why

Why incorporating GSR/MBG waiver in shipping contracts is a bad idea?

by BlogCost Optimization

On-time delivery of shipments is vital for shippers. Late parcel deliveries test a customer’s patience. At times, customer dissatisfaction leads to financial loss. With this in mind, shippers have a refund clause in their shipping contracts with the shipping carriers. Shipping carriers promise a refund for service failures such as late deliveries.

Approved late delivery refund requests save 100% shipping costs. But, in the past few years, FedEx and UPS are offering shipping refund waivers with incentives. Large shipping carriers are aggressively vouching for refund waivers. So, what are these shipping refund waivers? And, why should shippers not accept such Guaranteed Service Refund waivers? Read on for all this and more, in this article.

What are shipping refund waivers?

Shipping carriers like FedEx and UPS offer shipping refund waivers. Shipping refund waivers are clauses within the shipping contracts that provide discounts to shippers. These discounts are in return for waiving off the shippers’ rights to claim refunds. FedEx’s refund waiver is known as Money-Back Guarantee (MBG) waiver. And UPS’ refund waiver is known as UPS’ Guaranteed Service Refund (GSR) waiver. In addition, UPS and FedEx aggressively market these waivers to shippers for earning extra revenue.

Incentives in exchange for GSR waiver

Often shipping carriers offer discounts and incentives in exchange for signing an agreement with Guaranteed Service Refund waiver.  Shipping carriers who want GSR waivers entice shippers with attractive discounts during contract negotiations. The incentives include an additional package rate discount and small discounts in the accessorial charges for a short period. But, shippers generally don’t benefit much from these incentives, as there are other charges on the package.

Why should shippers not sign an agreement with UPS’ GSR or FedEx’s MBG waivers?

UPS’ GSR ensures the on-time delivery of all Ground and Express Packages.  When shippers sign GSR waivers, shipping carriers can no longer be held accountable for late deliveries. For instance, a parcel’s delivery time is the same day, but the delivery occurs the next day. The customer will hold the shipper responsible for the delay and not the shipping carrier. The shippers cannot demand a refund from shipping carriers on signing a GSR waiver. As a consequence, shippers face loss of revenue and customer dissatisfaction. That is why Audintel strongly suggests that shippers should not sign agreements with UPS’ GSR or FedEx’s MBG waivers.

Disadvantages of accepting shipping refund waivers

The disadvantages of accepting MBG waivers include lost customers, an increase in returned shipments, etc. Packages that are delivered late are a chief reason for shippers losing customers. Minimum service charges on each parcel eat away any discounts received on account of the GSR waiver. FedEx may offer an additional package rate discount with an MBG waiver. But, when FedEx applies minimum service package charges, these additional discounts will be negligible and lead to revenue loss. According to recent studies, waiving away MBG rights will cost shippers 1-5% of their entire parcel spend.

How can Audintel help?

Audintel has a well-experienced team of experts who are well-versed in contract negotiations. We compare the services of the shipping carriers before signing a contract. Audintel studies the fine print of each shipping contract with shipping carriers. We will help in getting you discounts while keeping the Guaranteed Service Refund clause intact. We ensure that our clients save more by not signing an agreement with a GSR waiver.

Services offered by Audintel concerning GSR Waiver

Audintel will never suggest a GSR waiver for its clients. We believe the credibility of the client will be affected by accepting the GSR waiver. When a GSR waiver is signed, shippers cannot question the shipping carriers for late deliveries. Shippers’ business gets affected due to delays in parcel deliveries. Shippers are in safe hands when they trust Audintel to manage their shipping portfolios. We not only track each parcel for late deliveries but also request for GSR. Our services help our clients receive the refund amount due to them. As well as enhance customer satisfaction bringing in more business for our clients.  Audintel holds the shipping carriers responsible for deficiencies in services. We can save at least 2-5% of overall parcel spend for our clients.

