Dealing with increased costs, delays, and unpredictable consumer demand is how challenges with supply chain management are navigated now. That means adopting smarter, innovative solutions to shipping. Third-party parcel management helps companies worldwide to meet challenges and handle customer expectations better.
Most Fortune 500 companies rely on third-party parcel management. Its many perks—including carrier diversification, simpler shipping contract negotiations, and end-to-end visibility—offer transformative solutions to the industry’s most critical pain points.
Skip unnecessary surcharges and fees by diversifying carriers
In search of a more reliable and efficient shipping model, many companies are leaving UPS, FedEx, and other carrier-managed solutions behind. And, it’s no secret that shipping rates have soared. In response to skyrocketing demand, longstanding labor shortages, and rising fuel expenses, carriers are increasing prices and implementing new surcharges and fees. FedEx and UPS, for example, announced an almost 6% rate increase at the beginning of this year—a considerable departure from their usual 4.9% increase in previous years.
By turning to third-party parcel management, companies can easily diversify their carrier networks—and avoid unnecessary rate increases and surcharges along the way. Equipped with vast networks of thoroughly vetted carriers, third-party logistics providers can guide shippers toward the carrier best suited to each shipment.
With the help of third-party shipping and fulfillment experts, companies can steer clear of common pitfalls. While some carriers may provide a lower freight rate, surface-level savings often come with higher—and potentially hidden—accessorial charges. The result? A surprisingly costly shipment.
Partnering with the right third-party parcel management provider also ensures accuracy. CTSI-Global’s parcel management system—fueled by Auctane’s ShipEngine’s powerful freight shipping API—helps companies avoid costly errors. ShipEngine powers more than $80 billion in gross merchandise volume for the world’s fastest-growing e-commerce platforms, logistics providers, and brands.
“The average cost per failed delivery is $17.20 in the U.S.,” explains Josh Miller, CTSI-Global’s Vice President of Sales. “The CTSI-Global system drives cost-efficiency by validating the destination address before shipping, eliminating incorrect address fees and undeliverable or delayed shipments.”
Simplify shipping contract negotiations
Negotiating a shipping contract is a notoriously complex process. Contracts with carrier-managed solutions—especially FedEx, UPS, and other big names—often come with countless technicalities and a lack of transparency.
Partnering with a third-party provider can streamline the entire process. CTSI-Global’s parcel management solution harnesses:
- Comprehensive data
- Rates and pricing structures
- Advanced modeling technology
- Ongoing routing compliance monitoring
- Shipment-level cost-tracking for full transparency
Beyond the platform itself, CTSI-Global is an experienced negotiator on both sides,which provides the knowledge of where carriers make pricing concessions.
Visibility and control go a long way
A common misconception about third-party parcel management is that companies lose control of the shipping process.
“By using a parcel management solution, you can maintain corporate control and governance,” says Miller. After all, companies know their pain points best—and can more easily overcome them with tools that drive effective carrier partnerships and cost-efficient decision-making.
Thanks to robust data and analytics, working with a third-party partner also boosts visibility. CTSI-Global system:
- Standardizes the shipping process across all locations
- Enforces routing rules to reduce rogue spend
- Helps users make more informed routing decisions
- Provides more accurate ETAs through real-time tracking and automated notifications
- Provides complete visibility into all parcel activity, including shipments, tracking, and parcel invoices
- Measures all aspects of the shipping process, including carrier performance metrics, lost opportunity analysis, spend analysis, and expected vs. actual costs
- Provides predictive analytics to improve the accuracy of forecasts and accruals
Stay agile with third-party parcel management
In an unpredictable climate, the right shipping strategy is essential. Amid rising consumer expectations and unprecedented supply chain woes, companies must minimize costs, cultivate meaningful partnerships, and prioritize visibility.
CTSI-Global’s parcel management solutions give companies the data-driven insights they need to thrive. With the right third-party partner, companies can confidently navigate challenges—and emerge more agile and competitive than ever.