How Advanced Parcel Solutions Enhance Enterprise Logistics With the rapid growth of e-commerce, combined with the Amazon effect of customers demanding their

orders immediately, an effective and efficient parcel operation is fast becoming a game-changer for retailers

and manufacturers. According to emarketer.com forecasts, B2C e-commerce sales will be greater than $2

trillion worldwide this year, an increase of almost 16 percent, with North American e-commerce sales close to

$600 billion. In every omni-channel supply chain, efficient freight transportation services are required for a

seamless customer experience.

With the omni-channel mindset of buyers (buy

from anywhere, pick up anywhere), companies

are struggling to meet the demand on their

current transportation operations. Retailers and

distributors must lower their fulfillment costs and

speed deliveries to be able to compete. Customers

placing smaller, more frequent orders are driving a

greater demand for parcel solutions and services.

However, shippers with multi-million dollar

transportation spend can’t afford to pay expedited

or parcel freight each time a customer wants

something shipped.

Businesses often turn to third party logistics

providers (3PLs) to improve their logistics

operations, but few 3PLs offer parcel management

services and solutions that enhance the customer

delivery experience. Small package operations

should integrate tightly with a multi-modal

Enterprise Logistics solution for companies of all

sizes. Parcel expertise is critical. The team should

include engineers, revenue management experts,

industry analytical managers and financial

analysts to bring the most extensive parcel

shipping proficiency.

Executive Knowledgebase by Todd Benge - Vice President, Parcel Operations

“Shippers with multi-million dollar transportation spend can’t afford to pay expedited or parcel freight each time a customer wants something shipped. A well engineered parcel program optimizes

processes and improves productivity, while supporting business strategy.”

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Robust transportation technology combined

with a 3PL’s expert knowledge of the omni-

channel world enables shippers to gain greater

efficiencies through the management of

freight and information. A 3PL with unmatched

understanding of parcel provider operations and

how they measure success gives valuable insight to

executives who are looking at ways to make better

decisions within their supply chain.

To enhance an Enterprise Logistics offering,

use a parcel shipping plan backed by proven

methodologies, sophisticated modeling tools and a

team of parcel experts so that transit times will be

met and costs reduced.

To make sure customers have a best-in-class

customer delivery experience, utilizing data-driven

programs that incorporate everything from

invoice auditing to advanced analytics is

most advantageous.

One key differentiator for a successful parcel

spend management program involves advanced

parcel analytics using data gleaned from shipping

information that includes costs, fuel usage, zones,

weights, freight invoices and accessorial fees.

On-demand business intelligence dashboards give

clarification on trends, performance metrics,

cost-per-package averages and air/ground

utilization details.

A well engineered parcel program optimizes processes

and improves productivity, while supporting business

strategy. Analyze parcel data by modeling what-if

scenarios to enhance programs for current strategies

and future goals. These scenarios can address mode

optimization, split shipment assessment, routing

analysis, DC alignment and site selection analysis,

mergers and acquisitions analysis, fulfillment models

and regional carrier analysis. The result is a parcel

program closely aligned with business goals

grounded in fact-based analytics, robust audits and

industry expertise.

Rigorous parcel audit compliance services will assess

to the penny against client contracts to match

program costs with services rendered. Auditing every

invoice takes a tremendous amount of administrative

effort; not auditing invoices means you leave money

on the table. Auditing with SSAE16 Type II compliance

means complex invoices are inspected and unraveled

for national and regional carriers. Errors and duplicates

are uncovered, while claims are submitted and

followed up. In the end, the combination of analytics

and audit of invoices, services and compliance helps

businesses gain control over parcel expenses and

better manage financial-related risk associated with

potential fraud, security and compliance.

©2016 Transportation Insight, LLC. All rights reserved PCBLO R2 8/2016

Visit www.transportationinsight.com for more information.

By Todd Benge,Vice President, Parcel Operations

Transportation Insight