5 Risks to Consider When Selecting a New Parcel Spend Management Shipment Auditor

The ability to track and analyze parcel spend is more important than ever. The costs associated with moving parcels from Point A to Point B are more easily monitored and controlled with a specialized shipment auditor. At the core of transportation management is the need to embrace modern parcel spend analysis and management practices. Here are a few risk considerations to keep in mind regarding auditing and analyzing parcels when selecting a new shipment auditor.

1. Scalability

In logistics,scalability refers to how adaptable parcel shipments are within a supply chain. As the demands from customers fluctuate, the resources and person-hours required must also adjust accordingly. That ability to scale offsets parcel spend by using technology and expertise to ensure resources are not wasted in excess during lean times, yielding higher profit margins.

2. Time to ROI

Naturally, every shipping manager wants a strong ROI, and seeing it sooner rather than later is a definite bonus. Without a robust analysis and auditing processes in place, the time between investment and profitable returns can be quite extensive. Parcel spend rates can be significantly impacted by the time lag in ROI. And the costs of parcels can vary widely, primarily if accessorials or special surcharges are assessed. As explained by Parcel magazine, "most shippers are keenly aware of how surcharges are impacting their transportation spend. Accessorial costs keep climbing and can now contribute to, on average, almost 40% of your total carrier expenditures." Fortunately, working with an experienced shipment auditor helps validate the charges are correct and discounts are applied so that staff allocate resources more efficiently. And it's also easier to understand what's happening, why parcel rates are changing, and what to do to pre-empt those changes as well.

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3. Ease of access in dashboards

Data is easy to come by but getting insights out of the data is often harder. Dashboards used to visualize data along the supply chain must be easily accessed by all. Having dashboards that are specialized for users to have all the relevant information they need once they login. cuts down on time wasted by finding relevant data and able to flow through reports to find areas wasted. Improving parcel spend rates and maximizing profits rely on dashboards that are easy to use and incorporate into the management process.

4. Customization of KPIs

Key Performance Indicators are a vital tool for shipping and parcel management in today's market. Logistics and shipping KPIs can help managers paint a clearer picture of parcel spend rates by developing customizable reports. These indicators can be tailored to target specific strengths or weaknesses within the network. Providing valuable data insight is one of the significant benefits of optimizing your network. Knowing your KPIs can set you on the right track for active risk mitigation within the load-management process.

5. Ability to Capture and Analyze Data in Real-Time

Embrace data analysis, real-time tracking, and faster communication is essential to maximizing profits and reducing parcel spend overall. Real-time data is better because it helps avoid losses, avoid missed or late deliveries, and improve invoice payment real time exception management. The faster data can be collected and utilized, the more valuable it is to the shipping chain. Real-time operations give transporters the upper hand.

Overcome Parcel Spend Risks With the Right Auditor

Dealing with excessive spending and waste when dealing with parcel transport is critical to the company's on-going success. Bleeding money through poor resource management, excessive expenditures, payment delays, and missed opportunities can spell disaster for shipping managers. Overcoming parcel spend risks and other expenses is more accessible with professional insight from a skilled and experienced shipping auditor. Connect with Intelligent Audit to get started.

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