↵ Back to blog

Shipping Audit Savings – True Confession

The question is reasonable and inevitable – “How much can I save with your shipping cost recovery services?”

The answer may seem elusive coming from industry professionals, but it’s simply true – “Don’t know”. Yes, we have historical comparisons from ‘similar’ shippers, and estimates by carrier, but until we have the live data in the system, hard estimates are speculative at best. If we overshoot, we pull a bait-and-switch. If we undershoot, we lose the sale.

The simple truth is, we have some customers whose carrier operations and internal logistics are so tight, we scarcely recover anything. For them, and obviously for us, it’s hardly worthwhile. We stay on it because every once in a while something pops. We’ll run dry for 11 months, then recover 20 % of an invoice. Go figure. We’re still in business today because, well, ‘stuff happens’.

Here’s another truth. We ran a 17.6% average gsr recovery rate over 2 years for a good sized client shipping with a regional carrier. True, audited result. But put that on the brag-board and we become snake-oil salesmen.

We especially like returns from international shipments and regional carriers. That’s why we offer our services globally, regardless of billing domicile, and work with virtually any established carrier that has electronic billing and a service guarantee. Recovery rates are higher and our services are all the more essential. What’s more, the more aggressive we are at enforcing carrier service commitments, the better the carrier performs.

We just lost a sale to what I considered an ideal prospect – parcel spend of $1M going through multiple carriers among their offices in 20 different countries. We offered centralized billing, total transparency, parcel audit, claims processing, the works. We’d save them money and boost efficiency. That’s our claim to fame. We lost the sale, but it wasn’t because they found an alternative to our services. They had none. They were simply overpaying their carriers ( UPS, FedEx, and DHL) and choosing to do so. Later came the cynical realization – they’re a government contractor. Aren’t they compensated on cost-plus? Hmm…  And no, it wasn’t Haliburton.

Back to the question of potential recoveries. Run a 30-day trial and we’ll show you, and us, what our shipping audit can do for you. It’s really the simplest answer.

On a final note, we work on a gain-share of savings unless the client chooses otherwise. We offer a monthly fee, or per transaction, but most choose shared savings . Splitting the reward seems like the most honest, sensible approach to a very unpredictable recovery stream.

Posted in Parcel Audits, Uncategorized | Tags: | Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *