What is the one personal milestone that most of us resolve to reach every new year? Getting in shape! Despite all that has been said and done for such a widespread concern, only a handful make the mark. Grappling with all the diets, long-distance running, and yoga classes, many of us fall short of our goals. Yet there are a few who always go for a morning run, walk the dog every evening, choose keto diets and salads over steaks, and even drink beer. Nothing fazes them, and we feel that they have some magic bullet. The same problem plagues the parcel industry, and especially parcel spend management.
Given the pace at which the modern e-commerce industry works, parcel shipping has become the bloodline of many companies. It is no longer an afterthought but a strategic imperative that helps businesses mitigate the risks of ever-evolving carrier landscapes, complex pricing structures, and the constant pressure to deliver faster and cheaper. However, thanks to all its intricacies and details, parcel spend optimization is a daunting task.
Enter the parcel spend management shipment auditor. This specialized expert works as a strategic ally and assists you in optimizing your parcel spend, navigating you through parcel shipping complexities, and identifying hidden costs.
However, something that is valuable doesn’t come that easily. The simple-looking task of choosing the right auditor is fraught with risk, and the wrong choice can jeopardize your bottom line. Here are some key risks you should look for and mitigate when choosing the right parcel shipment auditor.
The pitfalls of selecting the wrong parcel auditor:
1. Paying no heed to expertise: The complexities of parcel shipping vary from industry to industry, and choosing a one-size-fits-all auditor may lead to inaccurate audits and missed savings opportunities. For instance, imagine a food and beverage company trusting an auditor whose primary focus is on electronics shipments. The nuances of fragile handling and temperature-controlled transport might get overlooked, resulting in increased charges and service failures.
2. Getting stuck with costly carrier contracts: A skilled auditor not only identifies billing irregularities but also investigates your carrier contracts, analyzes them, and negotiates better terms. If your auditor lacks the acumen for parcel contract negotiation, it can leave you stuck paying more for shipping than you need to. It also hinders your opportunity to leverage discounts and other cost-saving opportunities.
3. Overlooking transparency: As Stephen Covey beautifully writes, “Trust is the highest form of human motivation. It brings out the very best in people,” and what better way to build it than transparency? However, a lack of transparency in audit methodology, fee structures, and reporting can breed mistrust and hinder collaboration. Beware of auditors with opaque processes or hidden costs.
4. Shrugging off technological advancements: In the era of business intelligence, AI, and ML, you don’t want your data to be analyzed manually, do you? Manual audits and legacy software are insufficient to analyze your mountains of data in today’s environment, which requires agility. You need robust parcel spend software for trend identification, efficient and effective data analysis, and garnering real-time insights. Opting for an analog-age auditor will impede your decision-making abilities.
5. Shutting out the long-term vision: An ideal parcel spend management partnership goes beyond one-time audits. Thus, always look for an auditor that offers proactive strategies like intelligent spend analysis, parcel spend optimization, and parcel contract negotiation. A mere shortsighted approach will yield smaller savings and leave you vulnerable to price hikes and missed cost-reduction opportunities.
Navigating the labyrinth of parcel spend management
Here are some essential tips to avoid pitfalls, choose the right parcel invoice auditor, and empower your parcel spend optimization journey:
- Mark out your needs: Analyze your shipping volumes, delivery routes, and industry-specific challenges by conducting a thorough internal analysis. This will help you identify specific requirements that you have, and based on that, you can choose the expertise and services of the auditor that best meet your needs.
- Examine the auditor’s expertise and technology: Look for auditors with experience in your required area. Prioritize auditors that highlight robust, agile, and user-friendly parcel spend management software.
- Ask for transparency: As stated above, transparency is critical in building trust, and therefore you should ask detailed questions regarding aspects such as their reporting format, audit methodology, fee structure, and more. Ensure you understand the particulars, exactly what you are paying for, and how the auditor measures success.
- Look for references and a track record: Relying only on the marketing data can be misleading; thus, reach out to your peers and ask them for recommendations. Also, look for the auditor’s past performance and success stories.
In the end
Whether you want to choose the right way to gain the ideal physique and lose weight or the right auditor for parcel spend management, making strategic decisions that will impact your health or your business’s health is the key.
Remember, selecting the right parcel invoice auditor is not just about finding a cheap option. It’s about identifying and securing a trusted partner who understands your needs, capabilities, and business, and possesses the expertise to steer you through parcel spend optimization. Additionally, it assists you in mitigating the risks outlined above, optimizes your entire shipping operations, maximizes savings, and ensures effective parcel contract negotiation.
If you want a partner that enables you to watch your parcel spend shrink while your business thrives, TransImpact is here for you. Get in touch with our experts to learn more.