Topics: Freight Audit & Payment, Parcel shipping, Parcel Spend Management
In an era where data reigns supreme, we find ourselves swimming in an ocean of information like never before. But what do we do with this data? How do we harness its power? The answer lies in the art of deriving insights. For high-volume shippers, insights into your parcel data are critical to controlling costs, increasing efficiency, and mitigating risk.
The 19 Insights Gained from a Parcel Spend Management Solution
Today's parcel spend management (PSM) solutions go far beyond the basics of invoice processing and auditing by offering you a 360-degree view of your shipping activities. With this view, you have all the insights you need manage your parcel costs. Here's a list of some of the powerful insights our enterprise clients are making powerful use of.
1. Detailed, charge-level costs
Forgive the obvious, but we have to start with the most basic element of the parcel business intelligence delivered by PSM: visibility to every charge for every package. Powerful dashboards are usually available to help you quickly see what’s most important to you. Dashboards will also make it easy to compare carriers and identify sudden spikes or anomalies. Shippers who monitor these can make immediate budget adjustments to stay within the financial framework.
2. Identification of billing errors
Invoice auditing is a cornerstone of parcel spend management solutions. Overcharges are flagged instantly, paving the way for swift problem-solving and potentially saving you considerable money.
3. Mistakes made at tender
Do you know what it’s costing you to use a bad zip code over and over? Or not telling the carrier who to bill? Are you choosing Air for Zone 2, for packages that never get on a plane? These mistakes were costing some of our clients hundreds of thousands of dollars. Visibility to these fixable mistakes will pay for your parcel spend management solution very quickly.
4. Accessorial costs & trends
Examining these recurring or unexpected fees helps you develop cost-cutting strategies. Are your costs for address corrections sky-high? Or maybe you’re paying weekly charges for accounts no longer needed or in use. such as negotiating rates on particular surcharges or correcting mistakes being made at manifest.
5. Carrier performance metrics
Knowing how carriers perform is essential for long-term partnerships. Most parcel spend management platforms monitor delivery times and reliability metrics. This allows you to assess carrier performance and make informed decisions about carrier partnerships.
6. True cost of the GRI
As you know, a 5.9% GRI does not cost you 5.9% This increase is for transportation only. To project the actual cost to you, you need historical data on surcharges. Skipping this essential analysis results in surprises – and not the kind that make you happy. Shippers get this data in their PSM reporting.
7. Identification of fraud or misuse
Anomalies in patterns can be a red flag for fraud or misuse. Monitoring for these unusual activities typically leads to the quick elimination of these costs, and maybe changes in security or verification processes.
8. Analysis of shipping routes for cost-efficiency/zone skipping
Analyzing routes for cost and time efficiency, identifying bottlenecks or high-cost areas, and suggesting route adjustments help streamline shipping. Smart warehouse positioning can also facilitate zone skipping.
9. What your GSW is costing you
The Guaranteed Service Waiver, where you waive your right to a refund due to service failure, is becoming more and more popular. But if you have a GSW, you still should know what your refunds would have been if you didn’t have that in place.
10. Shipping volume trends & their impact on costs
Correlation analysis between volume changes and costs allows for predictive insights into future trends and their potential impact on finances.
11. Seasonal fluctuations in shipping costs
Identifying cost changes tied to seasons or events provides insights into demand fluctuations during peak times. This information aids in inventory and logistics planning.
12. Last-mile delivery efficiency
Last-mile delivery is the most expensive part of the shipping process. Identifying inefficiencies opens up improvement opportunities that enhance customer satisfaction and reduce expenses.
13. Identification of potential negotiation points with carriers
Understanding every aspect of costs and service levels can help highlight opportunities for negotiation.
14. Impact of global events on shipping costs
By easily seeing your costs month to month—and broken down by origin, destination, charge type, etc.—you’ll understand exactly how weather, politics, and other events outside your control impact your costs.
Analyses reveal how such events affect shipping, offering insights for risk mitigation and planning for future global events.
15. Forecasting for future shipping needs
Parcel spend management solutions provide critical data to predict future shipping volumes and costs. They equip you with the insights necessary for effective and strategic planning.
16. Package sizes vs. billed costs
Understanding the cost implications of various package dimensions leads to actionable recommendations for optimizing packaging to reduce costs.
17. Carrier performance
See how many packages are being delivered on time and analyze how delivery performance fluctuates based on factors like service selection, zone, etc.
18. Carrier comparisons
Download data to compare rates, service levels, billing errors, and more to identify carrier mix or negotiation opportunities.
19. Insights into the efficiency of return logistics
Efficiency in returns can dramatically affect customer satisfaction and costs. Analyses highlight challenges or bottlenecks in return logistics and offer suggestions for streamlining the process.
Leveraging These Insights
So, you've got the audit savings and the insights—what's next? Real-life stories demonstrate the power of these platforms and the people behind them who help you make sense of the data and develop smart strategies. For example,
- A self-insured client realized its employees were buying insurance on packages. This led to eliminating over half a million dollars in wasteful spending.
- Another Cass client discovered they were paying an extra $5 per package because they were using larger boxes purchased at a discounted rate.
By leveraging our services, the world’s largest shippers and many of the leading e-commerce companies realize significant benefits beyond cost savings. Insights from our parcel spend management platform will optimize your shipping process and enhance customer service.
Taking the Next Step in Shipping Excellence
Harnessing the vast sea of data may seem insurmountable, but it becomes achievable with Cass’s parcel spend management solutions. Each insight gleaned from our parcel spend management solutions holds the potential to make a world of difference for high-volume shippers just like you. It's not about overwhelming complexity; it's about finding clarity and empowerment in your shipping operations. Take a moment to imagine the results you could achieve. Learn more about the Cass parcel solution.