Late delivery refunds are essential for the small parcel industry. Late delivery refund claims save money for shipping companies. There is an estimate that over 3 billion dollars from unclaimed refunds are collected by UPS and FedEx when shippers sign GSR waivers. The refund amount belongs to shippers but, the amount remains unclaimed due to lack of auditing and claim processing. Shippers need professionals who can help them in monitoring their shipment portfolios at every stage. Audintel offers comprehensive audit services to clients, focusing on analyzing and optimizing shipping expenses to help you save money. As a trusted name in parcel service auditing and a SOC 2 compliant organization, Audintel ensure that your data is handled with the highest level of security and care. For further details, write to us at [email protected] or please visit our Audintel website, or contact us at +1 (619) 354 8539.

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Under what conditions can companies receive a UPS refund?

by BlogTSM Services

Did you know UPS awards refunds for 50+ service failures? So, the next time UPS loses a parcel or delivers it late-companies can request a refund. UPS promises a refund for service failure. But, the refund is not for all services and destinations.

Shippers have to be aware of the terms and conditions of the UPS refund policy. This article explores the conditions in which companies can receive UPS refunds.

Service failures and errors for which UPS offers refunds

UPS faces many service failures and billing errors. UPS’ service failures are lost packages, invalid service exceptions, late parcels, damaged packages, etc. Shipping carriers make several billing errors. Some of the billing errors include inaccurate discounts, void shipments, incorrect weights, etc. In addition, there are surcharges such as invalid residential surcharges, charges for re-delivery, duplicate charges, etc. UPS offers Guaranteed Service Refunds for these mistakes.

Conditions under which UPS refunds are offered

Ideally, shippers expect refunds from shipping carriers for shipping mistakes. Only after fulfilling its terms and conditions, UPS gives Guaranteed Service Refund (GSR) to shippers. UPS considers a request for a refund from the shippers subject to these conditions. Some of these conditions include:

Appropriate packing and labeling of shipments

UPS does not give refunds for incorrectly labeled packages. Shipments should be labeled appropriately for on-time delivery. Packing has to conform to UPS Automated Shipping System, showing the Consignee’s correct name, delivery address, and ZIP Code.

Shipment recorded in UPS Shipping System

The UPS Shipping System records every shipment and package. UPS guarantees “on-time” delivery of shipments. The delivery schedule is on UPS’ website. The parcel delivery has to be on schedule, or the shippers are eligible for a UPS refund.

Accurate documentation accompanying the shipment

When shipping internationally, shippers need to include documents with the packages. The relevant documents are for customs clearance at the country of origin or in transit. The absence of accurate documentation will lead to delay in shipments.

Saturday delivery routing label to be included on packages, wherever applicable

Shippers have to use the Saturday Delivery label on the package when shipping on a Friday. It is applicable for Next Day Air service by UPS. Else, the package delivery occurs on the next business day, Monday. UPS is not liable for late delivery in such a case. And so, shippers will not get a refund for the same.

Time limit to request for UPS refund

The time limit for claiming a UPS refund is within fifteen days from the date of scheduled delivery. Shippers can claim refunds through UPS’s Interactive Voice Response system or UPS’s online Billing Center. Details like the recipient’s name, address, package weight, tracking number, and shipment date are a part of the request.

No Additional Handling Charges for shipments

Additional Handling charges are for packages that require special handling. Also, additional charges are for parcels that exceed the weight or size limit. Such shipments will not receive a guaranteed service refund from UPS.

In addition, UPS does not offer refunds for events beyond their control (force majeure) or suspension of services.

Audintel -Shipper’s guide in receiving UPS refunds

Understanding the terms and conditions of UPS’ Service Guarantee is tedious. Further, figuring out whether shippers can request a refund is tiresome. As a result, many companies lose money when they face such hassles. In such a situation, parcel audit services such as Audintel guide shipping businesses. The automated audit services of Audintel ensure that shippers receive UPS refunds on time and in their accounts. We audit shippers’ shipping invoices and claim refunds for shippers. Our team works effortlessly in the background and saves money for businesses.

Conclusion

Tracking shipping invoices is vital for shippers. Billing errors will cost shippers dearly in the long run. Companies can save money by claiming UPS refunds for service failures. An automated audit service provides much-needed help to shippers. Audintel is helping many businesses save money. For any service failure by UPS, we help our clients receive refunds.

Do you want more information on UPS refunds?

