Parcel carrier invoices are like reading the fine print: you really don’t want to take the time to try and fully understand the devil in all the details because it takes too much time and effort–not to mention confusing, often frustrating and overwhelming.
But, if you fail to do your due diligence, it can cost you in the end. Depending on the size of your business, the number of packages you ship and where your packages are sent, common billing errors can run up thousands of dollars.
It’s not an easy fix as billing invoices can be over 100 pages. They are written to intentionally be confusing–a trigger for an instant migraine.
Common billing mistakes take on many forms:
- Delivery services can inadvertently mark a package for commercial delivery instead of residential or vice versa. This means an additional $3 or $4 for each mismarked package is added to your invoice.
- A surcharge is usually applied to a package with an invalid address that requires a correction. However, the surcharge only applies if the driver is unable to deliver the packages–otherwise, that charge is invalid.
- Dimensional weight surcharges are still relatively new practice and because dimensional divisors change, it can lead to billing errors. But if you know the dimensions of your package, these errors are easily detectable on an invoice.
- Depending on your carrier, if you print out a shipping label for a package that is not sent out you can still be charged for it on your invoice. UPS charges based on labels created. So if you use their service, it’s imperative you check your invoices to see if you have printed labels for packages that have not been shipped.
- Your company is entitled to a refund if your package arrives late–even by a few minutes. But the window to recover that cost is small, complex and can require multiple steps.
How to combat the problem
Metrics and Key Performances Indicators (KPIs) are the key components to managing your shipping and controlling costs, but they demand resources and time.
A recent survey to assess the challenges shippers face was conducted by Veraction. It revealed that shippers need better analytics and processes to captures those numbers. Currently, many shippers say their methods are too burdensome and produce unsatisfactory results.
One solution is a continuous improvement process known as spend analysis. It involves leveraging data to evaluate current performance, comparing it against an improvement plan and developing a process to drive the desired improvement.
Consistent data and analytics are critical to making this work, especially in the following three areas:
- Descriptive analytics offers a solid history of their past parcel spending and performance.
- Predictive analytics looks to see what might happen in the future and isolates circumstances that can either prevent or facilitate improvement.
- Prescriptive analytics takes all available information and targets specific approaches or actions which can be pursued.
While that is a solid game plan, how effective and efficient you are at taking information, turning it into insights and then to action will be the difference between satisfactory results–or not.
Reveel is Well-Equipped to Help Your Company
If you lack the internal resources or technical capabilities, finding someone who does may be an option you should consider seriously. And that’s where a company like Reveel can help save your company money.
Think about it. Auditing your statements means tracking every package you shipped, ensuring they were delivered, then comparing it against your carrier’s service guide to determine if was delivered on time or not. If you feel you have discovered an error, it still requires a phone call and who knows how long it will take dispute process.
Reveel can do all of this for you. Its invoice auditing service consists of a 45-point inspection process that leaves no stone unturned to uncover ways to save.
For example, each day an average 3 to 5 percent of packages shipped arrive late and a business only has 15 days to request a refund. If you discovery a late delivery, you must file an electronic request and they are often denied. Reveel will take care of this process from beginning to end. Its data shows a recovery rate that is at least 10 percent higher for its clients compared to those who go it alone. This translates into a recovery rate of 1 to 3 percent of their total shipping costs from late deliveries.
Did you know that Reevel’s invoice auditing service saved the San Diego Zoo $13,000 for the delivery of an animal that was only a few minutes late?
Reevel’s software platform also can identify the variety of ways that shipments were billed or surcharges were applied incorrectly. This can range from a few dollars up to $75 a package.
Catching errors and recovering your money is not all that Reevel can do for your company. It can take a deep-dive into all your shipping data to uncover inefficiencies that can lead to saving your company even more money in labor costs.
