shipping strategies and ways to obtain refunds from small parcel carriers.

Small Parcel Audit services: audit points identified by Audintel

In this section, we explore the different audit points that impact businesses. In addition, these audits help in getting refunds from small parcel carriers. Audintel identifies various audit points that need periodic checks. These audit points are categorized further into three types of audits.

1. Service Audits

These audits are for deficiencies in services provided by the shipping carriers. The below audit points target the service deficiencies of small parcel carriers:

  • Late Delivery Ground
  • Late Delivery Air
  • Late Delivery International

Shippers receive refunds for late deliveries by small parcel carriers by ground or air. It can be for domestic or international shipments. Small parcel auditing services inform shippers about the delays in package deliveries.

  • Voids

Small parcel carriers generate labels for all packages. Sometimes, these packages may not be shipped. However, the shippers eventually pay for the non-deliveries. Audintel tracks such non-delivery shipments for refunds.

  • Duplicate Invoices

Small parcel delivery companies generate invoices twice for the same shipment. Audintel identifies the duplicate invoices and requests refunds from them.

  • Duplicate Tracking Number

Parcel carriers give duplicate tracking numbers by mistake. Audintel monitors duplicate tracking numbers.

  • Lost Claims

Audintel makes claims for refunds to the small parcel carriers for lost packages.

  • Damage Claims

Packages damaged during transit are subject to claims. On behalf of the client, Audintel claims declared value or insurance for the damaged packages.

  • Saturday Pick-Up and Delivery Validation

Small parcel carriers pick up packages on Saturday. They charge extra for Saturday pick-ups and deliveries. Audintel validates such shipments. If there are mistakes made, we claim refunds for clients.

2. Invoice Audits

Invoice errors are a part of small parcel audit services. Here are some audit points that monitor inaccurate invoices:

  • Incorrect Rate

Small parcel carriers publish shipping rates every year. During carrier contract negotiations, both parties decide the charges for each package shipped. However, the small parcel carriers may bill excess to the negotiated rate. It leads to billing with inaccurate rates. Audintel audits the shipping rates levied by the shipping carriers and requests refunds where necessary.

  • Incorrect Discount

During contract negotiations, shippers and small parcel shipping carriers decide on discounts based on the shipping needs. Audintel identifies errors in providing the correct discounts by small parcel carriers, leading to refunds.

  • Incorrect Accessorial

Audintel requests refunds for shippers if accessorial fees, like fuel surcharges, are incorrect.

  • Commercial/Residential Adjustments

Small parcel carriers may charge small parcel delivery to commercial establishments at residential location prices. So, small parcel audit services by Audintel recognize the mistakes made by shipping carriers and request refunds.

  • Address Corrections Air or Ground

Packages requiring air or ground shipping do not necessarily need address corrections. However, Audintel requests refunds when shippers face wrong charges for address corrections.

  • Delivery Area Surcharge (DAS)

Shipping carriers charge businesses a surcharge if the delivery area of the small parcel is in a remote location. Audintel requests refunds when the DAS is inaccurate.

  • Hundredweight Shipments

Small parcel carriers provide discounts for multiple shipments going to one location. Audintel advises opting for alternative suggestions by small parcel carriers to save money.

  • DAS Extended

Small parcel carriers may charge extra for shipments with delivery areas beyond the remote locations. Audintel verifies whether the small parcel shipment is in the delivery area beyond the distant location. It requests refunds for discrepancies.

  • DAS Rural

This surcharge is for rural areas. Small parcel auditors verify the surcharge for accuracy.

  • Contract Negotiations

During carrier contract negotiations with the small parcel carriers, there are discussions on shipping rates and other surcharges. Audintel has an expert team to help shippers in carrier contract negotiations.

  • International Import and Export

Small parcel delivery internationally attracts duties and taxes. Audintel audits the shipments to ensure shippers do not pay extra taxes.

  • Incorrectly Billed Collect Shipments

Audintel checks if the shipments paid by third parties are correct.

  • Weight Accuracy

Small parcel audit services help shippers pay the exact amount for parcel weights. For example, a package that weighs 10 pounds may be charged incorrectly as a 15-pound package.

  • Additional Handling Charges

The Audintel team audits the shipments to verify if the shippers pay extra for handling packages.

  • Fuel Surcharge

Audintel verifies the validity of the fuel surcharge.

