Subscribe to our free, weekly email newsletter!


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

By Patrick Burnson, Executive Editor
April 23, 2014

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

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Spot market freight volumes for the month of August remained elevated compared to seasonal norms, according to data issued this week Portland, Oregon-based freight marketplace platform and information provider DAT.

Factors such as rising freight rates, shrinking capacity, an increased desire for global supply chain visibility, have all worked together to drive the need for instituting a culture of continuous improvement in logistics operations and transportation management systems (TMS). To meet today's complex logistics challenges, managers are stepping into a more streamlined, automated approach to transportation management in order to function at optimal levels both domestically and internationally. Read the latest special report.

The Atlanta-based company said that it plans to hire between 90,000-to-95,000 seasonal employees, up from about 85,000 last year, to support “the anticipated holiday surge” for package deliveries commencing in October and running through January.

The Memphis-based company reported today that quarterly net income of $606 million was up 24 percent annually, and revenue, at $11.7 billion, was up 6 percent. Operating income at $987 million was up 24 percent.

The World Shipping Council (WSC) released an update to its survey and estimate of containers lost at sea.

Article Topics

News · UPS · FedEx · Parcel · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA