When your business is paying for shipping, you’re not just paying for your parcels and transportation. You’re also paying for fuel, zones, residential charges, and surcharges that you may not actually owe.
It’s important to have visibility in and access to your transportation spending. Without it, you could be paying additional fines you might not know about. The good news is that there are a few ways you can prevent paying for added fines. Here are a few tips to keep in mind when working with your shippers.
  • Check reports on parcel companies. It may be easier to pay your shipping bills without looking at the itemization, especially when you’re paying third-party. But it’s essential to check reports on your parcel companies at least every three to six years to prevent paying for additional fees and fines that could be costing your business thousands of dollars in the long-run.
  • Ask shippers for online logins to check bills. It may take some effort and negotiating with your shipper to set up online logins for you to regularly check your bills, but it’s an effort worth making. You want to be sure that you’re paying only for the services you’re actually using. What’s more, a shipper who doesn’t allow you to access your bills to check them is immediately suspicious and it may not be worth working with them again in the future if they’re hiding unnecessary charges.
  • Audit shipments daily. It’s essential to have your shipments audited daily to make sure your shipments are getting the right discounts. Over $2 billion in refunds and credits go unclaimed by U.S. businesses every year. Unfortunately, it can be tricky to audit your shipments every day when you’re also running other parts of your business. That’s where an external parcel contract auditing team like AFMS comes in. An external parcel contract auditing team does auditing for a living and can easily spot missing discounts and areas where your shipments are being unnecessarily charged. What’s more, with an external parcel contract auditing team keeping an eye on your shipments daily, you can turn your attention elsewhere in your business to keep everything running smoothly.
  • Negotiate your contract. It’s recommended to have a parcel contract negotiation with your shipper every five to six years. Parcel contract optimization ensures that your business isn’t paying more for transportation and shipping services than it ought to be. However, before you go into a contract negotiation it’s important to have your contract and your shipments audited by a parcel contract benchmarking team. This way you can deliver your argument with the right evidence to back you up for a better contract.

Looking for parcel shipping contract negotiations support? AFMS has the parcel shipping experts you need. For more information about our auditing, benchmarking, and negotiation services, contact AFMS today

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