Reach us at [email protected]. To know more about us and our services, visit the Audintel website or call us at +1 (619) 354 8539.

Get refunds with UPS Guaranteed Service Refund

Get refunds for late deliveries with UPS Guaranteed Service Refund

by BlogTSM Services

Shipping couriers promise on-time parcel delivery. But, did you know that if a UPS package delivery is late, you can ask for a refund? Many business owners don’t realize this because UPS does not advertise this fact due to obvious reasons. This blog will cover the different aspects of UPS refunds and claims. It will also cover the importance of audit companies like Audintel that simplify the refund process.

UPS’ Refund Policy for late deliveries

Shipping carrier UPS promises a refund policy, Guaranteed Service Refund (GSR), for on-time delivery of packages. Their policy guarantees that packages will arrive by a specific date and time. Shippers qualify for a service refund if a parcel does not. For instance, a UPS Next Day Air package delayed by 60 seconds is eligible for a refund by UPS to the shipper. UPS will refund all the shipping charges to the shipper on request. However, there are certain limitations to UPS’ GSR policy.

What are the limitations to UPS’ refund policy?

UPS offers a free money-back guarantee only for certain services. UPS GSR is available for services like UPS Next Day Air® Early, UPS Next Day Air®, UPS Worldwide Saver, and more. Some of the limitations to UPS’ Guaranteed Service Refund (GSR) include:

  • Additional handling fees
  • Fuel surcharges
  • Natural disasters, war risks, acts of God, etc.
  • Adverse weather conditions
  • Insufficient information provided by shippers
  • Hazardous Materials Packages improper for transport
  • Unavailability or refusal of a person to accept the shipment delivery
  • Packages that are exceeding maximum weight or size limits
  • Disruption in communication systems

UPS has listed further limitations under its Terms of Service that you can check on its UPS website.

What is the process to receive UPS Guaranteed Service Refund?

The process to receive UPS GSR is complex. The process involves tracking each shipment with its tracking numbers. Also, there is identification and separation of shipments based on their time of delivery.  Further, there has to be segregation based on the limitations imposed by UPS. Finally, shippers have to request a refund for a package that was delivered late. The completion of the entire process has to be within 15 days from the scheduled delivery date of the shipment. Shippers have to involve additional resources so that shippers get refunds. Audintel helps its customers in receiving refunds from UPS within the stipulated time.

Requirements for receiving UPS Refund

Shippers have to fulfill the following conditions to receive UPS Guaranteed Service Refund. These conditions include:

  1. Shipping documents with the correct shipping labels under UPS guidelines on labeling
  2. Proper documentation accompanying the package from the country of origin or destination
  3. Shipment should not have additional handling requirements
  4. Notification for a request for refund
  5. The parcel has to be tendered to UPS on or before the collection time as specified by UPS
  6. Shippers have to provide Timely Upload information (complete shipment details) to UPS fifteen minutes before the collection time

What are the steps to request a UPS refund?

Shippers can submit a request for a refund for the late delivery of a package. The request/claim to UPS can be in two ways.

  • By Calling 1-800-PICK-UPS ® (1-800-742-5877) and saying the word, refund.

OR

  • Logging on to the UPS Billing Centre and selecting -Request a Refund.

The latter option is for customers with payment accounts. The request/claim should be within 15 days from the scheduled delivery date. Shippers provide the customer’s name and address, date of shipment, parcel weight, and UPS tracking number to receive a refund from UPS. The refunds are usually credited into shippers’ accounts within 7-10 business days after dispute settlement.

UPS refunds and claims made easy by Audintel

There is a need to audit each shipment to manage UPS refunds. Each stage of small parcel shipment is vital for businesses. Audintel provides parcel audits and other essential services to shippers. Automated systems used by Audintel make the refund process simpler. The systems monitor and track each package carefully so that shippers can ask for refunds from UPS. Any invoicing errors, any extra surcharges are part of the claims made to UPS. Audintel helps shippers recover unclaimed refund amounts with ease. Audintel has found that shippers can save as much as 5% of their total spend from UPS’ GSR policy.

