Assume you have a relatively low average of overbilling instances in your shipping invoices, 1 percent. If your company’s freight spend is $1 million, that 1 percent amounts to lost opportunities of $10,000. Now, imagine the savings if 1 percent of your parcel shipments, which make up 75 percent of total freight spend, cost half as much as they do now.
The savings could be as high as $350,000 on top of the $10,000 in savings by recapturing overpayments.
The opportunities for savings in parcel freight management are clear and add up much faster than shippers may realize. This demonstrates the value of a multi-carrier parcel shipping system, but why are shippers so reluctant to embrace the next wave of technology in freight management? Let’s take a closer look at the problem, the solution, and how to pick the right freight management system for parcel shipping.
Parcel shipping can be quite complex, but a multi-carrier parcel shipping system is a labyrinth of opportunities for savings and risk for great costs. As explained by Adam Lewenberg via Parcel, shippers see between 3- and 10-percent annual increases on shipping costs, and the costs of parcel shipping are soaring at an even faster pace thanks to an improved economy, consumer demand, and a rise in e-commerce.
As the world of e-commerce exploded, demand for parcel shipping has gone through the proverbial roof. Shippers are paying more, yet they continue to get fewer services at the same time. For those with existing parcel contract carriers, finding ways to save money can feel impossible. However, opportunities for savings still exist.
Expansion of service level agreements and contract carriers are the answer to problems in using multi-carrier parcel shipping strategies. Instead of focusing on building shipping costs into product prices, shippers should consider implementing a multi-carrier parcel shipping system.
Such systems allow shippers to immediately gain end-to-end visibility of all shipments, especially those at greatest risk for instances of overbilling or incorrect freight classification. Paired with increasing focus on dimensional pricing models, accountability and visibility in parcel shipping are key to keeping freight spend in check. The rigidity of parcel shippers must evolve and take of advantage of the newest technologies, including a transportation management system (TMS), such as the Cerasis Rater, which now empowers shippers with more information for multi-carrier parcel management through the Cerasis’ partnership with Pierbridge.
Although the Cerasis Rater is clearly our gold-standard for multi-carrier parcel shipping systems, shippers should not discount their own internal processes for selecting a system. Therefore, we would like to encourage shippers to use these steps for selecting the right multi-carrier parcel shipping system for their unique operation:
The savings of implementing a multi-carrier parcel shipping system hinge on your status of your current freight spend and the lost opportunities resulting form inefficiencies in your logistics processes. In other words, the savings amount to reducing overpayment, getting the best rates possible, and securing customer-business relationships by delivering a shipment on-time, at competitive shipping rates, and without so much as a scratch on the box. Instead of trying to manage parcel shipping manually, let a multi-carrier parcel shipping system do the “heavy lifting.”
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