5 Reasons Automating Parcel Bill Payment Makes Sense

by | Sep 25, 2018

3 min read

So many of the expenses we have now – think your mortgage, car payments, utilities, cell phone, just to name a few –are automatically paid electronically. It’s one of the modern conveniences afforded us by technology we have come to take for granted.

As a business leader, have you fully accepted such simplicity in paying your organization’s expenses? The answer is probably “yes, but not always.” Chances are how you pay your FedEx and UPS invoices currently fall under the “not always” caveat. Instead, it’s done manually and ad hoc.

But there’s good reason to change that. Here’s why automating your parcel bill payment makes sense.

  1. Consolidate the payment of all your parcel shipping accounts.
    • It’s not uncommon for companies, especially those with many accounts or multiple locations, to receive the equivalent of multiple invoices a day from FedEx or UPS. In fact, analysis shows our customers average 30 invoices a month over the past year.I know from personal experience the amount of work that requires. Frankly, it’s an inefficient use of time and resources when automated bill payment could do the work without the risk of errors or oversight.
  2. Establish a consistent process if you rely on multiple carriers – you use both UPS and FedEx, for example – or pay for multiple accounts.
    • The challenge of paying so many invoices for multiple accounts is further exacerbated when multiple carriers – and payment processes – are involved, from different payment methods to varied due dates. Simplify. The. Process. It can be done, and by automating bill payment, you can adhere to each carrier’s preferred payment method without added effort to your team. Plus, you’ll have a “single source of truth” for your payment history.Put simply (my favorite word), by taking this step – really, it’s the path of least resistance – you can even end up with payment files that can be imported into your ERP to further end unnecessary data entry and the inherent human error that comes with it.
  3. Get more of the audit credits you’re due.
    • By scheduling your payments to occur automatically, you can wait until later in each invoice’s specific payment window without risk. This matters when it comes to maximizing your refund credits.If you’re paying invoices immediately, or too early, you’re telling the carrier, “yes, these are accurate charges.” It’s easier for you or your auditor to ask for credits from carrier mistakes if you haven’t yet paid the invoice. (And, if you’re not auditing your shipping, we can help.”
  4. No more late fees.
    • Over the past 12 months, VeriShip customers paid more than $2.7 million in fees for paying the carriers. That’s wasted money going down the drain. And there’s an easy remedy: scheduled parcel payment maximizes the time you have your money in hand while ensuring you’ll never be hit with a late fee again.
  5. Use FedEx? Short pay is a necessary evil that gets easier.
    • You won’t have to make your best guess at accounting for your credits before you pay FedEx – also known as short paying your invoices. Parcel bill payment automation takes care of the math and ensures you don’t over or underpay the carrier. Timing is key: trying to reconcile invoices against payments can be tricky because FedEx adjusts the original invoice amount to reflect the approved credit.
  6. The convenience comes with more savings and operational efficiency at no added cost to you.
    • The best news: consolidating and automating the parcel bill payment process doesn’t cost anything. Contact us at VeriShip to learn more.

Elaine is VeriShip’s Chief Financial Officer.

Topics: Accounting & Finance, Bill Pay, Data Science
Topics

Check out related resources at Sifted.

[VIDEO] Sustainability-Focused Sifted Software Demo

[VIDEO] Sustainability-Focused Sifted Software Demo

The transportation industry is at a global tipping point. Sustainability is no longer a nice to have…it’s a must ...
Read More >
[INFOGRAPHIC] The Fuel Surcharge Reality You Can’t Unsee

[INFOGRAPHIC] The Fuel Surcharge Reality You Can’t Unsee

The Reality FedEx and UPS have upped their ground fuel surcharges 9 times in the first 90 days of 2022 - and the ...
Read More >
[VIDEO] The Road to Sustainable Shipping

[VIDEO] The Road to Sustainable Shipping

Did you know that the transportation sector poses a serious problem to the planet? In fact, 29% of all domestic ...
Read More >
Shipping Greener: Carbon Neutrality and Certification

Shipping Greener: Carbon Neutrality and Certification

Sustainable shipping isn’t just good for the environment, it’s good for your business. Get started on the path to carbon neutrality today with our eco-friendly shipping guide.
Read More >
What Your Shipping Carbon Footprint Means and How to Calculate It

What Your Shipping Carbon Footprint Means and How to Calculate It

Keeping your shipping sustainable while reducing carbon emissions doesn't have to be complicated! And it starts by measuring your carbon footprint. Here's what you need to know as a parcel shipper.
Read More >
Consumer Report: How much do shoppers care about eco-friendly shipping?

Consumer Report: How much do shoppers care about eco-friendly shipping?

It’s no surprise; consumers are becoming more environmentally conscious. They’re taking reusable bags to the ...
Read More >
What is Logistics Intelligence?

What is Logistics Intelligence?

Every business wants to offer fast delivery, constant product availability, and excellent customer service. ...
Read More >
15 Things You Need to Know About Reverse Logistics

15 Things You Need to Know About Reverse Logistics

What Is Reverse Logistics? A clear reverse logistics process for returned products is essential whether you run ...
Read More >
Shipping Insights: LTL vs. Parcel Shipping

Shipping Insights: LTL vs. Parcel Shipping

Shippers should always be on the hunt for optimization and cost-reducing shipping methods. And one way to ensure ...
Read More >
Beyond the Trend: Blockchain Technology and Parcel Shipping

Beyond the Trend: Blockchain Technology and Parcel Shipping

Blockchain is driving profound positive change in the parcel industry. Based on transparency, trust, and traceability - blockchain technology brings new opportunities for managing shipping, supply chains, identity management, plus more.
Read More >
How 3D Printing Is Transforming Parcel Shipping

How 3D Printing Is Transforming Parcel Shipping

We know what you’re thinking. 3D printing? What does that have to do with parcel shipping? Well, more than you ...
Read More >
Autonomous Delivery: The Future of Last Mile

Autonomous Delivery: The Future of Last Mile

No drivers. No passengers. Just faster delivery. Yep, autonomous delivery is all about robots. Last mile ...
Read More >

How Sifted Works

Connect to
your account

Sync
your data

Power your
dashboards

Get Your Logistics
Intelligence Demo

Strategic ways to prevent loss down the line

Services you could be utilizing right now for savings

Ways to cut material costs without cutting quality

Are you an FBM (fulfillment by merchant) Amazon seller?

Check out our Marketplace Intelligence solutions to protect your bottom line.