The heightened growth of parcel volume and costs in 2022 has significantly impacted domestic and international shipping service providers. As costs climb, the need to watch every penny remains paramount, leading more and more parcel shippers to look for ways to deal with these costs. General rate increases are to be expected, but as fees continue to climb, something has to be done. “Higher annual rate increases and expanded surcharges will make 2022 an even more expensive year for unprepared parcel shippers. A 5.9% general rate hike is common across U.S. parcel carriers this year, higher than the 4.9% increase many put into effect in 2021. When factoring in FedEx and UPS’ adjustments to their surcharges, such as for fuel or oversized package handling, the overall increase in what shippers are paying” comes closer to 9% or more”, according to Supply Chain Dive. This is where parcel auditing services can help shippers better monitor fees and control rates. However, some common myths have to be dispelled about freight auditing.
Myth 1. Auditing Causes Conflict With Carriers
A pervasive myth concerning parcel auditing services is that it promotes conflict and the inability to collaborate with carriers effectively. However, the opposite is true. Auditing allows shippers to identify the carriers with the best rates and services, and when carriers know shippers are looking deeper than face value, it causes them to be more likely to collaborate, negotiate, and compromise on rates and fees in response to data-backed strategies and offers.
Myth 2. Internal Audits Save Money
Doing the work of auditing internally with current team members can save money in the short term. However, the actual cost of this parcel auditing and freight auditing myth is easy to see when looking at the big picture. It is often more cost-efficient to outsource auditing services to a skilled and experienced company dedicated to auditing work. This frees up team members to focus on things they are better trained to handle and leaves auditing to the pros.
Myth 3. Auditing Is Useless When Working With Only the Big Three Carriers
This parcel auditing myth can be particularly devastating because it lulls them into a false sense of security. Even when working with major carriers, shippers can still benefit from auditing parcel services to ensure they are getting a good rate, both in the short and long terms. There might be cases where a small company offers better rates and services, which would never come to light without auditing work done by supply chain management.
Myth 4. Parcel Auditing Results in Missed Deliveries
Another myth regarding parcel auditing and similar services is that they slow down shipments, lead to delays, and end up causing late deliveries. If not done properly, auditing work can lead to some delays and scheduling issues. However, when done by skilled and experienced auditing professionals, auditing omnimodal shipments can actually save time by ensuring deliveries finish strong with no issues so shippers finish strong and customers are satisfied.
Myth 5. Parcel Auditing Companies Sell My Data
Yet another fear many shippers might have when considering parcel auditing processes is the fear of personal and company data being sold and accessed. A reputable auditing company will have contracts and agreements that outline what will and will not be done with data and any information gained from their services. Reviewing these forms and agreements will put shippers’ minds at ease when choosing supply chain auditing technology.
Overcome the Costs and Fears of Parcel Auditing With the Right Solution and Partner
The heightened growth of parcel volume and costs in 2022 has had a significant impact on domestic and international shipping service providers as well as parcel auditing software providers. As costs climb, shippers must be much more mindful of where their money is going. The growing need to watch every penny and document where fees are rising and where costs are getting out of hand continues to be paramount. This pressure has led parcel shippers to search for ways to deal with cost increases, rising fees and expenses in a practical manner. Professional parcel auditing services can make a huge difference and help shippers maximize profits, streamline services, and lower costs throughout the supply chain network. Connect with Intelligent Audit today to see how specialized parcel monitoring and auditing services can help your company start saving.