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Logistyx’s Mike Eisner Discusses Predictive Analytics for Parcel Shipping with Parcel and Postal Technology International

Parcel and Postal Technology International published its September issue featuring an article with industry professionals discussing the growing importance and adoption of predictive logistics in parcel shipping. Among the experts featured was Logistyx’s very own Vice President of Business Intelligence, Mike Eisner.

Consumers expect fast and predictable deliveries, while carriers who are under strain to meet delivery commitments counter volume growth with threshold caps during peak times and continue to implement increased peak surcharges. It’s left shippers hungry for reliable data to help them evaluate the options within their planning and decision making to meet customer expectations.

“The use of predictive analytics has risen dramatically over the past five years, but Covid has really forced and expanded its use – especially among the larger shippers,” Eisner says. “Consumers have evolved, and markets have to adapt, as to the carrier options that are available. The need for insights to support the ability for faster, more responsive decision making with supply chain problems has never been more paramount.”

The data sources aren’t unfamiliar, Eisner adds. Carriers typically have shipping execution, status, and invoicing data to work with, and a good understanding of route optimization and the savings it can provide. The added layer is third-party sources, such as traffic and weather information, and creating or refining the algorithms that help users understand the bigger picture and calculate efficient routes in real time, including a plan B when required.

Mike shares numerous key insights throughout the article – read it in full in the September issue of Parcel and Postal Technology International.

Contact Logistyx today to learn more about our industry-leading Business Intelligence solutions and how we can help you navigate the new normal of parcel shipping plagued by carrier surcharges, capacity crunches, and threshold caps.

Watch Now: Find Your True Parcel Shipping Data

Why Data Drives Next-Level Logistics and Supply Chain Management

Real-time shipment data across different origins, destinations, carrier services, and more enables next-level logistics and supply chain management.

Did you know, 81% of shippers and 86% of 3PLs (Third Party Logistics) providers predict that using data effectively will become “a core competency of their supply chain organizations?”  It makes sense — data can inform strategic decision-making in a big way, and in today’s unprecedented supply chain landscape, now is the time to build smart strategies that future-proof operations.

Parcel shipping data in particular will play a big role going forward, and with the right data available, you’ll be able to have real-time insight into your end-to-end logistics and supply chain management processes, regardless of whether you’re shipping from distribution centers or stores, shipping across borders, or shipping with “gig economy” carriers such as Uber and DoorDash.

But how can you get this data?  And once you have it, how can you use it?

A multi-carrier parcel shipping system will help aggregate, connect, and standardize your parcel shipping data so teams can make decisions with context and tie parcel shipping operations to your company strategy. And more sophisticated systems will include native Business Intelligence that aggregates and standardizes shipping data across carriers, so you have unprecedented reporting capabilities and a system of record for shipping.

Let’s take a look.

Data Optimizes Parcel Shipping Execution

Real-time visibility into shipment status data across different origins, destinations, regions, carrier services, and shipment characteristics (i.e., package weight and time in transit) offers three essential benefits:

  1. You can use the data to build a consolidated view of all carriers within your supply chain.
  2. You can enhance the customer experience with access to the latest shipment status data.
  3. You can leverage the data to trigger carrier alerts that efficiently identify problem shipments and sub-par carrier services for better decision making.

Ultimately, shipment status data can optimize long-term parcel shipping execution, reducing costs and improving on-time delivery KPIs. For example, if shipment status data reveals a shipment is unable to be delivered due to an in-transit delay resulting from a bad residential address, you can adjust downstream processes to avoid similar problems in the future.

Logistics Data Enables Control Tower Coordination

To better manage customer expectations and help resolve supply chain delivery challenges, advanced multi-carrier shipping systems will offer a Control Tower to monitor shipment status data and provide you with updates on carrier delivery performance, effectively holding carriers accountable and improving on-time delivery.

For example, shipment status data can create an alert in a Control Tower to update a delivery address, provide missing customs data, or advise customers of an in-transit carrier delay. This not only empowers you to manage client delivery expectations when problems occur, but as you solve problems and manage client expectations, you can track and analyze the relevant data points to support future decision-making.

