Why Buy? The Demise of Home-Grown Parcel Shipping Technology: Part 2
As e-commerce continues to boom, asking more of your parcel shipping software to streamline deliveries, analyze data, and help inform future decisions is non-negotiable. The complexities of building and maintaining fully integrated and comprehensive parcel shipping technology makes home-grown solutions less practical than ever.
In the inaugural post of this series, Why Buy? The Demise of Home-Grown Parcel Shipping Technology, we examined some of the modern complexities of parcel shipping and the intricate technologies enabling this supply chain function. In today’s post, the second in the series, we look at two more complexities of parcel shipping technology: Business Rules and Business Intelligence.
The value of parcel shipping technology depends largely on the data input and output. In the input category, business rules empower shippers to direct the technology on specifically how to manage parcel shipments. In the output category, Business intelligence offers valuable and actionable insights to shippers to improve decision-making, problem resolution, profits, customer service, and more.
To align a solution with your business goals, parcel shipping software must be told how to manage the delivery of every customer order, and business rules give shippers the necessary controls to direct the technology in any situation it may encounter.
Business rules typically follow an if-then format, where one action triggers another. For example, if a customer selects two-day shipping, the system should have a business rule in place to handle this, accounting for the customer’s location, relevant carrier service options, and other factors. In this example, a shipper would likely direct the system to ensure on-time, two-day delivery at the lowest possible cost.
As shippers write business rules to cover a wide range of parcel management situations, they should factor in important variables, including:
- Flexibility: What business rules can be “broken” and under what circumstances? For example, can an on-time delivery metric fluctuate during peak season or hurricane season?
- Carrier Service Selection: Are carrier and service selections optimized based on rate, success metric, prior experience in the region, mode of freight, or some combination of these?
Determining the right business rules for every situation provides plenty of complexity without having to then code these business rules into a home-grown system. This is why most shippers avoid this complex, tedious, and time-consuming task by investing in parcel shipping software that meets their needs.
Business Intelligence should provide a 360-degree view of an entire parcel shipping operation. The real-time visibility of each delivery that Logistyx’s parcel technology provides, when analyzed as a whole, provides valuable insights shippers use to cut costs and scale a domestic or global shipping strategy. Business intelligence yields a trove of actionable business insights as it compiles aggregate data on parcel delivery and order fulfillment pricing, on-time delivery rates, and more. Harvesting these insights can lead to substantial bottom-line savings and increased customer satisfaction.
With the right Business Intelligence or even some thorough manual analysis, insights obtained from parcel shipping can be used to:
- Establish predictive insights for more accurate estimates of new shipping scenarios
- Adjust carrier services for seasonality and regional or other supply chain disruptions
- Identify patterns of delivery problems to devalue carrier services that continually underperform and adjust carrier service selection accordingly
- Determine why oft-returned products fail to satisfy customers: the wrong products may be getting picked at a certain distribution center, size charts could be wrong for a particular product line, etc.
Business Intelligence can even help shippers fine tune the business rules in place to direct parcel management and ensure they serve their intended purpose. For example, if a business rule dictates a particular carrier’s ground service be selected for all two-day shipping orders to customers in the Midwest but Business Intelligence indicates customers in Wisconsin routinely receive late deliveries, business rules need to be adjusted to manage orders shipping to Wisconsin.
Logistyx customers have experienced the benefits of Business Intelligence firsthand and increased profits per parcel with our user-friendly solution:
- By integrating our parcel shipping technology with enterprise supply chain systems, automating freight invoice reconciliation, and streamlining transportation planning, PL Developments recovered $1.5 million in transportation savings
- MCT Manufacturer used Business Intelligence to streamline operations and saved 18% overall.
- RockPoint Logistics chose Logistyx to automate its entire fulfillment process, which led to a 3% reduction in overall transportation spend and an increase in customer satisfaction.
So, Why Buy?
The interconnected complexities of effective parcel management technology simply create too arduous a task. Business rules provide the controls shippers need and Business Intelligence provides game-changing insights for shippers’ businesses, and both require advanced functionality, ongoing updates, and sophisticated integrations with resource planning systems. Not only can this functionality be found in today’s parcel shipping technology, but it comes with a lower upfront cost, rapid deployment, and turnkey updates and maintenance.