Guidelines for Purchasing a Multi-Carrier Parcel Management System
For companies shipping parcels, managing every stage of the delivery from the distribution center to the doorstep is complicated. Even the most sophisticated shippers struggle to overcome distribution challenges and control transportation spend.
As a result, shippers often implement multi-carrier parcel management systems to cost-effectively deliver their products to their customers on time. And because many solution providers are continuously innovating system features and functionality to support parcel shipping challenges of increasing complexity and scope, these shippers are yielding a quick ROI on the technology and finding a competitive edge.
However, not every multi-carrier parcel management system provider can support highly complex, global scenarios with a complete set of features and functionality and a worldwide network of carrier services integrations. Therefore, to help shipping stakeholders make the right multi-carrier parcel management system purchase, Logistyx created a shipping quadrant. The quadrant helps companies quickly ascertain how their current shipping operations compare to their long-term product distribution vision and then determine which shipping technology they need to execute their distribution strategy, both today and tomorrow.
The quadrant accounts for functional areas such as:
- Parcel Contract Management
- Carrier Compliance
- Parcel Consolidation
- Label and Document Creation
- Parcel Execution
- Real-Time Parcel Visibility
Companies can fall into any of the four quadrants. One might be in the lower left, only requiring shipping technology with basic labeling and execution functionality to match its business model, and that’s okay. Others might be on their way to a worldwide omnichannel strategy and need functionality such as a Contol Tower and Business Intelligence – and on a global basis to boot. Many are likely somewhere in between; possibly on the way to an omnichannel strategy, but currently only shipping domestically, or shipping globally, but volumes are low.
Using the Logistyx Quadrant, companies can ensure they’re leveraging the right technology for their unique distribution strategy and goals. In line with Gartner recommendations, Logistyx advises companies researching multi-carrier parcel management systems to first identify their most challenging issues and then opt for a solution that can handle the issues at the most sophisticated level.
The Benefits of a Cloud Multi-Carrier Parcel Management System
Digital agility is also a critical factor when selecting a multi-carrier parcel management system. In a BCG study of more than 200 companies, digitally agile businesses achieved 1.8x higher earnings growth than digital laggards—and more than double the growth in total enterprise value. BCG also found that digitally agile companies are best situated to realize a “resiliency dividend,” by leveraging technology and digital capabilities to steer their business in real (or near-real) time to strengthen their position in the midst of a crisis.
Cloud multi-carrier parcel management systems improve digital agility by allowing businesses to seamlessly connect people, processes, and third parties to their parcel shipping operations in real time, regardless of location and with minimal upfront costs and IT investment. All users can execute, track, and analyze parcel shipping processes in a single solution – improving reaction time, collaboration, and decision-making accuracy when the unexpected occurs. Furthermore, using a cloud multi-carrier parcel management system enables businesses to realize a return on investment quickly — without the hit of an initial investment and with the benefit of accelerated implementation and integration processes.
Popular benefits include:
- Quickly and seamlessly integrating with other supply chain technology to create a global supply chain ecosystem.
- Syncing data across all supply chain functions, making it decision-grade and providing a single source of truth for all parties.
- Easily scaling to support the company as shipping volumes and complexity increase, enabling high-growth businesses to seize opportunities and react to threats without navigating manual processes or extracting data from clumsy systems.
Choose the Right Multi-Carrier Parcel Management System for your Business
You can simplify the complexity of parcel shipping by implementing technology that best meets the needs of your unique shipping environment. To learn more about the Logistyx quadrant and how to purchase the right multi-carrier parcel management system for your business, contact a Logistyx expert today.