With e-commerce sales on the rise, last-mile delivery is essential for customers and business reputation. To keep shipping costs low and operations running smoothly, many businesses are opting for parcel invoice audit services.
Parcel auditing is the process of reviewing carrier invoices to identify billing errors and opportunities for savings. A good parcel audit service offers consolidated carrier invoices and automation, resulting in 15% cost savings for retailers. Keep reading the article below to learn more about Small Parcel Audit.
The cost of shipping is a significant portion of many e-commerce businesses’ operating expenses. Whether due to rising rates, supply chain issues, or labor shortages, these costs can significantly dent revenue and make it difficult to stay profitable. That’s why it’s essential for high-volume parcel shippers to regularly audit carrier invoices and proactively seek refunds for incorrect charges or missed service promises. Parcel invoice audits can be conducted internally or through a parcel auditing company, and can include everything from reviewing billing adjustments to identifying erroneously applied accessorial fees.
A quality parcel audit provider will review your shipping data on a weekly basis to identify and address rating errors promptly. This prevents costly mistakes from impacting your bottom line, and provides the flexibility to correct errors before they occur. Frequent rate audits are especially important during periods of contract rate changes or when onboarding new accounts.
As the industry leader in parcel invoice audits, we know what it takes to get the job done right. Our expertise and 40+ years of experience give us an edge in securing the best refunds possible for our clients. We have three different options for you to choose from: manual audits, parcel audit software or parcel audit services. Manual audits involve an employee going through the entire list of invoices by hand, which can be time consuming and prone to error. Parcel audit software eliminates the need for human error, but requires a certain level of expertise and training to use effectively. Parcel audit services essentially let you outsource your parcel auditing to a third party, which can be the best option for high-volume shippers.
Having the ability to monitor your shipping data and identify potential areas for improvement can be a game-changer for e-commerce companies. Taking the time to audit your shipping invoices and hold carriers accountable for their promises can save you thousands of dollars in lost revenue.
Frequent Audits
When it comes to reducing shipping costs, small parcel auditing is a critical investment that yields significant returns. Its value lies in its ability to identify and recover overcharges, improve shipping processes, and uncover savings opportunities. Investing in a logistics platform that prioritizes a robust invoice audit process, conducting frequent and thorough audits, and leveraging automation are best practices that can maximize the benefits of a parcel audit.
Invoice errors can have a significant impact on your bottom line, and they often go undetected. These errors include billing issues, miscalculated surcharges and fees, missed discounts, and inaccurate shipping rates. These mistakes can significantly inflate your transportation spend, eat into your profits, and negatively impact your company’s financial health. Parcel invoice audits can identify these errors and quickly resolve them, preventing unnecessary expenses from eating into your bottom line.
Additionally, comprehensive analysis of shipping data can help you reassess your shipping strategies. Streamlining processes and optimizing your shipping strategy can reduce operational costs, improve delivery reliability, and increase customer satisfaction. In addition, using data-driven negotiations with carriers can lead to better shipping rates and more favorable shipping terms.
These perks of an effective logistics platform are why it’s important to partner with a parcel audit provider that prioritizes frequent and thorough auditing, provides real-time transaction data from carriers, proactively identifies saving opportunities, and offers flexible pricing options to match your business’ unique shipping needs. The right provider can also offer extensive support and strategic account management for your shipping operations, further enhancing the overall effectiveness of your parcel audit.
A top-rated small parcel audit company, they understand that every shipping pattern and volume is different. That’s why they provide a wide range of services to accommodate all businesses and deliver superior results. In addition to their technological prowess and industry expertise, they are renowned for their dedication to client satisfaction. They address client queries promptly and offer guidance and insights, ensuring that their clients fully capitalize on the benefits of their parcel auditing process. In addition, their team of seasoned professionals uses automated solutions to streamline the auditing process and reduce human error. This combination of efficiencies and experience ensures that every audit is thorough and accurate, resulting in significant savings for your business.
Automated Solutions
For many e-commerce companies, shipping costs account for anywhere from 10-15% of total expenses, making it crucial to control them. However, up to 20% of carrier invoices contain errors that can lead to massive overspending and impact profitability. Having a comprehensive process for auditing these invoices helps to catch and resolve those mistakes, putting more money back into your business’s pocket.
The most effective way to audit your parcel carrier invoices is with an automated software tool. This type of technology scans invoices for discrepancies and compares them against details outlined in your contract with the carrier. This approach is much faster and more accurate than manual checks, enabling you to find and recover overcharges that would have otherwise gone unreported.
Using this technology also helps you to better predict future costs and identify optimization opportunities that can improve operational efficiency. Having access to this data allows you to more effectively negotiate with carriers and manage shipping budgets with greater confidence.
A top-performing transportation management system (TMS) integrates with your parcel auditing solution to provide a seamless and comprehensive experience that helps you take full control of your parcel shipping. The resulting visibility enables you to cut costs, optimize parcel dimensions, streamline processes, and make informed decisions that will impact your overall shipping strategy and financial performance.
In addition to a robust TMS, Zero Down offers a wide range of advanced solutions for parcel spend management. These include negotiating carrier contracts, optimizing packaging, leveraging automation and utilizing data analytics. With these strategies, you can achieve significant cost savings and gain full control of your shipping operations.
Carrier invoice errors are a hidden drain on your profit margins, causing you to pay for services that you don’t need or receive diminished service levels at the same price. A thorough shipping invoice audit, coupled with strong negotiating skills, can help you hold your carrier accountable and get the best deal on your services. There are three types of auditing methods: manual, software and services. Each one comes with its own pros and cons. Manual audits are time consuming and require extensive cross-referencing of invoices with your carrier contracts and other documentation. Parcel audit software and services can be more efficient and are backed by years of experience in shipment auditing.
Partner with Experienced Auditors
The right parcel audit provider can have a major impact on the effectiveness and efficiency of your shipping operations. Partnering with a provider that offers real-time data access, conducts frequent rate audits, delivers strategic account management, and provides comprehensive support for lost or damaged packages can lead to substantial cost savings and operational improvements. An experienced provider can also help you navigate new accessorial charges and other changes that may affect your shipping operations, such as implementing general rate increases or changing carrier pricing strategies.
The most obvious benefit of small parcel audits is that they can save your company money by identifying overpayments and billing errors. These errors can be caused by a variety of factors, including a mismeasured parcel, inaccurate rates, or unnecessary accessorial fees added to invoices. Identifying these errors allows you to file a claim with the carrier for refunds or credits. This can reduce your shipping costs by up to 15%.
Besides identifying overpayments, comprehensive invoice analysis can uncover opportunities for cost savings and optimization. By analyzing shipping data, you can take advantage of discounts and rebates offered by your carrier, streamline processes to reduce costs, and renegotiate contracts to secure better terms. Moreover, using data to predict future shipping trends allows you to make smarter purchasing and routing decisions that can further reduce costs.
A reputable carrier cares about your business as much as you do, so partnering with one that can support your retail success is essential. With the right partner, you can maintain compliance with shipping regulations, leverage your shipping volume as a bargaining tool, and secure competitive rates and discounted services that keep your shipping costs low.
When choosing a parcel audit solution, it’s important to understand the differences between the three types of solutions available. Manual audits are performed by employees, parcel audit software automates the process, and third-party audit services rely on third-party auditors to perform an in-depth review of your shipping invoices. Each of these options comes with its own unique set of pros and cons, so it’s important to select a solution that meets your needs.