Whether it’s an address correction charge, a pesky dimensional weight error, or a duplicate shipment billed more than once, small parcel invoice errors can add up and cost your logistics business money. Fortunately, there are ways to catch these mistakes and secure refunds from carriers.
One way is through small parcel auditing, a process that examines shipping data and invoices to identify savings opportunities. But how exactly does it work? Click Here to learn more.
Small parcel auditing is an important tool for companies that ship goods in envelopes, poly mailers, and boxes. Using this tool can help companies save money and time while also improving efficiency. By auditing shipping carrier invoices, businesses can catch any billing errors and negotiate refunds with the carriers. In addition, companies can use the information gathered through audits to streamline their carrier usage.
While one late delivery or misbilling may not seem like a big deal, it can quickly add up. For this reason, it is essential for any business to perform regular small parcel audits. These audits can identify problems such as duplicate billing and incorrect address correction charges. Additionally, they can also detect any overcharges on dimensional weight, which is often overlooked by shipping carriers. By catching these issues, businesses can save money and avoid frustrating customers.
Another benefit of performing a small parcel audit is that it can help to build a strong relationship with the shipping carriers. Carriers appreciate companies that are consistent in getting their invoices right and paying on time. In turn, they are more likely to offer faster deliveries and negotiate contract terms that reflect the business’s needs.
Parcel audits can help businesses recover overcharges from shipping carriers such as FedEx and UPS. Previously, companies had to conduct these audits manually, but now, they can automate this process and gain visibility into all of the details of each shipment bill. This can help them to spot overcharges such as extra fees for address correction or Saturday charges that don’t belong, and it can help them to negotiate refunds with the shipping carriers. The resulting savings can help businesses to improve their bottom line and boost overall profit margins.
Monitoring
When you monitor your shipping operations, you can identify and correct any mistakes that may be impacting your profits. This is a crucial step for keeping your operation lean and your costs in check. It’s also a smart way to build a strong relationship with your carrier.
While shipping carriers like FedEx and UPS offer excellent delivery services, they aren’t without their flaws. Often, these companies make mistakes with shipping invoices that result in overcharges and lost opportunities for refunds. Shipping invoice errors can include unauthorized surcharges, duplicate charges, inaccurate weight entries, and misapplied shipping rates. These errors can add up over time and cost your business a lot of money. Fortunately, you can easily spot these errors and recover any overcharges by conducting a small parcel audit.
A small parcel audit is a comprehensive review of shipping invoices and rates to identify any mistakes that might be impacting your bottom line. This process can include manual invoice review or automated software programs. Manual methods involve reviewing shipping invoices and identifying any errors that can be recovered, while software programs digitally analyze each invoice and find opportunities for savings.
Whether you choose to perform an automated small parcel audit or manual invoice review, the key is to ensure that your team has the tools and resources they need to succeed. For instance, some software solutions allow you to customize reports and dashboards so that you can get the most out of your data analysis. Others use artificial intelligence and anomaly detection technologies to turn tedious data collection into a seamless, automated affair. These advanced tools work tirelessly to uncover shipping mistakes and give you an edge in maximizing your profits.
Using an automated small parcel audit solution can save you time and money by eliminating the need to manually sift through shipping invoices and shipping rates. This method also provides you with a complete picture of your shipping volumes and carrier performance, so that you can make more informed decisions and optimize your logistics strategy. In addition, regular small parcel audits can strengthen your relationships with your carriers by resolving issues promptly and amicably.
Assurance
With all the demands on logistics professionals, it can be difficult to keep track of shipping invoices and carrier service failures. That’s why small parcel audits are a savvy business strategy that helps cut costs and keep your shipping processes running smoothly.
Invoice errors and overcharges can drain your shipping budget before you even realize it. Fortunately, many of these mistakes can be corrected by conducting a thorough freight audit. These audits ensure that your shippers are only paying for services they actually receive and that you’re getting all the discounts you’re entitled to.
Some of the most common errors on shipping invoices include avoidable address correction charges, erroneous dimensional weight charges, duplicate charges, zone validation mistakes, proof-of-delivery issues, and missed negotiated rates. By identifying and correcting these errors, you can save your shipping team valuable time and money while increasing your leverage in future carrier contract negotiations.
Moreover, your freight auditing process can be made even more efficient with the help of technology like AI and anomaly detection. Imagine your manual auditing process transformed into a high-tech logistics sidekick that tirelessly gathers data in real time. It’s like having an extra person on your team to take care of the busy work so that your skilled staff can focus on other pressing matters.
While automating your shipping audits can seem costly, the investment pays off in the long run. By choosing a quality provider that offers both fixed monthly fees and a fee structure based on the amount of refunds it recovers for you, you can enjoy a more sustainable auditing process with less risk and a higher return on investment. If you’re considering making the switch to automated software, look for one that provides real-time analytics and a user-friendly interface. It’s also important to note that not all freight auditing software is created equal. Choose a solution that offers industry-leading audit accuracy and a proven track record of helping businesses recover millions in refunds. Zero Down is one such company that offers powerful software with advanced analytics to help businesses optimize their transportation networks and uncover shipping savings.
Accuracy
Small parcel auditing might seem like a minor detail in the grand logistics scheme, but it’s a game changer when it comes to saving shipping costs. By identifying and requesting refunds for errors like dimensional weight overcharges, address correction surcharges that aren’t justified, or residential delivery charges on commercial items, businesses can make big savings.
These savings help alleviate financial pressures caused by rising fuel prices, driver shortages, and limited capacity. The result is a more stable operating model that can weather market instability and shifting consumer demands.
In addition to preventing costly mistakes, regular small parcel audits can also improve service quality. This helps foster solid relationships with carriers, which can lead to improved rate negotiations and long-term financial benefits.
A recurring small parcel audit process can highlight issues like mislabeled packages and inaccurate volumetric weight measurements that might not otherwise be noticed. This gives shippers the opportunity to address these problems before they become a significant problem and recover funds, as well as take steps to correct the error and prevent it from happening again.
As a 3rd party, auditors can take on the burden of tracking and monitoring invoices for errors, identifying refund opportunities, and communicating them to carriers on your behalf. This allows you to focus on the other important parts of your business, knowing that your freight is in good hands.
Small parcel audits can be done manually or with software. Many companies choose to use software for a comprehensive and cost-effective approach. This software is designed to track shipping data in real-time, allowing you to identify and rectify errors, overcharges, and other discrepancies before they have a chance to cause major disruptions. It’s also capable of spotting additional services or charges that you may not have been aware of, such as storage fees and other accessorial charges.
By ensuring that every dollar is being used to its best advantage, a small parcel audit can maximize your company’s profitability and reduce costs. It’s possible to save up to 15% of shipping expenses with the right tools and insights.