SiftedAI Launch Day Demo - See What's New Register

Sifted logo

4 Things You Didn’t Know You Don’t Know About Parcel Shipping

by | Sep 14, 2020

3 min read

There’s always something new to learn, isn’t there? Just yesterday, I learned that the drawer under your oven is actually for keeping food warm and not for holding pots and pans. Who knew?

There are a lot of “aha!” moments like that when I talk with shippers about the ins and outs of their operations. There’s so much going on in their businesses every day that they don’t often get a chance to consider what they might be missing.

We all get caught up in the day-to-day tasks that distract us from lurking issues. When it comes to your shipping, though, keeping your head in the sand can cost you big money. It’s important to find out what you might not know, like…

1) …when your carrier makes mistakes.
With millions of packages handled every day, your carrier is bound to mess up every now and then. But when they do, they owe you money back for it. Most shippers don’t have the time or the patience to audit carrier invoices, combing through them to look for incorrect surcharges or fees. Though carriers continue to suspend service guarantees, surcharges that have been incorrectly applied can be a hit to your budget — so make sure that money goes back in your pocket.

2) …how much time you’re losing to inefficiencies — even tiny ones.
Every business has its time-sucking processes and often we’re so used to doing things that way that we don’t take the time to consider whether there’s a better, more efficient process. Take general ledger coding, for instance. You have to do it, but it takes a lot of time to do manually. Have you ever really considered exactly how much? Or carrier bill payment and account reconciliation — do they have to take so long? The next time you’re knee-deep in a tedious shipping-related task like creating reports, reviewing KPIs or modeling your shipping profile against rate changes, take a second to consider whether there’s another way or a solution that can help.

3) …how your shipping costs are allocated.
Just as important as understanding if you’re paying too much is understanding why you pay so much. Where is all that money going? Residential or delivery area surcharges? DIM weight? You already have this information, but you’re probably going to have to dig for it. It’s in your carrier reports and invoices, but organizing, comparing and analyzing all that data is going to take a lot of time — time you probably don’t have. The right tool can help you understand and visualize your shipping spend (and why it’s so much) so you can work to reduce it.

4) …how to prepare for what’s coming next, like the 2021 GRI.
Sometimes you’re forced to react to what happens (like in a global pandemic), but others you need to be proactive and prepare for what’s coming (like with the carriers’ annual General Rate Increase announcement). We won’t know which specific carrier rates are rising for 2021 — or by how much — for a bit longer, but we can make some pretty good guesses and start to make decisions that will prevent a blown budget down the line.

Remember, whatever general increase the carriers announce in the coming months, you should not use that number to budget for next year’s shipping. Focus on the individual rate changes within the GRI that affect your business most to better predict your 2021 shipping spend. Knowing your own shipping data and profile will help you prepare for the GRI — and anything else 2021 brings.

Not knowing what you don’t know about your shipping can cost you big time if you’re not careful, so make 2021 the year you start diving into your data and understanding your shipping costs. You’ll be a better budgeter, a stronger negotiator, and a smarter shipper because of it.

Think you know everything about surcharges? If you’re not sure, check out our latest eBook, 5 Budget-Busting Surcharges & How to Lower Them. You’ll learn what they cost you and how to get them under control.

Topics: Additional Handling Surcharge, Contract Optimization, Dimensional (DIM) Weight, Surcharges
Topics

Check out related resources at Sifted.

Solving Supply Chain Puzzles: How Logistics Intelligence Connects the Dots

Solving Supply Chain Puzzles: How Logistics Intelligence Connects the Dots

Political instability, environmental disasters, pandemics, and even trade policy changes can destabilize global ...
Read More
PARCEL Forum 2024: Key Takeaways and Insights

PARCEL Forum 2024: Key Takeaways and Insights

In September, PARCEL Forum ‘24 brought top professionals from the small-package industry to Dallas. They discussed ...
Read More
Unpacking the (True) Impact: 2025 FedEx & UPS GRI Analysis

Unpacking the (True) Impact: 2025 FedEx & UPS GRI Analysis

As the summer temperatures start to cool down, the shipping world heats up. Peak season looms. Demand ...
Read More
Supply Chain Contingency Planning: Using Logistics Intelligence To Mitigate Risks

Supply Chain Contingency Planning: Using Logistics Intelligence To Mitigate Risks

Globalization is slowing down, and the world is doing everything to fix it and reduce modern-day supply chain ...
Read More
2024 FedEx & UPS Demand (Peak Season) Surcharge Guide

2024 FedEx & UPS Demand (Peak Season) Surcharge Guide

Please note: This article focuses on Ground and Express charges. For a full breakdown of international and other ...
Read More
The 2025 General Rate Increase (GRI) is Coming… What We Expect and How to Prepare

The 2025 General Rate Increase (GRI) is Coming… What We Expect and How to Prepare

As the 2025 General Rate Increase (GRI) approaches, businesses across industries are bracing for the potential ...
Read More
Invoice Auditing 101: How to Audit FedEx & UPS Invoices Accurately

Invoice Auditing 101: How to Audit FedEx & UPS Invoices Accurately

Did you know that on select days annually, both FedEx and UPS pause their money-back guarantees? These blackout ...
Read More
PARCEL Forum ’24 – Sifted’s Roundup

PARCEL Forum ’24 – Sifted’s Roundup

This September, the supply chain’s leading experts will converge in Texas for PARCEL Forum ‘24, the premier ...
Read More
Network Optimization 101: The Impact of Carrier Diversification on Supply Chain Resilience

Network Optimization 101: The Impact of Carrier Diversification on Supply Chain Resilience

FedEx and UPS had the same GRI for 2024 at 5.9%. Down 1% from 2023’s 6.9% increase. American businesses are facing ...
Read More
How To Implement Artificial Intelligence To Boost Your Supply Chain Operations

How To Implement Artificial Intelligence To Boost Your Supply Chain Operations

By 2027, the global last-mile delivery market is expected to soar past $200 billion, up from $108.1 billion in ...
Read More
How Amazon Is Using AI To Become the Fastest Supply Chain in the World

How Amazon Is Using AI To Become the Fastest Supply Chain in the World

Did you know that Amazon has been using machine learning and AI for more than 25 years? Yes, 25 years! That’s ...
Read More
Survey: Consumer Home Delivery Preferences

Survey: Consumer Home Delivery Preferences

In the eCommerce landscape, the way brands interact with their customers is evolving. While optimized store ...
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

Shipping Insights & Alerts
Get updates and track the things impacting your business most

Decision Support
See how supply chain adjustments pay off before you pay out

Carrier Management
Streamline how you manage your carrier operations and contracts

Business Automation
Let software do what it does better than people can

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM is impacting you

Podcast
Hear from industry experts on LeaderShipping

Case Studies
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate your CO2 Emissions

Guides
Download free reports and
expert how-tos

Demo
Get a personalized tour of our software

About Sifted
Get to know Logistics Intelligence

Unboxed Newsletter
Subscribe for parcel news, predictions & tips

Logistics Intelligence
For parcel shippers

Let's get you to the right place!

SIFTED DASHBOARDS
For parcel shippers

AMAZON
Redirect to Valence Intelligence Login

Not sure if you have an account? Email [email protected].