Using shipping status data to fuel a Control Tower provides you with the following benefits:

  • You achieve greater visibility of performance against on-time delivery KPIs.
  • You can receive actionable delivery event alerts.
  • You can automate business-rule-driven processes that improve on-time delivery.
  • You improve end-to-end collaboration within your extended supply chain and its partners.

Data Fuels Business Intelligence

The ability to make the right decisions based on shipping data has never been more important, especially considering the challenges of the last year. As you strive to successfully meet the demands of today’s and tomorrow’s consumers, you must harness and leverage your shipping data to identify and gain control of parcel shipping opportunities.

Business Intelligence interprets your data from various sources and gives you the ability to:

  • Easily consolidate all shipping data from multiple sources
  • Automatically compute this data and report against chosen thresholds, KPIs, and business rules
  • Filter the data to glean deeper insights
  • Take quick action when shipping performance doesn’t meet set thresholds

With Business Intelligence, you can use your data to achieve a new level of operational veracity within your business, predicting, sharing, and delivering on key performance indicators across complex distribution scenarios.  Examples of the data you can analyze in a Business Intelligence platform include:

  • Execution-based data. Analyze quantitative data, such as shipment cost, carrier service levels, carton dimensions, carton weight, carton counts, carton origins, and carton destinations.
  • Track & Trace data. Analyze delivery status messages for each tracking number from the point of shipment manifest through delivery and, in the case of returns, back again. Business Intelligence leverages these messages to efficiently identify problems or patterns to address. Examples include problems related to geography, carriers, or even shipment characteristics.
  • Control Tower data. Analyze alerts and internal performance solving these problems.  Data ties back to carrier and service level performance, issue frequency, employee performance, and associated factors.

Business Intelligence creates a unified source of truth that analyzes KPIs and creates visuals, custom reports, and analyses. Built to measure performance against your own business rules, Business Intelligence provides you with an easy way to visualize the masses of shipping data you have in your system for meaningful interpretation.  You can receive early warnings about supply chain disruptions and uncover surprising new ways to improve your supply chain.

With a partner like Logistyx, you have the sophisticated technology you need to aggregate shipping data and gain easy insights on how to best delight your customers and meet your business goals.

Learn more about how Logistyx and Manhattan helped Footlocker use data-driven insights to improve parcel shipping operations.

Use Business Intelligence to Rethink your Parcel Shipping Strategy

The truth is parcel shipping is complex, which is why you need to optimize your transportation strategy to maximize your profits per parcel. And the best way to do this is to get business intelligence visibility. 

Is it just us, or is it starting to feel like Groundhog Day? After spending most of Q4 2020 digesting headline after headline alerting shippers and consumers worldwide of a carrier capacity shortage and consequently carrier surcharges, here we are again in Q2 2021, waking up to similar headlines.

Why all the drama? Well for one thing, we’re all shopping online. Digital Commerce 360 estimates approximately $1 of every $5 spent on retail purchases during Q1 2021 came from online orders. This surge has created an influx in parcel shipping demand, and carriers have increased rates accordingly. For shippers looking to retain their margins and even transform their shipping operations into a profit center for the business, it’s more critical than ever to optimize transportation strategies.

Improve Profits per Parcel with Business Intelligence

On the surface, parcel shipping seems easy. A shipper creates and affixes a label to a box, and carriers deliver the package to its destination. But what happens when you’re processing 300,000 orders a day out of a single distribution center? What happens when some of your packages contain hazardous goods? What happens when you’re shipping packages across borders? What happens when you’re moving inventory from a distribution center to a store, or from store to store?

And what happens when those shipments come back?

The truth is parcel shipping is complex, which is why you need to optimize your transportation strategy to maximize your profits per parcel. And the best way to do this is to get visibility into your parcel shipping data. The data will analyze your parcel shipping operations across hundreds of carrier services, dimensional weight factors, accessorial charges, shipping zones, pricing structures, and SKUs and tell you whether – and where – you’re leaving money on the table. Even better, it will provide a blueprint for how to increase savings.

