Blog
Category: Savings
How Parcel BI Makes Managing Many Accounts Easier
E-commerce is a huge part of how we buy these days, and as a result, it has really changed the game for business supply chains and logistics. Many retailers are now shipping out of various locations across the country, the continent of the world. As a result, they are managing dozens if not hundreds of different accounts. We call these omnichannel; companies that are fulfilling from multiple brick and mortar operations as well as distribution centers. Some organizations have accounts for multiple carriers at a single location, or accounts designated for different purposes as well. Death by 1,000 Paper Cuts The more accounts to manage, the more invoices to review and process. The greater the opportunity to miss opportunities to reduce spend and to leak money. Managing a handful of accounts is challenging enough, but multiply the possible errors by dozens or hundreds of accounts and the potential to miss things and have things such as late charges, chargebacks, audit fees, etc. just
Parcel BI Exposes Costly Late Fees
Many companies spending lots of money on parcel are leaking money in areas that they may not realize. Parcel BI offers easy to use tools to help expose these leaks and show these companies how they can save on their parcel spending long term. One of the most subtle areas many companies lose money is on late fees. Standard terms for the major parcel carriers are paying your bills Net 15. In manyof these companies, the people who are in charge of accounts payable may not be aware of this. This leads to the company not paying their parcel bills on time, which can add significant cost.The carrier that assesses these does not mind keeping you in the dark because it makes them a lot of extra revenue. Late Fees Are Subtle Unfortunately, late fees go unnoticed all the time, and the more accounts you have, the bigger the problem can be. Common reasons for a company racking up late fees are anywhere from their accounts payable not realizing the due dates to not realizing they had their bills
Hodell-Natco Case Study
At first, I was blown away by the data and excited, then I started getting disgusted at seeing the things we were doing to that were costing us money Now that we see the data so easily, we have an advantage and an opportunity. We identified a way to use the data that can save us over $60,000 in supplier costs. Dan R. Purchasing Director Hodell-Natco Industries is a full-service wholesale distributor of fasteners and chain. Stocking over 40,000 industrial fastener and chain items, they provide customers with expertise in sourcing hard-to-find items. Hodell-Natco spends over $650K annually on parcel, 82.6% ground with 12.8% Next Day shipments. Two-thirds of the spend is on inbound or third-party shipments, as a large amount of the outbound shipping is shipped collect. In 2018, Hodell-Natco was gathering data into Parcel BI to negotiate a new contract. Parcel BIs Contract Edge helped highlight some important contract negation points between both UPS and FedEx. One thing that was exposed
Virteom