Shipping is a core aspect of every ecommerce business. But when shipping carrier errors occur you aren’t just losing money — your customers are getting frustrated as well.

A thorough parcel audit can reveal improvement and cost-saving opportunities that can significantly impact your shipping spend. However, choosing the right provider is crucial for maximizing your benefits. Contact Mindful Logistics LLC for professional help.

When you have an auditing team working for you, they can quickly comb through your shipping invoices and identify inaccuracies. They’ll know where to look and can help you recover overpaid amounts, which can result in substantial savings.

If you’re handling your own auditing, it can be time-consuming and challenging to manage alongside other business demands. In addition to the amount of time you or a staff member spends sorting through documents by hand, the process is also susceptible to human error. And that mistake could cost you thousands of dollars.

Using the right software makes it easier and faster to handle large volumes of data. The right tools can also make it easy to visualize and analyze the data, allowing you to find opportunities for improvement and cost savings in your supply chain.

Aside from identifying errors in billing, parcel audits also help you optimize your shipping methods. They can identify the best methods for shipping your products and even help you negotiate better rates with carriers, which can further lower your costs. And since efficient shipping operations lead to better customer satisfaction, they’re an investment worth making.

Another benefit of parcel invoice auditing is identifying unused services or discounts. Many small businesses overlook these opportunities, which can add up to substantial savings over the course of a year or more. Moreover, a professional can identify areas where you’re overpaying for services, such as fuel surcharges or residential delivery fees.

The last benefit of a parcel audit is ensuring your carrier’s service agreements are being adhered to. If a shipment is late, it can have a negative impact on your brand image and customer service. But if you have a trusted parcel audit provider, they can help you recoup refunds based on your Guaranteed Service Agreement.

It’s not surprising that most people don’t realize they’re leaving money on the table when it comes to their ecommerce shipping. That’s why it’s important to hire a qualified and experienced parcel audit team. TAN can ensure that you’re getting the most out of your ecommerce shipping, from identifying refunds to optimizing shipping strategies.

Data Analysis

Many companies are still relying on manual processes to collect, analyze and review their shipping invoices. This type of work is labor-intensive and time-consuming, not to mention expensive. By utilizing freight audit software, you can automate the process and focus on more important aspects of your business. In addition, you can discover more opportunities for savings and reduce overall costs.

For example, if your company is paying extra for dimensional weight charges that are not supported by the carrier’s data analysis, it could be possible to get these extra charges reversed. You may also find additional costs that can be eliminated, such as fuel surcharges. These types of savings are only possible when you have the ability to thoroughly review and audit your shipping invoices regularly.

Another common source of excessive shipping costs is overcharges for services such as lift gate fees, inside delivery and residential delivery surcharges. These fees can add up quickly, and it is important to understand the impact these added expenses have on your total shipping spend. A thorough freight audit can uncover these unnecessary costs and provide you with the information needed to challenge them.

Aside from the direct financial impacts of excessive shipping costs, there is also a significant cost to your brand. When customers have to wait for their orders to be delivered, they are less likely to buy from you again. That’s why it’s so important to get your parcel shipping audited and to ensure that you are getting the most out of your carrier contracts and service levels.

A thorough freight audit includes reviewing your weekly carrier invoicing for any billing errors and overcharges that could be affecting your shipping costs. A reliable freight audit firm will have the technology, expertise and systems to identify invoicing errors and proactively address them before they become bigger problems. In addition, the best freight audit providers will perform regular rate audits to help you avoid overpaying for carrier services. They can also assist you in negotiating your carrier contracts and unlocking loyalty or volume discounts that can help you lower shipping rates, as well as accessorial fee surcharges that can make your transportation costs more consistent and predictable.

Billing Error Detection

Invoice mistakes can quickly add up and cost your company money. This is especially true if you ship large volumes of small parcels, where a few cents here and there can really add up. To avoid costly errors, it’s important to have a comprehensive invoice audit process. This involves analyzing shipping invoices to identify any errors that may be impacting your costs. A good freight audit firm can automate this process to help you save time and money.

A high-quality freight audit partner can perform a line-item audit of each shipment to ensure the carrier is accurately charging you based on your contractual agreements and service standards. This allows you to recover unwarranted fees and overcharges that can erode your profit margins. They can also use this data to detect patterns in billing error and other issues that may be caused by the same mistake over and over.

While a single late delivery or misbilling might not seem like much of an issue, these errors can add up over time and result in thousands of dollars lost to unnecessary expenses. That’s why a quality audit firm will work with the carrier to fix these mistakes and refund the costs you paid. They’ll handle everything from negotiating your contract to submitting claims to get refunds for any errors found on each shipment.

Parcel invoice audits can uncover a number of cost-saving opportunities, including:

Using specialized software, the team at Zero Down conducts in-depth analysis of each and every shipping transaction to ensure that you are being charged properly based on your contract terms and service levels. This is done by comparing the information on each shipping invoice to the carriers’ pricing agreement. They then identify any errors and submit the correct invoice details to the carrier for credit refunds. In addition, all invoice and tracking data is uploaded to their web reporting application for end-to-end visibility. This includes detailed invoice reports and weekly tracker submissions to support all claim processing, invoice disputes and billing discrepancies. This gives you the confidence to know that your invoices are accurate and your shipping costs are optimized.

Claims Management

Shipping costs make up a significant portion of business expenses, so e-commerce companies need to ensure they’re not overpaying. Carrier contracts establish rates, surcharges, and conditions that impact shipping expenses. Effective parcel spend management includes negotiating carrier contracts, optimizing packaging for parcel shipping, leveraging automation, and utilizing data analytics. All of these strategies are essential for achieving cost savings and gaining full control over shipping operations.

However, if you’re not conducting regular audits of your small parcel invoices, you could be losing out on valuable refunds and service credits. Parcel audits are a great way to confirm all charges on your invoices are accurate, and if they’re not, you can file for a refund with the carrier.

The benefits of conducting a parcel audit go well beyond spotting errors. It also helps you determine whether your carrier is meeting the promises they’ve made in their contractual agreements. This can help you decide whether or not to renew your contract or find a new carrier.

A reputable carrier cares about their customers and goes out of their way to meet their obligations. Whether that’s through on-time delivery guarantees or customer service refunds, they are more than willing to make things right when you bring them up short. And if they’re not, you can use the evidence you find through an audit to negotiate better terms.

Conducting a manual audit is time-consuming and expensive. An employee would need to sift through thousands of documents, spreadsheets and invoices to identify all the billing errors. In addition, this process will interrupt other workflows and potentially result in lost revenue. Alternatively, you can use a parcel audit software program or outsource your auditing needs to a third-party provider.