Leverage BI Technology and Start Small

The good news is a multi-carrier parcel shipping system with Business Intelligence provides shippers with an easy way to aggregate, normalize, and report transportation data. This will:

  • Eliminate silos, connecting people, processes, data, and technology so teams can make decisions with context and tie parcel shipping operations to company strategy.
  • Identify inefficiencies and empower shippers to increase on-time delivery rates, shipping velocity, and order volume.
  • Demonstrate the impact of carrier capacity limitations and order demand, providing managers with the ability to pivot carriers and transportation budgets to match customer expectations.
  • Surface insights, giving leaders a source of truth and telemetry to steer, predict, and report on the business of parcel shipping with confidence.

However, the enormity of shipping data available once the technology is implemented can be overwhelming for even the most seasoned shippers. Therefore, we often recommend shippers initially focus on “high-impact-easy-change” areas.

For example, how many of your parcels are shipping via express services unnecessarily? In the age of Amazon, most shippers are offering next-day and two-day delivery, and they frequently use an express service. However, most of all ground packages are delivered in two days or less, and ground is also a guaranteed service. In our experience, the savings from a simple pivot from express to ground often yields an ROI on the Business Intelligence technology investment within the first year.

Prioritize Visibility

Make 2021 the year in which you look for more analytics and intelligence in your systems. Real-time visibility, distributed order management, and multicarrier parcel management—all connected and supportive of overall goals for lowest-cost, best-service delivery – will give you a competitive edge.

To learn how Logistyx can help you optimize parcel shipping, watch Find your True Parcel Shipping Data.

Logistyx Business Intelligence Powers Parcel Shipping Transformation

Logistyx’s cloud multi-carrier parcel shipping system with Business Intelligence aggregates and normalizes shipping data across carriers, so shippers have unprecedented reporting capabilities and a system of record for shipping.

When it comes to parcel shipping, companies can’t afford to lose a single minute or dollar to inefficiencies. But as shippers scale operations to meet increasing demand, they often find themselves juggling applications that don’t play well together. They may work in silos without clear visibility on overall parcel shipping performance. As a result, transportation teams overspend, miss parcel delivery deadlines, and ultimately disappoint customer expectations.

But adding more tools to already sprawling supply chain technology stacks just makes the problem worse. Instead, shippers must adopt a new, more systematic approach to parcel shipping management and measurement.

A System of Record for Parcel Shipping

Unlike other strategic business functions such as finance and human resources, parcel shipping usually lacks a “system of record” that connects and automates the essential data necessary to effectively run and scale the business.

Logistyx’s cloud multi-carrier parcel shipping system with Business Intelligence aggregates and normalizes shipping data across carriers, so shippers have unprecedented reporting capabilities and a system of record for shipping – a source of truth that visualizes the full shipping lifecycle across SKUs, geographies, and more, so supply chain teams can optimize transportation strategies.

Logistyx Business Intelligence:

  • Eliminates silos, connecting people, processes, data, and technology so teams can make decisions with context and tie parcel shipping operations to company strategy.
  • Automates parcel shipping performance reporting, identifying delivery errors and inefficiencies and empowering shippers to increase on-time delivery rates, shipping velocity, and order volume.
  • Flags the impact of carrier capacity limitations and order demand, providing managers with the ability to pivot carriers and transportation budgets to match customer expectations.
  • Collects data and surfaces insights, giving leaders a source of truth and telemetry to steer, predict, and report on the business of parcel shipping with confidence and predictability.

Parcel Shipping Data at Scale

According to Ken Fleming, president of Logistyx, “With Logistyx Business Intelligence, we’ve achieved what we set out to do: build a reporting engine capable of aggregating and normalizing shipping data across multiple carriers at scale, and our customers are increasingly utilizing the technology.  We’ve both automated reporting and made transportation simulations possible in a single, connected source of truth.  As a result, shippers achieve a new level of operational veracity within the business, capable of predicting, sharing, and delivering on KPIs across complex distribution scenarios.”