  • Hazmat Materials

Packages with hazardous materials have higher prices. Audintel audits the shipping invoices for the correct calculation of the shipment.

3. Compliance Audits

Audits conducted by third parties are compliance audits. It is to check if the shippers and small parcel carriers are following the negotiated terms of the contract agreement. The following audit points are integral to the compliance audits:

  • Contract Rate and Tier Audits

Audintel helps shippers with their contract agreements with small parcel carriers to get the best deal. We have expert negotiators who have in-depth knowledge of carrier contracts.

  • Contract Negotiations

Our negotiating team ensures that the shippers’ contract agreements with parcel carriers are correct and there are no discrepancies.

  • Invalid Account Number Usage

Small parcel auditors identify packages having invalid account numbers.

  • Incorrect billed 3rd Party Shipments using the client account number.

Audintel identifies incorrect third-party account numbers that do not exist. It notifies shipping carriers of incorrect billing of third-party shipments.

  • Special Contract Consideration

Audintel notifies shippers of any mistakes made in the contract negotiations.

Small parcel audit services by Audintel: refunds and savings.

Audintel requests refunds from small parcel carriers for mistakes made by them. We ensure our clients receive money in the accounts from  FedEx, UPS, and other small parcel carriers. As a small parcel auditor, Audintel ensures that its services do not end with just providing software solutions. We also ensure refunds for our customers. We help our clients save money by negotiating discounts with shipping carriers.

Final Remarks

Small parcel audit services help businesses request refunds for mistakes of small parcel carriers. Several eligible refunds are unclaimed by shippers. With the help of small parcel audit services, companies can claim refunds and save money. Audintel experts help shippers cut shipping costs with data insights. We help shippers choose the small parcel delivery company that serves their business needs.  Reach out to us for a demo and benefit from our state-of-the-art services. Contact us at +1 (619) 354 8539 or visit our Audintel website to know more about us.

Small parcel audit to improve bottom line

Small parcel audit: necessary to improve your bottom line

by BlogSpend Intelligence

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.

Summary

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.

For further queries on small parcel audits, please call Audintel at +1 (619) 354 8539 or drop a mail at [email protected].

Comprehensive_shipping_reports

Shipping Reports: Parcel shipping analytics in a nutshell

by BlogSpend Intelligence

The rise in the e-commerce market has revolutionized the parcel delivery industry. Some reports have predicted an increase in the parcel delivery market. With digitalization, the delivery sector has undergone many technological advancements. As customer expectations rise, businesses focus on technology. New technologies enhance operational efficiency.

Innovations and AI are powering the logistics ecosystem. Businesses use wireless devices and IoT systems to track shipments in real time. It ensures the safe movement of goods and triggers alerts when errors arise. Some logistic companies have also used drones for their last-mile delivery of goods. Using drones in the future will cut shipping costs and speed up delivery time.

Shipping data allows logistic companies to optimize their shipping operations. Towards this end, shipping analytics tools gather and analyze data to identify mistakes. Further, shipping reports provide insights into parcel spend management. We have covered reducing shipping costs with shipping reports on this blog before.

This article gives an overview of parcel shipping analytics and the necessity of shipping reports.

Parcel shipping analytics

Shippers face the challenge of cost-effective and fast delivery of packages to satisfy customers. In addition, they have to deal with supply chain challenges that increase delivery time and costs. Parcel shipping analytics involves data analysis. Data analytics can identify patterns related to shipment delivery on time and other shipping metrics. It gives business intelligence tools to companies for streamlining their processes. Further, shipping analytics tools provide intelligent shipping reports to help in business growth.

Features of shipping analytics

Shipping analytics tools sift through data relevant to improving business finances. The features of shipping analytics include:

Data normalization

It is the process of eliminating inconsistencies in data and reorganizing data in a database. Data standardization occurs across the entire system. Shippers can run quicker queries through the massive data collection during shipping with data normalization. The chances of data duplication and errors decrease, thus unlocking business potential.

Forecasting

Businesses get insights into future supply and demand patterns with forecasting and predictive analytics. It helps shippers to plan inventories, manage warehouses, schedule shipments, and order fulfillment. Further, it aids businesses to understand customer demand, purchase behavior, and preferences.

Route optimization

Technology simplifies shipment route optimization. Artificial intelligence (AI) and machine learning can optimize routes with data from trackers on vehicles, real-time traffic updates, weather reports, etc. Moreover, data from different sources allows shippers to deliver time-sensitive goods, update the route in real-time, and improve customer experience.

