5 Ways to Boost Profits with Parcel Management

In the era of global supply chains, parcel management is as complex as ever—and becomes even more difficult as companies scale. When sales volumes increase and customer relationships stretch worldwide, shippers can implement agile logistics processes and technology to coordinate last-mile deliveries and quick returns.

Disparate systems and manual parcel workflows can delay shipments, leave money on the table, and obscure key growth opportunities. To efficiently use shipping budgets and drive growth, companies need an integrated solution that connects to other supply chain systems and streamlines the entire parcel life cycle. 

In the face of increasing order volumes and parcel coordination, parcel management solutions can be transformative—combining a transportation management system (TMS) and freight shipping API to support front-to-back parcel workflows. From easier international trade to real-time shipment statuses, this holistic service helps shippers overcome growing pains and optimize logistics resources.

1. Select the best—and most cost-effective—carrier every time

Carriers differ in costs, delivery times, special equipment, and more, making it difficult to compare options and make informed decisions about lowest-cost transport. Through analytical, cost-effective carrier selections, parcel management systems make detailed comparisons. 

This software dramatically increases carrier options through a vast network of regional and specialty providers, including more than 70 pre-approved parcel carriers. It can store real-time carrier costs, delivery times, and capabilities, sort through carriers with just one API call; and select the most cost-effective and timely option for each shipment. With optimized selection, customers get goods on time, and companies potentially save tens of thousands of transportation dollars.

2. Boost supply chain visibility and customer support

Parcel management software simplifies parcel coordination and meets customer expectations for a smooth experience. The software provides complete supply chain oversight, tracking shipments in real-time so shippers can keep customers up to date on delivery dates and delays. When a parcel arrives at its final destination, logistics teams will receive a notification and can alert the customer.

Additionally, parcel management solutions enable quick, self-service returns through automated return label generation. With limited manual input, the freight shipping API can create carrier labels in file format such as PDF, PNG, or ZPL. A tech-driven parcel management process builds trust and encourages repeat orders by keeping buyers informed and enabling rapid customer service.

3. Reduce shipping costs

For shippers with high parcel volumes, finding cost-saving areas is a serious concern. Parcel management solutions help shippers do just that. By consolidating shipments and implementing LTL rates over parcel rates, this software allows shippers to optimize transportation budgets. 

Instead of shipping items individually, these systems implement zone skipping or zone jumping. This practice involves consolidating packages and waiting until truck loads are full before transporting goods to a parcel carrier for final delivery. Zone skipping can save companies as much as 50% on shipping costs.

4. Fast-track international shipping flows

With surges in parcel demand, companies must prepare to execute international shipping quickly and accurately. However, this can be a significant challenge, especially for companies entering new markets.

Global shipping comes with complex taxes, international regulations, and harsh blowback for noncompliance. Parcel management solutions limit exposure to penalties and fines by automating shipping compliance. The system searches worldwide address directories to guarantee each order’s shipping address is valid.

“When addresses are inaccurate or incomplete, 41% of shipments are delayed, and 38% simply fail,” says Josh Miller, CTSI-Global’s Vice President of Sales. “Parcel management solutions utilize global address directories to ensure addresses are entered correctly at the time of shipment.”

5. Enhance information-sharing

Modern parcel management workflows involve different systems, from financial software like enterprise resource planning (ERP) systems to logistics technology like TMSs. They even cross internal company departments, such as sales and finance teams.

However, many shippers use carrier-provided manifesting systems for parcel management, such as UPS Worldship and FedEx Ship Manager. According to Miller, “carrier-provided systems are not typically integrated with other supply chain systems, which limits information-sharing within an organization.” These systems typically restrict a shipper’s ability to incorporate multiple carriers into the system and reduce the diversity of available carriers.

Parcel management solutions solve this problem through a flexible freight shipping API. This technology comes with pre-configured integrations with large international parcel and courier providers, such as DHL, FedEx, UPS, PDP, and Purlator. A TMS can also sync with ERPs to integrate shipping information across an organization.

Think strategically and scale with parcel management solutions

Companies can quickly become overwhelmed with increased order volumes without a simple, strategic parcel management process. That’s where CTSI’s parcel management solution comes in. This tech-driven logistics software brings together our proprietary transportation management system, Honeybee TMS, and the freight shipping API from ShipEngine, a subsidiary of logistics tech company Auctane. 

Our system—which combines a centralized document repository, freight audit and pay services, innovative automation, and a flexible API—is an all-in-one resource for organizations of any size. Devote more time to high-level strategy, build strong customer relationships, and leave time-consuming logistics tasks to us.

Get in touch with CTSI-Global to learn how your company can benefit from our integrated parcel management solution.