Mike Eisner, V.P. of Business Intelligence, agrees, and points out that having a single source of truth is more critical than ever when shipping parcels in a post-pandemic world. “Having access to good data, metrics, and reporting can make or break shippers in the current parcel environment. With carriers over-capacity right now, shippers are being hit with everything from peak surcharges to lesser capabilities to unfavorable contract terms.  To offset these challenges, shippers need alternatives and options or risk being at the mercy of their carriers’ shipment thresholds and, subsequently, disappointing their own customers.”

Keeping Order Fulfillment on Track

Logistyx features a carrier library of more than 550 carriers, and Logistyx solutions seamlessly integrate with Manhattan, BlueYonder, Oracle, SAP, HighJump, Microsoft, VAI, IFS, and other business applications.  Shippers often choose Logistyx because they can build a complete, connected supply chain ecosystem in the cloud.  And when shippers go from wrestling with disparate, on-premises, and even manual transportation management systems to a single, cloud-based multi-carrier parcel management solution with Business Intelligence and integrated with their supply chain and business technology stacks, they start to see the results quickly.  States Eisner, “Often, shippers find new ways to get their products from point A to point B to save money and gain supply chain efficiencies. I’ve seen several examples where shippers put our system in place and quickly find new carrier options to satisfy the tens of millions of shipments they process every year, sometimes tracking hundreds of thousands of dollars of savings. By extending the concept of transportation execution to include Business Intelligence, Logistyx drives the inefficiency out of parcel shipping processes; that’s where the real ROI is achieved.”

Get the Most out of your Parcel Shipping Operations with Business Intelligence

A multi-carrier parcel shipping system with Business Intelligence can unveil opportunities to increase throughput, decrease transportation spend, and improve customer service.  Watch our video: Find your True Parcel Shipping Data to learn more.

3 Ways to Maximize the Power of your Multi-Carrier Parcel Shipping Solution with Business Intelligence

A Multi-Carrier Parcel Shipping System with Business Intelligence provides shippers with an easy way to aggregate and report transportation data.

According to an American Shipper report, 53% of companies aren’t using Business Intelligence to collect and analyze their supply chain data. This poor adoption rate implies companies are still performing manual data analyses (translation: excel spreadsheets). And there’s no way companies using excel spread sheets have quick reaction times when their shipping landscape changes. What they do have: delayed reactions to shipping events and hence an over-abundance of risk in the form of shipping cost increases and delivery delays.

A Multi-Carrier Parcel Shipping System with Business Intelligence provides shippers with an easy way to aggregate and report transportation data; however, companies can miss savings opportunities if they don’t put enough thought into how they want to use this shipping data once they have it. Optimizing a multi-carrier system with Business Intelligence technology requires companies to thoughtfully define how they will apply the technology and how they will set benchmarks and measure against them. These three tips can help:

1. Think ahead.

A common question our prospects ask is, “How much can a multi-carrier parcel shipping system with Business Intelligence save?” We always respond with a range (i.e., 10% – 30%). One of the reasons for providing a range is the degree of change the shipper is willing to consider with regard to its transportation optimization strategies. For example, if for some reason a shipper cannot add another carrier to its transportation mix, then the shipper is working within a fixed set of variables, and savings might be on the low end of the range. In contrast, the high end of the range occurs when shippers have the flexibility to look at the existing transportation landscape and question what could be done differently, such as adding a new carrier or even a new distribution center. For those willing, Business Intelligence is an opportunity to reexamine distribution strategies and consider all possibilities, asking the question, “What if?”

