There’s a potential untapped revenue source for companies that ship with parcel or ltl carriers. As mundane as a parcel audit may sound, it can reap rich dividends. Consider the impact of discovering 6 months of refundable FedEx or UPS charge errors.
Here’s how it works. Parcel carriers like DHL guarantee on time delivery and accurate billing. However, to file a claim for a refund the customer has to identify the service failure or billing error, then contact FedEx or UPS, to demand a refund. The net result is that most companies simply overpay their UPS or FedEx bills rather than hassle with the challenges of filing UPS claims. Their logic is quite sound as it may cost $8.00 to secure a $5.00 UPS refund.
However, there’s a simpler, cheaper solution. Since 2000 Direct-Recovery has offered parcel audit and SaaS business intelligence solutions to ensure shippers pay only for on time deliveries, and valid charges. What’s more, since all work is performed on a gain-share basis, companies are assured of a profit bump when enlisting the services of Direct-Recovery. But when does a profit bump become a profit windfall?
The parcel audit includes a carrier invoice audit that ensures only valid charges are paid. The rate compliance check may reveal months of unapplied discounts, or inappropriate surcharges. Or, there may be months of bogus residential surcharges or Saturday delivery fees waiting to be refunded. For larger shippers, these accrued charges, or ‘latent refunds’, may be substantial.
There’s also the chance to secure refunds for loss and damage claims. Companies that ship low value items often leave loss and damage unclaimed. Since a parcel loss or damage claim includes both merchandise and shipping cost, this refund can be substantial – especially when cashing in nine months of claims.
If your company ships $50,000 per year, these numbers may be inconsequential. However, with a 7 figure shipping spend, it’s not uncommon to discover enough ‘residual’ to offset the rising cost of payroll insurance, or to make the difference between profit and loss in a narrow margin industry.
This is also true on the freight audit side, so if you have a stack of ltl bills, or invoices from UPS, FedEx, DHL or another parcel carrier, visit www.direct-recovery.com and run a 30-day trial. See if the mundane parcel audit doesn’t yield a UPS refund windfall. If it doesn’t, at the very least you’ll pay less for shipping services you actually receive.