To summarize

Who wouldn’t want a refund for unfulfilled services? UPS guarantees a refund for its service failures and shippers are entitled to claim and receive a refund for any lapses. While requesting a refund is a complex process, with Audintel as a partner, claiming refunds for unsatisfactory service from shipping carriers, such as UPS is easy. Audintel ensures that refunds are credited directly into shippers’ accounts. Audintel works tirelessly towards customer satisfaction. Our team of experts is regularly enhancing our customers’ parcel shipping experience. For further details, write to us at [email protected] or please visit our Audintel website, or contact us at +1 (619) 354 8539.

refund

Received a package late? Request for a refund for late deliveries

by BlogTSM Services

In the U.S., Parcel deliveries get delayed by about 3-5% on average. Not to mention, 51% of the customers want a refund if a package arrives late. As a result, shippers face customer complaints that can affect their business in the long run.

Shipping carriers do not make it easy for shipping companies to receive refunds with complex request procedures. To make the refund process more efficient and convenient for customers, shippers need an easy way to get refunds. In this blog, we will explore the process for receiving refunds from shipping carriers and why partnering with Audintel is an advantage for shippers.

The Refund policy of shipping carriers

Different shipping carriers have different refund policies for late parcel deliveries. Shipping carriers promise to deliver packages on time with a refund policy in place for delayed shipments. The refund policy is also known as a money-back guarantee. The policy states that if there is a delay in parcel delivery by a minute or more, the shippers can get a refund on request.

How to receive a refund for late deliveries

To begin with, shippers must identify the delay in parcel delivery. This is an intensive process where the company needs to track each parcel delivery for any delays. Further, refund requests need to be submitted individually for each delayed delivery. Usually, there are two ways of submitting a refund request.

  • Contacting the shipping carrier’s customer service hotline

OR

  • Logging on to the carrier’s online Billing Centre for customers with payment accounts

For different services, shippers have to contact separate customer care numbers.

The time frame for filing a request to a refund for late deliveries

A request for a refund should be within 15 calendar days from the invoice date or from the scheduled delivery date.  A refund request for USPS’ Priority Express Mail has to be within 30 days from the mailing date. Further, a form needs to be filled manually along with document submission.

Documentation to request for a refund for late deliveries

The documents required to request a refund are:

  • Tracking number
  • Scheduled delivery date and time
  • Origin and destination ZIP codes

The refund does not include taxes and fuel surcharges. Shippers have to pursue the matter with the concerned shipping carrier to make sure the refund deposit is in the correct account. The approval of a refund is subject to exceptions made by shipping carriers.

Delivery exceptions posed by shipping carriers

Some of the delivery exceptions are:

  • Shipping carriers providing evidence of timely delivery
  • Weather delays and natural disasters
  • A wrong or damaged shipping label on packages
  • Incomplete addresses
  • Recipient not available at the address
  • Custom delays due to improper documentation

These exceptions may be issued when there is a delay in a package. Shippers have to take responsibility when these exceptions occur to preserve customer relationships. So, the entire process for a refund is tedious for a shipping company. More so, if the shipper has thousands of packages shipped daily. To manage this mammoth task, shippers need experts to help them in the refund process. An audit company like Audintel will help shippers in the refund process.

Advantage of partnering with Audintel

Audintel saves close to 2-5% of a client’s shipping spend by making the entire refund process transparent and efficient. Shippers are in complete control of their profiles while Audintel’s software automatically monitors the shipments. On top of it, Audintel has a call center where they call on the packages which are denied in the automatic refund process. Audintel’s dashboard is intuitive and tracks all shipments in real-time as Audintel’s team reviews the invoices for each shipping carrier. We submit refund requests on a client’s behalf. The client receives the refund amount in their account. Partnering with Audintel is vital for efficient shipping operations.

Conclusion

Parcel delivery refunds are a time-consuming process for shippers. Claiming refunds for late parcel deliveries from multiple carriers is tedious. Experts like Audintel help shippers in saving time and money. Audintel provides excellent support to a client’s supply chain capabilities. We help in reducing shipping costs by requesting refunds whenever there is a delay. For overall efficiency, contact Audintel to audit shipments for you. For further details, write to us at [email protected] or please visit our Audintel website or contact us at +1 (619) 354 8539.