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Category: Corrections
How Parcel BI Exposes Shipping Charge Corrections
A shipping charge correction is when the costs for a package to be delivered are adjusted(typically increased) after the package was processed. These corrections can cost your business a lot of money, and they can be adjusted for many reasons. The important thing to understand is that corrections are changing your expected costs for shipping vs. your actual costs. If you are operating under the assumption that what you think it will cost to ship a package is the actual cost, then you are operating under incomplete or incorrect information. Thisleads to lost margin. What Can Cause a Shipping Correction? Some common examples of charge corrections include: The weight ofa package was entered wrong which can also cause the cost to go up The dimensional weight (DIM)is weight based on the volume (height x width x length) of the package, not the actual weight. The Shipper will charge you whichever is higher. Residential and commercial shipping charges vary just because youre shipping to
DIM Corrections Exposed!
Does This Sound Familiar? We had anew user who was not really managing spend.They are a fast growing company, and they are focusing on other issues besides parcel. New Customers, New Reps, New e-Commerce Engine, Operations.... Good problems for a growing company. But what they had no idea of, was how parcel costs could be eroding all of their hard work and margin. The leaders wear many hats, and the head of e-commerce agreed that parcel spend was worth a look and signed up for Parcel BI. Company policy was to provide free ground shipping and bill for expedited shipping (Anything above ground). Theirobjectives arejust like 99% of all shippers: Keep costs, especially ground shipping costs as low as possible Make sure expedited shipping costsare accurately capturedsocustomers are billed correctly What is the DIM (Dimensional Weight) Effect? Once they took a look at their data in Parcel BI, eyes were opened. What Parcel BI instantly exposed was a Dimensional Weight or DIMissue. The
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