What is parcel auditing?
Parcel auditing is a review of UPS, FedEx, or DHL parcel invoices for billing errors, overcharges, or service failures due to late package delivery. Once an error is identified, a claim can then be filed with the carrier in an attempt to recover the overcharge.
Why is parcel auditing important?
UPS, FedEx, and DHL, process millions of shipments every single day. When it comes to invoicing for these shipments, often times the process is so automated that billing and service errors occur frequently.
The carriers also don’t tell you when these errors occur. It is the responsibility of the shipper to request refund for any package.
An estimated $2B goes unclaimed from parcel carriers each year.
What is parcel audit software?
A customer shipping 100 packages/day will likely see an invoice 100 pages long each week from their parcel carrier. It would be nearly impossible to scan these invoices to identify every refundable charge. In addition, scanning every line of every invoice can be mind-numbing and likely take the processor hours of manual labor.
For these reasons, parcel audit software was created. Automation tools like Seekr Parcel “link up” to shipping accounts, download weekly invoice statements, and run a comprehensive audit entirely in the background, disputing overcharges on behalf of the shipper.
Often times, parcel auditors bill on a percentage of secured refunds, so audit providers are incentivized to capture as much savings as they can for any given shipper.
What are benefits of parcel auditing?
1) Profitability. Logistics/shipping is a cost-center for most businesses. Parcel auditing provides a way for shippers to increase their profitability by recovering funds they otherwise might not receive.
2) No workload. When performed in an automated fashion, parcel auditing requires no workload on the shipper’s part. It runs entirely in the background, ensuring refunds come directly back to the shipping account.
3) Best Practice. Just like negotiating your parcel contract, the savviest shippers know how to take advantage of resources to benefit their parcel program including the auditing process.
Parcel Audit examples:
Here are some examples of audit errors that can be found via UPS or FedEx invoices:
Service Failures
Every package has a guaranteed time of delivery depending on the service level and zone. If a package does not meet the guaranteed time of delivery as defined by the carrier, the package is then considered a “service failure” and a refund on the shipping charges is available.
Here’s what service failure refunds look like via UPS.com and FedEx.com:
Incorrect Residential Surcharges
A package that has been incorrectly assessed a residential surcharge. Oftentimes, a shipment that delivered to a Commercial address, however, a residential surcharge was applied in error.
UPS residential surcharge refund example:
Incorrect Saturday Service Surcharge
A package that has been incorrectly assessed a Saturday Surcharge. Here are a few examples via FedEx.com:
Incorrect Address Correction Surcharge
Ship-to address does not match what UPS or FedEx determine it should be.
Dimensions Incorrect
The carrier scans incorrect dimensions and/or weight. Here’s a UPS example:
Duplicate Surcharges
Carrier bills twice for the same shipping charge. Here’s a FedEx example of duplicate billing:
Unused Shipping Labels
Seekr Parcel has helped hundreds of shippers mitigate their shipping expenses auditing UPS and FedEx invoices. Whether you’re shipping out a handful of packages a day, or thousands, we have a solution that would help you businesses reduce costs today.
Reach out to support@seekrparcel.com for a free 30-day trial.
