Why A Parcel Audit Can Help Your Company Reduce Shipping Costs | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) Why A Parcel Audit Can Help Your Company Reduce Shipping Costs ============================================================== ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)March 09, 2012 [**Reducing shipping costs**](https://www.lojistic.com/rate-optimization-rfps) has become an important point of discussion for many businesses with the recovering economic situation. However, although it may seem easy to accomplish at first, the actual practice is much tougher to implement as businesses must question whether they need to cut services or shipment options. The great news is that there are some tried-and-true practices to reducing the final balance on an invoice without having to necessarily cut back services to your customers, which should only be used when completely necessary. One of these options is to conduct [**a parcel audit**](https://www.lojistic.com/freight-audit-and-payment), which can be an extremely helpful tool in your arsenal. A parcel audit is an important way to reduce costs to your shipping. An employee will look through carrier invoices to check for any mistakes between the carrier's invoice and your initial shipment. An example of an error would be if a carrier changes the address of the final destination, which would enact an address correction fee. However, unless this change happens because it impedes the driver’s ability to deliver the package, it is an incorrect fee and should be refunded back to the company. One easy-to-remember comparison would be to describe this process much like when you are exiting a store, like Costco, and one of their employees checks your receipt to your items for any discrepancies. They are checking to make sure all the fees are correct and accounted for, just like you are with your parcels. The reason to perform a parcel audit is because it will help keep you knowledgeable about the transactions being placed on your shipments and ultimately, to reduce your shipping costs by finding these errors. These audits are to make sure that not only is the carrier rightfully getting what’s owed to them, they are also making sure your company is also getting correctly paid for all included services, which is true of any good business. To not perform any parcel audits would be glancing over nearly guaranteed savings because of the nature of the shipping business. Even though carriers like FedEx and UPS have integrated advanced technology to try and automate the shipping process, much of the work still comes across human inputs which allow for a margin for error. Understandably, conducting parcel audits are not simple. They require knowledge about what mistakes to find and a task force to physically go through each invoice for each parcel, which can be quite daunting depending on the size of the company and the amount of shipments going out. Other than hiring in-house auditors, there are trusted third parties that can conduct parcel audits for your company such as Source Consulting. Don’t let these guaranteed savings get away from your company in this tough economic climate. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. 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