Exploring Parcel Spend Management & The Benefits for High Parcel Shippers

Parcel spend management is a comprehensive solution designed for companies, particularly those with high parcel activity, to achieve significant cost savings and operational efficiencies and controls. 

The Challenges of High Parcel Activity

Managing high parcel shipping activity is extremely complex, and companies often lack dedicated resources to navigate many of intricacies beyond getting the packages out the door. But this lack of resources leads to inefficiencies, overlooked cost-saving opportunities, and financial leakages. And the larger your operation, the more that slips through the cracks.  

Consider a simple and common scenario: You might maintain hundreds of accounts with multiple carriers. Do you know if you're using all of them? You should, because you're paying for them. Parcel spend management (PSM) delivers the data you need to easily see something like unused accounts (and what they're costing you). This example might be the easiest leakage point to identify and fix. For companies with a PSM solution, it's one of many, many completely unknown issues they'll probably uncover. 

In the face of these challenges, companies with high parcel activity need simple and practical solutions to maintain control, optimize costs, and ensure adherence to regulations and agreements.

A Best-Practice Approach to Managing Parcel Spend 

With Cass, parcel spend management involves a streamlined process that starts with the intake of invoices through EDI. This ensures efficient data collection from all carriers, setting the foundation for a comprehensive audit and immaculate reporting. The audit encompasses variables, from identifying billing errors to tracking performance metrics, guaranteeing data accuracy and completeness. We normalize the data, provide top-notch reporting in CassPort, and seamlessly integrate customized reports into your ERP or other preferred platforms.

Data-driven insights are the heart of this simplified approach. Historical analysis of shipping data lets you identify patterns and areas for improvement. Decision support is another critical component, leveraging insights to guide strategic planning, negotiations, and operational adjustments. These insights are brought to life through user-friendly data visualizations, making complex data sets easily digestible and encouraging collaborative discussions among teams.

Real-world Examples and Case Studies

These success stories underscore the tangible benefits of Cass's parcel spend management solution, revealing substantial savings in various areas:

• 95% of spending on unnecessary insurance eliminated – One client identified that employees were spending $600,000 a year by insuring individual packages -- even though the company was self-insured. Efforts to rectify this resulted in a staggering 95% reduction in this unnecessary cost.
• $140,000 in late fees recovered – After partnering with Cass, a manufacturing client discovered they had unknowingly spent $140,000 on late fees over 14 months. With our assistance, they successfully reclaimed these charges.
• $110,000 saved by closing inactive accounts – Recognizing the financial drain of over 100 open but inactive accounts, Cass facilitated their closure, saving the client $110,000 in annual service charges.

These examples exemplify the power of visibility and actionable data, showcasing how the Cass approach to parcel spend management can drive remarkable savings, procurement opportunities, and more for high-volume shippers.

Proactive Parcel Spend Management with Cass

Companies often struggle to manage high parcel activity effectively, as keeping track of multiple carriers, rates, hidden charges, and compliance with regulations and agreements becomes increasingly challenging. However, there is tremendous potential to identify wasteful spending, gain operational insights, and achieve greater control of your parcel spending. We simplify this process by offering a streamlined approach that begins with invoice intake through EDI and culminates in actionable insights derived from historical and predictive data analysis.

Discover more about the high ROI of Cass's parcel spend management solution by contacting us today.