Large volume parcel shippers have a huge transportation budget laden with line items. Often, this spend goes unmonitored due simply to the sheer amount of work required to track significant quantity of invoices, payments and claims.
Without deploying parcel audit services that empower performance optimization, small package shippers face a storm of potential risks. These can span the spectrum, from non-compliance and failed service to multiple payments of the same invoice and fraudulent usage of your account number. In each case, a lack of awareness into shipping activities creates risk that not only jeopardizes profitability. It also threatens to negatively impact customer experience.
It takes a team of parcel logistics experts – and 360-degree visibility across your transportation operations – to calm the storm and mitigate these risks.
Best practices for optimizing your parcel operations requires a “diagnose first, prescribe later” approach to designing best-in-class parcel programs that maximize service levels with minimum disruption.
Diagnosing Problem Points with Parcel Audit Services
E-commerce continues to radically change the way Business-to-Consumer (B2C) and Business-to-Business (B2B) organizations serve their customers. UPS Estimates global e-commerce sales will reach $3.3 trillion in 2019 and more than double to $6.7 trillion in 2025. Further, it cites analyst predictions that global e-commerce sales, projected to account for 13 percent of retail purchases in 2019 will grow to 20 percent in 2025. In terms of parcel volume in the United States, FedEx expects the U.S. parcel market to double in size to more than 100 million packages per day by 2026, with e-commerce a significant driver of accelerating volumes.
With increased parcel volumes comes increased complexity. Not only will this spur increased challenges associated with invoice, payment, and claims management. This evolving marketplace requires that parcel service providers closely monitor service practices to maintain their own profitability. Be mindful of carriers’ efforts to shift pricing practices and strategies around surcharges and accessorials to financially support associated service needs.
Now more than ever, small package shipping optimization powered by audit technology and parcel expertise is integral to helping shippers validate their practices and uncover opportunities to optimize performance.
Three steps are involved in the optimization process:
- Solutions Assessment: Review your current state and clearly identify your financial goals, your customer service needs and your logistics requirements.
- Program Analysis and Design: Leverage industry knowledge and proprietary technology to carefully analyze all aspects of your parcel program.
- Implementation: Once design is complete, manage RFPs and optimize your platform to best meet customers’ needs.
Best practices for auditing your parcel operations requires visibility into your supply chain, diligent data collection and smart analysis. Market-leading service providers collect more than 200 data points from parcel and freight bills to uncover duplicate invoices, bill of lading errors, missing items, damaged cargo and more. Less rigorous companies check far fewer data points, missing discrepancies that, when resolved, lead to cost savings.
Audit Services Recover Lost Profit, Drive Improvement
Rigorous parcel audit compliance services will assess to the penny against client contracts to match program costs with services rendered. Auditing every invoice takes a tremendous amount of administrative effort; not auditing invoices mean you leave money on the table. Auditing with SOC I Type II compliance means complex invoices are inspected and unraveled for national and regional carriers.
Using collected data, you can model what-if scenarios to enhance programs for current strategies and future goals. These scenarios can address mode optimization, split shipment assessment, routing analysis, DC alignment and site selection analysis, mergers and acquisitions analysis, fulfillment models and regional carrier analysis. The result is a parcel program closely aligned with business goals based on fact-based analytics, robust audits and industry expertise.
Leveraging a partner with an Enterprise Logistics solution and an engineered parcel program supports growth of your business. Transportation Insight’s audit analysis offers deeper insight into parcel audit services to help you keep customers happy, streamline business operations and achieve competitive edge.