2. Define KPIs.

Without KPIs, transportation management becomes subjective. For example, it’s not uncommon for supply chain leaders to tell us they’re worried about how carrier rate increases could “shake out.” What does “shake out” mean? If the shipper has reduced parcel shipping costs by 8% and increased on-time delivery rates, then it is likely meeting objectives despite the carrier rate increases. If the opposite is true, however, the shipper will have to roll up its sleeves, identify alternatives such as expanding the transportation network beyond familiar carriers, and use Business Intelligence to run simulations to identify optimal strategies.  Shippers that set a KPI up front will be amazed by how quickly they can prove the ROI on a TMS for parcel shipping with Business Intelligence.

3. Run simulations.

There are usually myriad opinions within an organization’s supply chain team when it comes to reducing transportation costs, and one way to transition from opinion to fact is to use Business Intelligence to demonstrate the value of different shipping scenarios. Running transportation simulations can identify where significant savings opportunities exist, challenging the norm and comparing “what if” to current performance. Shippers have a “sandbox” to approach transportation scenarios with a creative mindset and verify and measure the impact of various scenarios on the bottom line.

Get the Most out of your Multi-Carrier Parcel Shipping System with Business Intelligence

A multi-carrier parcel shipping system with Business Intelligence can unveil opportunities to increase throughput, decrease transportation spend, and improve customer service. However, it’s only as effective as the deployment strategy behind it.

Are you optimizing your supply chain software investments? Contact us today for a free shipping data analysis.

 

Disruptor Daily Speaks with David Hogg on the State of AI in Supply Chain Management

Smooth and efficient supply chain solutions are key to increasing profitability and enhancing customer experience; more companies are turning to artificial intelligence (AI) to help achieve this. Globalized ecommerce and higher expectations for speedy shipping means greater opportunity for unpredictability in the supply chain. To gain a competitive edge, it’s essential to adopt AI capabilities as part of supply chain strategies to keep pace and quickly respond to unanticipated changes.

Logistyx Vice President of Business Development David Hogg was recently quoted in a Disruptor Daily article exploring the trends driving AI’s role in the supply chain industry. Hogg explains how AI-enabled features in supply chain technology provide visibility to shippers and increase timeliness, a major source of business for companies competing against e-commerce giants like Amazon.

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Read David’s insights on this trend on Disruptor Daily: “What Trends Are Shaping AI In Supply Chain Management Today? 16 Experts Share Their Insights

How to Beat Amazon with Parcel Shipping Business Intelligence

How can shippers and e-commerce companies compete with Amazon and Alibaba when it comes to high-performance fulfillment? The truth is, it’s difficult for most companies embarking on an e-commerce and/or omnichannel strategy to provide the benefits Amazon and Alibaba have made “standard,” such as fast, cost-effective delivery. However, thoughtful companies that put the right transportation management for parcel technology in place will be able to access and leverage one core tool that drives the giants of the fulfillment industry: business intelligence. You see, one of the keys to Amazon’s and Alibaba’s success has always been technology and the use of computing systems to collect, analyze and weaponize business intelligence. It’s what allows both companies to understand their customers and their buying behavior, and to provide better fulfillment and more convenient service at a speed and cost that competitors have struggled to match. But business intelligence isn’t the exclusive domain of these global powerhouses. At Logistyx, our first priority is data analytics and business intelligence. More than half of our resources, both financial and personnel, are dedicated to R&D to address two major shifts in the parcel shipping industry today and their effects on enterprise revenue:

  1. Omnichannel distribution
  2. Customer delivery expectations

With 1,225 years of experience and 1,000+ global customers, what we unequivocally know is for large enterprises tackling these shifts, there is no “one size fits all” approach to parcel shipping. Carrier networks vary. Distribution models differ. Customs and cross-border regulations diverge from one region to the next. Therefore, we continuously create and iterate parcel shipping technology that is data driven, not carrier driven or location driven. As a result, our solutions are sophisticated enough to be truly agnostic – to carriers, to regions, to customs and regulations – while empowering organizations to ship worldwide efficiently and at the lowest cost.

