Cloud-based analytics may take some of the mystery out of parcel shipping pricing

Over $2 billion dollars in carrier overcharges go uncollected each year as shippers do not have the time or resources to collect refunds.

By ·

According to G. Scott Knight President Sunago Systems Inc., 5.9 percent of all carrier invoices for parcel shipping are incorrect. ParcelView – a cloud-based shipping analytics and auditing tool recently introduced by his company –  is designed to provide visibility, accountability and control needed to achieve total parcel spend optimization.

According to Knight, shippers can’t save money until they analyze carrier contract and shipping practices.

“Actual shipping characteristics can only be found in historical data; and carrier contracts are more conditional and complicated than ever,” he says in a website video.

Jerry Hempstead, president of Hempstead Consulting, says that the while the model is not unique, it represents a refinement of past efforts.

David Ross, transportation and logistics director at Stifel Nicolaus told LM in a recent interview that carriers continue to be focused on yield management.

“Shippers report that it’s more challenging than ever to negotiate parcel contracts with multiple sets of list rates, different fuel surcharges, complex revenue-based incentives, discount exclusions, minimum charges, and multiple punitive contract clauses,” he said.

Furthermore, said Knight, over $2 billion dollars in carrier overcharges go uncollected each year as shippers do not have the time or resources to collect refunds.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

FedEx · Parcel · UPS · All Topics
Latest Whitepaper
Image-based Scanning for Inbound & Outbound Logistics
In an era where making the "business case" for technology investments isn’t always easy, image-based barcode scanning stands on its own when it comes to ROI.
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....