Predicting shipping locations and time

Predictive analytics gives shippers and customers the shipping time estimation of goods. The companies and customers will know when and where the shipped goods will arrive. The information helps shipping carriers plan their routes and the ports for offloading the goods.

Shipping analytics tools help analyze data and generate shipping reports.

Shipping reports

Parcel or freight shipping analytics information is present in easy-to-understand shipping reports. Businesses can analyze their shipment performance with user-friendly shipping reports. Searching, sorting, and selecting the criteria in each shipment in detail helps shippers.

Multiple shipping reports can narrow the data to a particular time or date. For instance, companies can filter shipping reports by date, service level, carrier, customer, and more. Customized shipping reports help shippers monitor shipping rates and carrier performance.

The calculation of shipping costs is possible with the help of the shipping reports. For example, fees will vary for delivering goods to Zone 2 from that of Zone 8. Shippers can opt for 3PL for last-mile delivery of goods.

Shipping reports provide real-time shipping information that assesses painful points for better operational excellence. They also contain outbound or inbound goods in transit or delivered to the customer. Further, they provide information on old pending bills and time-sensitive shipments. Shipping reports are created based on a company’s needs. Shippers may require personalized reports for quick reference.

Our previous blogs gave insights into the shipping reports offered by Audintel. We also have highlighted four critical shipping reports aiding spend management.

Importance of Carrier Performance Analysis

Shipping reports also help businesses in choosing shipping carriers based on their performance. Shipping analytics tools do a carrier performance analysis. Important factors help assess various shipping carriers’ performance. One of the factors includes ranking shipping carriers on their on-time performance and invoice accuracy.

Further, shippers will get information about the actual cost in the invoices rather than the planned cost. Companies use alternate shipping carriers if the shipping carrier rates affect their profit margins. It will allow businesses to choose the shipping carriers best suited to their needs..

How to analyze real-time shipping performance data

Shippers can monitor and track real-time shipping performance data with data analysis. Intelligent solutions can analyze the shipping data to save money. Factors like order accuracy, inventory tracking (including returns), delivery time, etc., are shipping performance indicators. Better visibility of real-time data gives businesses a clear overview of missed or late deliveries, thus enabling them to take action. In addition, shippers can ensure that the shipping carriers are sticking to their carrier contract agreements.

Shipment automation for optimization

Shipment automation helps in the optimization of business operations. Automating shipping processes can reduce the risk caused by manual processing. Further, it can minimize the costs for re-shipments or returns. Customized cloud-based applications can help businesses track and manage shipments. Automated processes in the supply chain can reduce lead times, optimize inventory control, and improve customer services. Automation can process orders quickly and ensure faster delivery to customers.

Shipping analytics gives insights into supply chain management. Shippers improve their customer experience by understanding historical performance accessible in one place. AI tools can reduce the risk of overstocking while managing inventory levels. It can lead to faster processing time and lessen delays in the supply chain. Shipping reports provide  insights to improve the performance of shipping operations.

Audintel: Experts in shipping analytics

A cloud-managed Transportation Management System (TMS) is essential for automating shipping operations. Audintel provides advanced TMS services to its clients. Our consulting and technology services help optimize routing networks and reduce transportation costs. We help shippers manage carrier contract negotiations to get the best deals.

Audintel provides comprehensive reporting solutions to its clients. Our shipping reports give easy access to shipping data for businesses. Shippers can improve their operational efficiency and reduce shipping spend considerably. In addition, shipping reports are user-friendly and provide cost-effective shipping solutions. We also give customizable shipping reports to our clients to help their businesses thrive. Further, our intuitive dashboards give data, thus allowing our clients to make informed decisions.

Concluding remarks

Leveraging shipping data is transforming the supply chains of many companies. Effective use of data can help bring vast profits to businesses. Shipping reports provide a comprehensive overview of shipping data to shippers. It gives visual insights into your shipping profile and the carrier’s daily delivery performance. Further, shipping reports provide details of your orders by volume, service levels, delivery time, and more. Automation helps businesses streamline their shipping processes.

Audintel has the expertise to help businesses streamline their shipping processes. We will help you understand the complexities of shipping data through your easy-to-use shipping reports. For a free demo and other consultations, contact us at +1 (619) 354 8539 or visit our Audintel website.

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.