UPS Service Guarantee: What to Know
Here are important things to know about a UPS service guarantee. When you ship a package with them in any way, they offer a UPS service guarantee. Here's an example. Say I want to ship a package to New York and want to ship it either next day air, next day air saver, or ground. It comes with a delivery guarantee. This means that they're going to guarantee that the package will be there by a certain day at a certain time. And if the package does not arrive by that day and that time, they will give you your money back. So they will say, "If we don't meet our guarantee, that shipment is eligible for a refund."
If you open up a UPS service guide you're going to find the word guarantee in their service guide over 100 times. Right? They offer a UPS service guarantee on all their services. Now what happens is if you ship a package and that package is late. Well, guess what? UPS actually knows that they delivered a package late. They have sophisticated tracking systems that show they delivered a late package. Now here's where things get interesting. Even though UPS knows they delivered a package late, they won't approach you about it. First, it is your responsibility as the consumer to identify that late package. Second, you're the one who has to submit a refund request to UPS. So although they have the ability to credit you back for that late shipment that they guaranteed. They still put that responsibility on you as their customer.
Securing Late Package Refunds
The way you find out about a late package is by going to UPS's system and tracking the package. So once again you're using their system to tell you that a package was late. They already know that that package was late and they could refund you that money right away but they don't. UPS is counting on the fact that you're not going to submit a request for a credit and they're going to keep your money. You have 15 days from the scheduled delivery date to request a refund. If you don't do that within that time frame, they will keep your money.
There are four different ways you can address this problem. The first is to accept that it is what it is and to do nothing. The second, what UPS often does is ask their customers to sign a UPS service guarantee waiver. This means you are signing a waiver instead of being able to file for late shipment. UPS's usual position is, "Hey. We ask you to sign a service guarantee waiver which means you can no longer get money back for late shipments. In exchange for that, we're gonna give you an extra point or two built into your contract." So that's option number two.
Audit Shipments Yourself
Option number three is to actually audit your shipments yourself through auditing technology. Now keep in mind that the carrier invoice has thousands and thousands of line items. You may have thousands of shipments. Within each particular shipping charge there could be a range of charges. Also, these charges could be transportation charges to accessorials to fuel. The list goes on and on. So as you can imagine, you need some pretty sophisticated software if you're gonna be doing this on your own. I love it when customers say, "Yeah, we audited our own shipping invoices." Then I find out it's someone sorting through paper invoices by hand. It's impossible to catch all the errors if you're doing it that way.
Delegate the Audit
Then the fourth is to delegate it. Now there's plenty of auditing companies out there that can handle this for you. There's a variety of ways that they can charge you. Even so, I definitely recommend doing something. So the option to do nothing option, I definitely wouldn't recommend. Option number two, to sign a service guarantee waiver works out in the best interest of the carrier. I recommend auditing it. You can either audit it yourself through some auditing technology or software. Or you can outsource it. This way ensures that you're catching all the late shipments. Then you can capture all the late shipment refunds that you deserve.