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Why Buy? The Demise of Home-Grown Parcel Shipping Technology: Part 4

As e-commerce continues to boom, asking more of your parcel shipping software to streamline deliveries, analyze data, and inform future decisions is non-negotiable. The complexities of building and maintaining fully integrated and comprehensive parcel shipping technology make 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. We continued with:

In today’s post, the fourth in the series, we look at two more complexities of parcel shipping technology: labeling and carrier invoice auditing.

Seamless Shipping Starts with the Right Label

Small changes to carrier rates can have a major impact on which carrier service a shipper should use for any given shipment. Therefore, the right multi-carrier shipping software will feature seamless integrations with multiple carrier systems, enabling it to rate shop across the shipper’s transportation network for each shipment, using the shipper’s current contract rates and accounting for hidden factors like special services or extra carrier service costs (accessorials) to determine the carrier service best suited for each shipment based on origin, destination, service level, and business rules.

But flawless parcel shipping execution doesn’t end with carrier service selection. A successful parcel delivery journey starts with the right label. Every carrier has its own labeling regulations, and the right multi-carrier shipping software will automatically generate and print a carrier compliant label for each shipment, no matter the service.  Proper labeling can help shippers avoid delays, save on carrier costs, and deliver top-notch customer service. And shippers sending parcels internationally or working with HAZMAT or dangerous goods have even more to gain.

Shippers can use multi-carrier shipping software to achieve:

  • Sub-second responses for in-motion unattended labeling execution, so even the fastest fulfillment and distribution center systems can operate at max capacity
  • Full integration with conveyor-controlled systems, supporting in-motion unattended weighing and dimensioning and including exception monitoring
  • Direct carrier integrations to ensure labels are compliant and up-to-date when printed, thereby avoiding fees, fines, and delays

Deploy Parcel Delivery Strategies that Yield Greater Returns

If the carrier integrations, rate shopping, and compliant printing and labeling functions of parcel shipping technology empowers shippers to please customers and save money on the front end of a shipment, the same technology should audit carrier services on the backend of a shipment to ensure shippers received the services for which they paid.

ebook logistyx quadrant Choosing a TMS for Parcel ShippingMaintaining accountability through carrier invoice auditing can help shippers recover savings they may have lost during delivery execution. Auditing creates transparency by comparing actual carrier performance and billing with projections, then flagging discrepancies. In other words, the software verifies carriers provided the services for which shippers paid, and the more an organization ships, the greater the savings recovery opportunities.

Parcel shipping software such as Logistyx TME performs a wide range of audit tasks, including:

  • Invoice validation and carrier payment resolution to determine whether the carrier provided the service requested and then billed the service correctly
  • Financial analytics to compare projections and actuals so shippers can identify opportunities to save and improve
  • Carrier performance analysis to identify carrier performance trends and inform carrier negotiations

So how can a shipper put the information gained through an audit into action?  Let’s say, for example, a shipper discovers through automatic invoice auditing a particular carrier’s ground service consistently delivers parcels to certain areas of the Midwest one day later than the shipper had anticipated. With this knowledge, the shipper can now improve planning by selecting a different carrier or service going forward to better meet customers’ needs.

And in addition to these direct cost savings, shippers can also benefit from “soft cost” savings, including the elimination of timely and menial tasks including opening mail, sorting invoices, researching rates, auditing and approving invoices, paying carriers, and assigning cost accounting codes. Plus, the cost and time saved through auditing can be reallocated to other key supply chain tasks, thereby optimizing a shipper’s entire operation.

So, Why Buy?

Spending less time in the weeds by automating parcel labeling and carrier invoice auditing will ensure consistency and compliance in your supply chain. But creating and maintaining the necessary carrier integrations alone is a monumental task, never mind building the labeling and auditing functionality in a solution from the ground up. Fortunately, Logistyx has a team of experts focusing on these complexities (and many more) every day. If you’re interested in simplifying shipping execution, saving time and money, reducing manual monitoring and interventions, and holding carriers accountable for the services they provide, find your supply chain software solution with Logistyx today.


Next: Part 5: International and HAZMAT Shipping
Previous: Part 3: Top-Shelf Customer Service