As the saying goes, not wasting money is the best way to save money. Similarly, if you are overpaying on your parcel spend management, you are leaving money on the table.
Most large-size parcel shippers would agree that the parcel industry is advancing at a pace more rapidly than we have ever witnessed before. After years of managing and operating their parcel networks initially based on FedEx and UPS’s service capabilities, parcel shippers are seeing a shift to alternative network strategies that allow the incorporation of other carriers as well.
The parcel industry is constantly evolving based on the powerful shift in how retailers interact with and deliver their customers’ requirements. Keeping your parcel spend optimization in check is more important than ever.
Tips to Keep Your Parcel Spend in Check
1.Observe Your Parcel Cost Management Data
As it turns out, all you need to do is take a closer look into your data because if you are looking for some savings and cost reduction, it’s hidden in your data itself. The most complex and daunting process is developing the appropriate strategy to get the most out of this data – which ultimately comes down to the best parcel spend management tool to help you out. This parcel data enables businesses to dig deeper into their carriers’ contracts and invoices so that you can better negotiate with them for the best prices. This tool helps tremendously in data-driven decision-making.
An intelligent parcel spend optimization platform can identify hidden areas that can be improved, and any hidden surcharge fee or unwanted costs can be notified to create better negotiation strategies with your carriers’.
2.Do Not Stop Auditing Parcel Invoices
A lot of businesses overlook the importance of auditing their parcel invoices, but this is a costly mistake. FedEx and UPS guaranteed service structures have come and gone over the past few years, and some businesses are putting minimal effort into auditing their invoices. The carriers are not perfect when it comes to billing and services. And there are many missed opportunities for you regarding rebates on your invoices from the carriers’ end due to late deliveries and invoice errors.
Do not overlook cost savings worth 20-25% on your overall parcel shipping costs. So, no matter what you hear from the carriers about their money-back guarantees, every business should continue to audit their invoices to zero in on their carriers’ billing errors.
3.Go Through Your Contracts with Large Carrier Service Providers
Despite your company’s financial growth or existing relevant circumstances, you should always renegotiate your parcel contracts with your carrier service provider. There are many misinterpretations that businesses cannot renegotiate a parcel contract before its end date, but it’s not correct. After utilizing most of the negotiating leverage during the pandemic, the carriers have now lost their upper hand in the negotiation process. Shippers must take advantage and engage in a renegotiation process with a well-versed parcel contract negotiation services provider.
The carriers are enduring the same challenging market conditions as any other business, and their immediate focus is holding on to their market share. UPS and FedEx are focusing on gaining each other’s parcel volume. So, this puts you, the parcel shipper, in a powerful position.
Transimpact’s Parcel Spend Management Solution delivers end-to-end data-driven visibility to your parcel spending. Our forward-thinking dashboard delves into your data and discovers the hidden surcharges that make you pay more to the carriers. Our brilliant KPIs trigger you when such scenarios occur, making you all set for your parcel contract negotiation strategy. To explore more about our solution, connect with our experts or schedule a demo.