For example, business intelligence in TME, our Transportation Management System (TMS) for parcel shipping, identifies carrier delivery performance improvements and cost saving opportunities to enable shippers to gain a competitive advantage. This may come in the form of identifying and adjusting improperly invoiced items relating to contractual rates, accessories, guaranteed service rebates, claims management, address correction validations or even manifested but not shipped transactions, or it may come in the form of modeling and comparing selected carrier services against actual carrier performance to find routing alternatives with lower cost implications and/or faster delivery times.

get the checklist: choose the right tms for parcel shipping

Regardless of how a shipper leverages business intelligence, however, what’s important to take away is that the net result of each endeavor can be profound and significant from a cost savings perspective. As stated by our V.P. of Business Intelligence, Mike Eisner, in Logistics Viewpoints, “When businesses connect the data… and then apply business intelligence, complex decisions and tasks get simpler. Opportunities to significantly shift, reduce and manage global transportation costs and monitor KPIs – without sacrificing service – are just a few of the most basic, immediate and impactful ways interconnectedness pays off for shippers.” Ultimately, this allows shippers to achieve on-time delivery in full at a palatable price and empowers them to compete effectively against some of the key players in the e-commerce and omnichannel game.

Logistyx TME: Beyond Business Intelligence.

Global Carrier Network

TME integrates with more than 550 carrier services and provides shippers with an unmatched multi-carrier network and automated selection of carriers based on preferences for cost, capacity, efficiency and effectiveness. You can even rate shop and perform rate simulations for individual parcel shipments at scale. And not to be forgotten: it also generates all the necessary compliance paperwork such as labels, end of day manifests and CMRs.

Customer Service

TME provides full visibility into customer deliveries, including a complete picture of what’s happening with each shipment, so you can monitor carrier performance and respond rapidly to any issue or disruption. In fact, with the TME Control Tower, you can create smart exception workflows that enable automatic responses to transportation exception events. And the software also provides trend analysis reports to help with carrier selection and rate negotiations.

Enterprise Integrations

Because we are a data-focused company, we know how important it is for business-critical applications to connect seamlessly without draining IT resources. Therefore, TME integrates with e-commerce, omnichannel, WMS, TMS and ERP systems, aligning parcel shipping operations with business goals to help elevate overall shipping and fulfillment performance and improve ROI for the entire technology stack.

Finance and Audit

TME simplifies carrier invoicing and audits. Our solution automatically matches shipment data with invoice data to help you evaluate carrier performance, ensure invoice accuracy and uncover extra or unforeseen costs before you issue payments. 

A One-Touch Shipping Ecosystem

You can also use TME  in tandem with Zebra’s best-in-class mobile computers and label printers to complete your shipping ecosystem and ensure easy accessibility and on-demand label printing, wherever you need them.

Take the Next Step

To learn more about TME’s powerful technology, including state-of-the-art business intelligence, download our brochure or contact us to request more information and a free consultation.

How to Control Parcel Shipping Costs with Business Intelligence

Mike Eisner, Logistyx Vice President, Business Intelligence, recently contributed a guest commentary to Logistics Viewpoints, in which Eisner outlines how manufacturers and retailers can leverage business intelligence to meet consumer expectations for fast delivery, increase revenue per shipment and collaborate better with key partners in the extended supply chain. Eisner summarizes that globally, we are nearing one in four human online purchasers, and Amazon commands 14% of these global online sales. Within the US, they dominate with +50% market share of online sales, and their ability to deliver on clients’ expectations for same day, workplace, Sunday, pick-up and locker delivery options while also reducing transportation costs has heightened consumers’ delivery service expectations around the world. Other manufacturers and retailers have taken notice, and to compete, now offer myriad delivery options as well.

However, myriad delivery options have often translated into soaring parcel shipping costs for these organizations. To contain these costs and increase revenue per shipment, Eisner recommends that manufacturers and retailers large and small need to incorporate business intelligence into their transportation management. Without it, transportation teams are operating in a silo and decision making becomes flawed. When data is interconnected from tendering… to parcel shipping execution… to carrier invoice payment, and then synchronized for reporting, transportation teams simplify the complexity of informed decision-making. For example, in traditional financial audit processes, business intelligence can identify and adjust improperly invoiced items relating to contractual rates, accessories, guaranteed service rebates, claims management, address correction validations or even manifested but not shipped transactions.

