UPS Signals More Uncertainty, Capacity Strains Through 5.9% 2022 GRI

The shipping and parcel transportation industry has experienced unprecedented growth for much of the past decade and especially in recent years, thanks to the increasing popularity of e-commerce shipping. The sheer size of the small parcel market alone has put an unanticipated amount of pressure on shippers to meet rising customer demands while dealing with tightening capacity, driver shortages, and unrelenting financial pressures. In the past few years, 100 billion+ mailpieces and parcels have been shipped across the United States to customers big and small. Same-day delivery service has a worth estimated at nearly $5 billion and is expected to grow for the foreseeable future. Major shippers spend a cumulative billions in the small parcel market and the utilization of small parcel auditing software to catch invoice errors is critical to hit transportation spend management goals and recover millions in incorrect billing, helping companies keep profit margins in tact. In this article, we'll talk about what small parcel auditing software can do and why shippers need to use such systems.

Defining Small Parcel Auditing Software

The technology boom led to many new small businesses and startups, offering consumers even more opportunities to buy things and make purchases online. More options, more product, more customers, and more money has created a competitive and complex marketplace. Keeping track of profits, expenses, and day-to-day functions within the supply chain remains difficult even during the best of times. This is where small parcel auditing software becomes essential for the modern supply chain network. With the continually increasing need to evaluate supply chain operations, auditing makes it easier to see where costs are out of hand and need better control and closer monitoring in addition to where carriers are failing as well which affects repeat customers. Automated parcel audit software analyzes shipping data and helps to keep keep the business financially healthy, even during uncertain times of economic instability and market volatility.

Why Shippers Need It: Problems With Manual Auditing and Invoicing.

Supply chain audits analyze every charge incurred during shipping and deliver a comprehensive report that managers and team members use to identify issues and take advantage of shipping cost reductions wherever possible. Small parcel auditing software does this with a specific focus on a large number of small parcels and one-off non-commercial orders that make up the bulk of e-commerce shipping today. The problems that come from relying on outdated methods such as manual auditing and processes can greatly impact the supply chain. The most common issues with small parcel auditing and freight auditing invoicing can include:

  • Highï back-office expenses that often go unaccounted for in the budgeting and auditing processes.
  • Limited insight in audits, as only so much can be calculated and traced manually.
  • Increased frequency of human errors that are overlooked in the areas of copying, recording, and calculations.
  • Too many invoices to process, which leads to back logs and missed financial opportunities.
  • Finite claims periods for filing chargebacks get missed and profits are lost.

Added Benefits of Automated Parcel Invoicing

By tapping into the power and flexibility of small parcel auditing software, shippers can more easily adapt and scale to meet shifting market demands. According toJOC.com,"U.S. parcel volumes are forecast to remain elevated as e-commerce continues its own double-digit year-over-year growth over the next couple of years. Investment firm Stifel expects total parcel volumes to increase 8 to 10 percent in 2021 and 4 to 6 percent in 2022." Taking advantage of auditing software for small parcel shipping can bring about many benefits, including but not limited to:

  • Identify and correct billing mistakes quickly before they lead to costly issues.
  • Better tracking of accessorials and smaller fees that often get overlooked.
  • Utilization of alternative fulfillment strategies, including zone skipping and hub injection.
  • Refunds for late deliveries and opportunities to save money from carrier mistakes or the shipper's own mistakes, helping shippers operate more efficiently with carriers yielding more sustainable, long term partnerships.
  • Complete visibility into the entire shipping operation and total financial costs involved.
  • Easy-to-use systems and dashboards that allow for data to be used efficiently.
  • Holding carriers accountable with data-backed management and historical tracking.
  • Better preparation for peak season and slow season shifts in the market through actionable insights based on data analytics.
  • Improved financial forecasting around costs, rate increases, and any surcharges.

As volumes ebb and flow and consumer demands shift and change, shippers must remain alert and on top of these evolving factors.

Start Using Small Parcel Auditing Software to Manage Your Total Landed Costs More Strategically

The increased volume of parcel shipping orders has seen unprecedented growth recently. The explosive growth of e-commerce shopping opportunities has led to a flood of small parcel shipping orders in the domestic supply chain network in recent years. The sheer size of the small parcel market today puts more and more pressure on shippers while they are still dealing with tightening capacity, driver shortages, rising fuel prices, limited resources, and continued financial pressures. Shippers who utilize small parcel auditing software can tighten their hold on profits and weather market instability and shifting consumer demands more efficiently. Contact Intelligent Audit today to learn more and to get started.

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