Small Parcel Audit is an essential part of a business’s shipping process. However, manual small parcel audits can be time-consuming and expensive, especially if done in-house.
Whether you use an internal team or external software, the basics are the same: review carrier invoices for billing mistakes and overcharges. Then, recover eligible refunds.
The growth of e-commerce and the explosion of consumer shopping opportunities has led to a massive increase in small parcel shipping volumes. As a result, the domestic supply chain network is strained to the max. Keeping costs low and operations efficient is challenging in the best of times, but it’s even more difficult with a constant influx of parcel shipments. That’s where small parcel auditing comes in, allowing shippers and 3PLs to uncover hidden savings and optimize their shipping strategies.
Parcel freight auditing can save businesses thousands of dollars in lost revenue and erroneous charges. With a little vigilance, it’s possible to identify and correct issues like mislabeled packages or inaccurate weight measurements. This allows companies to slash their shipping costs and supercharge their profitability. In addition, these errors can be used as leverage to negotiate better rates and contract terms with carriers.
To reduce the likelihood of error, a thorough parcel audit can cover every element of a carrier invoice, from shipment data to additional service charges and accessorial fees. This includes verifying parcel information, such as size, weight, and dimensions, as well as the rate plan details on the carrier’s website. It can also verify whether the shipment qualifies for zone 4 pricing or any other rate discounts that could be applied. In addition, the parcel audit can ensure that all charges are accurately billed and that there are no unauthorized changes made to the bill.
Small parcel auditing is not just a tick-box item on a to-do list; it’s a savvy business strategy that helps cut shipping costs, streamline operations, and elevate customer satisfaction. It’s especially crucial when it comes to nurturing strong relationships with carriers, as they appreciate companies that consistently get the invoices right and pay them on time. This trust can lead to more responsive service, faster deliveries, and improved negotiating power in contracts.
Using a powerful parcel audit tool, like Intelligent Audit, can be a big help in cutting costs and optimizing your shipping strategy. The software scans each invoice for potential errors and flags them instantly so that you can spot and correct them before they become costly mistakes. It’s also easy to track the results of your audit and get timely refunds.
Overcharges
Small parcel auditing may seem like a minor detail in the bigger picture of supply chain management, but it’s actually a powerful strategy that can save businesses thousands of dollars and improve shipping operations. The process compares rates negotiated with carriers against invoices to detect overcharges and errors. By identifying these issues and securing refunds, companies can cut costs and improve shipping efficiency.
A thorough small parcel audit identifies overcharges and errors in shipping bills and invoices, ensuring that businesses only pay for what they ship. Whether it’s due to inaccurate weight entries or misapplied shipping rates, these mistakes can add up to significant losses over time. Small parcel audits help businesses identify these errors and reclaim funds that rightfully belong to them, saving them thousands of dollars in the long run.
Moreover, a comprehensive small parcel audit can identify opportunities to reduce shipping costs by leveraging carrier discounts and implementing best practices in the supply chain. For example, an auditor can reveal that a business is spending too much on ground transport when it could cut costs by switching to air shipping. The process also helps businesses leverage data to improve their relationships with carriers and negotiate better rates, resulting in significant savings.
As the e-commerce landscape continues to evolve, it is important for businesses to invest in their parcel auditing strategies. By implementing a robust process and leveraging the power of big data, businesses can streamline operations, reduce shipping errors, and ensure that they are only paying for what they actually send.
By partnering with an experienced provider of parcel audit services, companies can ensure that they are maximizing their shipping refunds. Outsourcing the process frees up internal resources to focus on other priorities, while delivering accurate and timely results. Additionally, a reputable provider can automate the entire process and ensure that all eligible refunds are recovered within the required timeframe. This can help save significant time and effort for businesses that are struggling to keep up with the demands of e-commerce. By taking advantage of these benefits, businesses can improve shipping performance and boost profits.
Errors
Businesses benefit from small parcel audits by detecting errors and overcharges in shipping invoices. This process can be done manually or through automated software programs. Manually reviewing invoices is time-consuming, but using software programs increases accuracy and speeds up the process. It also reduces the amount of work needed to identify savings opportunities.
Errors in shipping invoices can cost you money, so it’s important to catch them quickly. These errors include billed address correction fees that aren’t eligible, extra charges for dimensional weight, and discounts that weren’t applied. These errors can add up and result in significant shipping costs, especially if you have thin margins. Performing regular small parcel audits will ensure that all charges and fees are accurate, and will save you money in the long run.
Another benefit of small parcel audits is that they help you reclaim overcharges. Many carriers offer refunds for billing errors, and it’s important to make sure that these are requested on a timely basis. This will allow you to keep your shipping costs down and avoid any penalties from the carrier.
Getting small parcel audits right is essential for any business. Not only does it save you money, but it shows your carriers that you’re a partner that is attentive to their contracts and agreements. This can open the door to renegotiate terms and advocate for better conditions.
Whether your company conducts a small parcel audit through manual methods or with automated software, the results are the same: savings. These savings are not only the result of identifying overcharges and reclaiming refunds, but also improving overall logistics performance. The real-time data provided by small parcel audits allows you to spot exceptions and billing errors as they occur, preventing them from turning into bigger financial headaches. In addition, it helps you optimize your shipping operations, enabling you to achieve even greater shipping savings and improve customer satisfaction.
Refunds
Small parcel audits are an effective way to save money on shipping costs. They identify errors like dimensional weight overcharges, address correction surcharges that aren’t justified, and residential delivery charges on commercial items, and then request refunds from the carrier. This process takes a lot of time and effort, but it can save your business a significant amount of money. It’s also a great way to develop solid relationships with your carriers, which can help you negotiate better rates in the future.
While shipping carriers provide excellent delivery services, they aren’t without flaws. Overcharges and mistakes in billing can add up to huge expenses, eating into your profit margin. A small parcel audit can spot these errors by thoroughly reviewing each invoice. In addition, it verifies rates negotiated with the carrier and ensures that discounts are applied correctly.
A specialized software program can perform this task more quickly than a team of employees. Some companies even offer a subscription model that allows customers to pay for their service and use it as much or as little as they need. Some providers even offer discounted pricing options for charitable organizations, education institutions, and government agencies.
The real value of small parcel auditing is the actionable insights it provides. These insights can be used to renegotiate carrier contracts and improve shipping strategies. In addition, the savings you generate through the process will increase your bottom line and alleviate the financial pressures caused by rising fuel prices and driver shortages.
When you outsource your parcel auditing, you’ll have access to expert teams and sophisticated tools that can detect savings opportunities more effectively than in-house staff. They can also leverage data science to identify anomalies in your parcel shipping data and uncover hidden efficiencies.
Small parcel auditing can help you save up to 5% on your transportation budget. Whether you are a small or large business, this can make a big difference to your bottom line. By identifying errors and overcharges, you can save yourself a significant amount of money. Moreover, it can also help you avoid costly mistakes and maintain a healthy operational model that will sustain long-term profits.