Let's start right at the beginning. Most people don’t know what a parcel audit is. A parcel audit is the task of going through each and every shipping invoice to look at carrier service errors you can be refunded for. The process is extremely tedious and time consuming. This is where 3rd party parcel auditing companies can come in handy. However, there are several questions you should ask before deciding if it is the right decision for your business. We have decided to answer the most asked questions by customers when deciding if a parcel auditing company is the right for them.
How will this impact my relationship with my carrier?
This is a question most people ask out of fear that their carrier will start to treat them worse knowing they have someone in their corner fighting for them. This is not the case. Carriers often offer specific service promises in hopes to get your business, and they owe it to you to keep them. However, when they break these promises they do not tell you. That is where a parcel auditing company enters the ring and get you the money that you deserve. Most of the time relationships with carriers are indeed strengthened after the addition.
What if I have a GSR Waiver in place?
A Guaranteed Service Refund (GSR) waiver is something carriers offer shippers to get them a “greater” overall discount. Signing a GSR means you are waiving your rights to recover funds from certain service errors. The discount they offer you to sign the GSR is almost always possible to get even without signing that waiver. However, if you already have a GSR waiver in place a parcel audit can still be completed for your company. However with a GSR Waiver in place your savings will not be as much as they should be. It is recommend you call the carrier you ship with and get it removed from your contract to maximize your savings.
What is the minimum carrier spend?
All parcel audit companies have a minimum carrier spend. This is to ensure that it is worth the auditors time and effort to perform the tedious process of going through every shipping invoice to find recoverable funds. On average the minimum carrier spend is $150,000 annually. However, if you spend less than this and still want to benefit from carrier services errors, you can! Some companies give you access to use their platform to audit your own shipping invoices even if you do not meet the minimum they require to step in. It requires you to do the work but might be worth the savings for your business.
What is the average percent savings?
Your average savings is dependent on several factors such as total shipping spend, Shipping Characteristics, and your zodiac sign…. Ok I’m kidding about that last one, but I heard scorpio’s tend to save the most. On a more relevant note, when working with a parcel audit company you can expect an average of 2% savings per year. To some this might not sound like much, but we all know how expensive shipping is and 2% is definitely worth fighting for. I mean come on what company wouldn't benefit from some extra cash?