How Parcel BI Exposes Shipping Charge Corrections

How Parcel BI Exposes Shipping Charge Corrections | Cleveland, Ohio

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. This leads to lost margin.

What Can Cause a Shipping Correction?

Some common examples of charge corrections include: 

  • The weight of a 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 you’re shipping to a business entity, the address still might be classified as a residential charge as opposed to commercial shipping.
  • Over Maximum Weight and Size Charges can cost as much as an additional $850 per package if a package exceeds the carriers maximum thresholds.

The companies who are shipping your parcels will make the necessary corrections and adjust the bill after the fact. It is likely that a shipper could think they are sending a package out that is going to cost $15 to ship, but when it gets delivered, it cost $150, or $1,000 due to the corrections.

How Can Parcel BI Help Prevent Shipping Correction Charges?

At Parcel BI, we provide you with the tools to view all of your company's corrections conveniently through your invoices so you can see where you were charged more than you expected.


The video contains an example of corrections that cost a shipper over $1,000!  The customer entered the weight as 21 pounds, but it actually got billed at 90 pounds, and the package exceeded the carrier’s maximum size limit. 


With Parcel BI, you can see the dimensions of this package. It is a very long, narrow package, very light in reality. However, it's getting billed at a higher weight because it's oversized in length. This oversized length accrues an additional charge of $850!


This customer thought this package was going to cost $20 to ship and it cost over $1,000 because of all these corrections. When you multiply that by the number of packages that really affects your company.

The Correction Audit Fee

Not only was this customer charge way more than they anticipated, but now they have to pay additional audit fees. If the shipping company finds a certain amount of corrections, they're going to assess an audit fee, $1 per package every package in the shipment.

What makes this fee harder to see is that it is billed as a single line item, and not associated with a specific package, so it often goes unnoticed, unchallenged, and uncorrected.

Even if a package wasn't corrected, it could be assessed a dollar fee for being audited because five packages out of 1,000 had a correction. If you are getting corrected often, there could be an extra $1 cost per package per day that you are not seeing. 


Parcel BI not only exposes the data, but we show you where in your processes, you can make adjustments allowing you to save money in the long run, be more proactive, and eliminate unnecessary costs.

If you want to stop leaking money from unnecessary shipping fees due to corrections and audits, contact us at Parcel BI today. We offer a free demo so you can see how Parcel BI will work for you!
 

How Parcel BI Exposes Shipping Charge Corrections | Cleveland, Ohio

Loading Form...
Loading Form...
Most Recent

ABC Co. vs. A B C Company… How Parcel BI solves Address Grouping

By Parcel BI
August 14, 2019 Category: Savings, Parcel

An issue that many companies face when looking at their parcel data is spotting trends by receiver or shipper. Even the simplest mistakes or entries can cause issues with your data. Best practices suggest using system driven receiver and shipper information to create consistency, but that is not always possible, such as third-party shipments, customer entered data, etc. The result is many transactions with slight variations in name or address, when really it is all the same. THE ISSUE WITH VARIANT RECEIVER / SENDER DATA There are so many different fields of entry when shipping, that it is easy for variations to occur, and that makes it hard to connect data. For example, a companys name changes between shipments, (ABC Co. vs. A.B.C. Company) or an address is entered with an inconsistent street abbreviation. Instead of putting the word St you enter St. or Street. There are so many variations that could be entered, resulting in more data that is spread out and flat. This makes it harder

Chargebacks and Rebills on Your Parcel Spend

By Parcel BI
August 07, 2019 Category: Chargebacks

What is the Difference Between a Chargeback and a Rebill? A Chargeback and a Rebill are basically the same thing. UPS calls them chargebacks whereas FedEx calls them rebills. Whatever you like to call them, they can cost you a lot of money, especially if you ship a lot of packageson other companies account numbers. A chargeback/rebill occurs when you are the shipper of record, and ship on someone elses account (Collect or Third Party), but then that company or person decides, for any reason, the dispute the charge. After they decline to pay the shipping cost, the carrier then charges you, the shipper of record, because they need to charge someone. Additionally, if the account you used is on credit hold with the carrier, they will also reverse the charges to the shipper of record. The Result: you have been charged for a shipment that you had expected to pay nothing for. It is very easy for this type of cost to slip through the cracks, and they can really add up! These costs often come

Wasteful Address Corrections Exposed

By Parcel BI
July 30, 2019 Category: Corrections, Savings

Parcel BI specializes in creating business intelligence tools to help companies save money on their parcel spend. There are many areas where a business can be leaking money on their parcel cost, and sometimes you dont even realize it is happening. One of the areas where many companies lose a lot of money is on address corrections. WASTED MONEY ON ADDRESS CORRECTIONS Carriers are charging up to $16.40 per package for an address correction. Corrections can occur when the information entered is not an exact match to what the carrier says it should be, but the difference is not always significant. Incorrect address charges can result if there is additional information, entering street instead of avenue, the suite number is entered in the street address code as opposed to the second address line, or an incorrect zip code can cause a charge. Entering incorrect zip codes is often one of the most repeated address correction charges. A lot of times, companies may have a billing ship code and

Categories
Savings (5)
Parcel (4)
BI Solutions (4)
Parcel BI (4)
Corrections (3)
Cost Savings (2)
Parcel Forum (2)
Parcel Delivery (2)
Powerful Demos (2)
Parcel BI V. Audits (1)
Business Intelligence (1)
Shipper Of Record (1)
Late Fees (1)
Vendors (1)
General (1)
UPS (1)
Case Study (1)
Cost Reductions (1)
DIM (1)
Chargebacks (1)
+ Show More
© , Vizion Solutions, LLC | Powered by Virteom Logo Virteom