Shippers can also use business intelligence to model and compare selected carrier services against actual carrier performance to find routing alternatives with lower cost implications and/or faster delivery times. A simple example is foregoing use of a premium overnight expedited service level for a carrier, when the lower cost ground option offers the same delivery time at a much lower cost. Business intelligence can also reveal even more advanced optimization strategies, such as effective ways to position facilities and inventory around the globe. While these analyses are more complex, the overriding principle – provide near immediate delivery options to satisfy consumers’ need for instant gratification at as low a delivery price as possible – remains. In total: the results of each business intelligence effort – let alone all – can have a significant impact on cost savings. To learn more about what Eisner has to say about transforming parcel shipping with business intelligence, read his guest commentary on Logistics Viewpoints: Modern Business Intelligence for E-Commerce Shipping.

Why Your Multi-Carrier Parcel Shipping Solution Needs a Control Tower

Today, the consumer experience has many touchpoints from discovery to delight, and to become a true Direct to Consumer (DTC) brand, manufacturers must own responsibility for each one. Introduce friction at any moment in the end-to-end consumer buyer experience… and risk losing consumer loyalty. Despite the criticality of providing a seamless buying experience, recent research highlights the many “hiccups” that occur from click to consume, particularly when it comes to fulfilling orders at the speed and convenience shoppers expect. In fact, the biggest gripes for buyers who’ve had negative shopping experiences mostly relate to delivery and returns. For example, over the last 12 months, 60% of consumers in the UK reported their purchases did not arrive when expected, and 40% of shoppers claimed items did not arrive at all. The U.S. too, has its fair share of deliveries gone awry, and Sri Sridhar, CEO of  lateshipment.com (yes, there’s an entire website for this) states 15-23% of packages are delayed during the holidays. Statistics like these don’t bode well for manufacturers who are counting on repeat purchases and a good brand reputation to win the DTC game. According to a study from OSM Worldwide, 79% of online shoppers claim they will contact customer service when an urgent item is one day late, and worse: two-thirds will express frustration to friends and family. With a sad nod to Carnegie, this is basically the antithesis of how to win friends and influence people!

Install a Control Tower.  Receive “Exception Event” Alerts.

get the checklist: choose the right tms for parcel shipping

The good news is that in the same OSM Worldwide study, online shoppers reported how much they value parcel delivery transparency, with 40% stating they check on a parcel’s delivery status at least once a day, and 55% stating they expect an order’s status updates to be current as of a few hours. Don’t think this sounds like good news? Then you must not be leveraging a Multi-Carrier Parcel Shipping System. Manufacturers who have implemented a multi-carrier parcel shipping system benefit from Control Tower functionality, which means they can provide shoppers with the transparency they value. The system will send early warning signs when there are parcel delivery issues or “exception events,” empowering customer service teams to proactively trouble-shoot the exception event and communicate delivery updates to the customer in real time. For example, perhaps the product can be sent from a different distribution center to arrive on time. Or perhaps the customer is willing to retrieve the product from a nearby store or locker. Customers can even track and trace shipments on company websites without the need to visit carrier sites, reducing inbound calls about shipment status to customer service and increasing the customers’ browsing behavior on the manufacturer’s website – which (fingers crossed!) could lead to additional purchases. Consider too that tracking delivery exception events enables manufacturers to capture accurate carrier performance data – improving carrier service measurement and better informing carrier contract negotiations.

Successfully Navigate the Complexity of Parcel Delivery.

By leveraging a multi-carrier parcel shipping system with Control Tower functionality to install “exception event” alerts in the shipping process, manufacturers can successfully navigate the complexity of DTC parcel delivery – ensuring on-time delivery in full and improving customer service performance metrics. To learn more about how you can leverage a multi-carrier parcel shipping system with Control Tower for parcel shipping in your own organization, download our brochure: TME 3: Flexible Transportation Management System for an Omnichannel World.