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parcel spend management

Over two decades ago, no one thought of sitting at home and receiving parcels from other parts of the world rapidly. Not long ago, you would have had to wait several days for your shipments to arrive. However, within half a decade, the situation has turned; customers now want orders as early as the same day.  

The market over the years has witnessed the power shift from manufacturers and retailers to customers, and rightly so; customers are the king now. Customers’ loyalties have also shifted from brand names to prices and services. The market has become competitive, and so has the sea of parcel shipping. Gone are the days when only two giants used to live happily in it. Today various new carriers rise to the occasion. So how to select one among all, and how to save more on shipping? The answer is to use Parcel Spend Management.  

What Is Parcel Spend Management?  

Parcel Spend Management is backed by technologies like automation and business intelligence (BI), combined with unparalleled market expertise. Once implemented, the solutions become an extension of the company and work to optimize parcel spend. In simpler words, Parcel Spend Management is a solution offered by an outsider company to plan, execute, and monitor the performance of your parcel network.  

Why Is It necessary?  

As stated above, the market has evolved exponentially in the last few decades. Customer demand has also grown immensely; a company cannot ship its parcels through the major carriers only. With hundreds of carriers available, you cannot just stick to one and hope for the best result. A local carrier might charge you less when you want to send a parcel locally. Similarly, some carriers may charge you less when you have to ship orders from one state to another. The same goes for international shipments as well.  

Once you start interacting with numerous carriers, it may become difficult to plan, interact with, and manage them productively. That’s where TransImpact, the parcel experts, assist you with parcel shipping and parcel cost management. We design and develop a network based on your goals, and then work towards achieving those goals and saving you money.  

Advantages of Parcel Management  

So, now that you are clear about what parcel management is and why it is necessary, here are some of its benefits:  

     1. Analyze data intelligently 

TransImpact as a parcel expert provides you with data intelligence, also known as Parcel Spend Intelligence. The solution enables you to analyze data, receive actionable insights, and realize short-term and long-term savings. 

     2. Avoid delays and overcharges  

With hundreds of touch points with numerous carriers, the risk of delay increases, which may result in customer dissatisfaction. After implementing parcel management solutions, the service provider ensures end-to-end assistance. They discover any invoice discrepancies to avoid paying overcharges.  

    3. Do not leave 15%-25% savings on the table 

Our parcel experts enable you to negotiate on a level playing field with the carriers. For 85% of the companies we analyze, there is 15%-25% extra savings available, which goes unnoticed because you do not ask for it. Our experts provide you with comprehensive insight that gives you the power to negotiate better.  

     4. Determine true margin 

The price of your product is determined by several factors such as labor costs, raw materials costs, and cost of goods sold (COGS), combined with shipping costs. By using a parcel margin analysis solution, you can directly impact EBITDA. It enables you to make plan corrections and ensure a consistent margin. 

TransImpact, an industry leader in parcel spend management, provides you with end-to-end benefits that assist you in optimizing your parcel shipping costs. The solutions are designed and developed by industry experts and assist you to create saving opportunities and enhance your margins. We offer our clients advanced insights obtained through the perfect blend of technology and the expertise of our specialists, so our clients save more.

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