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]

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FedEx · Parcel · UPS · All Topics
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