Multi carrier shipping software helps organizations control
shipping costs and meet customer expectations. In this QAD Precision
Report we look at 3 questions to ask when evaluating multi carrier
solutions for global parcel shipping operations.
The global express and small parcels market has experienced
significant growth in the last decade — only to explode in 2020 once
the pandemic hit.
Last year, over
131 billion parcels were shipped across 13 major markets. To
put that into perspective, that is 4,160 parcels every single second.
Forecasts suggest that volumes are likely to double within five years
to 266 billion parcels shipped in 2026.
Unsurprisingly, much of the growth is due to online shopping.
Consumers have not only embraced online shopping, they are looking
beyond their borders too, increasing the need for international parcel shipping.
Equally importantly, e-commerce has changed customer service
expectations. Across a variety of industries — not just retail —
customers want and expect the same service they receive when they shop
online. That includes prompt delivery. As a result, more small parcel
shipments, going to more domestic and global locations, are becoming
the norm for many enterprises.
Multi Carrier Shipping Solutions: 3 Questions to Consider
Sending a single parcel to each of a thousand individual customers
presents a different challenge to shipping a single order of a
thousand products to one distributor. And when you need to repeat that
process day after day after day, it becomes clear that managing this
aspect of logistics cost-effectively is critical to protecting
profitability and ensuring customer satisfaction.
Freight shippers shop on price and service for each shipment.
However, many enterprises use a single carrier to handle all parcel
shipments. After all, busy shippers simply do not have the time or
resources to research delivery options for thousands of parcels every
day. However, this also means that organizations are missing
opportunities to get better rates and faster service.
The answer, of course, is
multi carrier shipping software. Multi carrier shipping
solutions allow you to seamlessly switch between carriers for the best
rate, route and transit times. If your enterprise is evaluating global
multi carrier shipping solutions, here are three questions you need to ask.
QUESTION 1: IS THE SOLUTION SCALABLE?
What are your parcel volumes today? How might this change next year?
Five years from now? The most important question to ask has to do with
your enterprises’ business goals — where your business is headed and
how a shipping solution should support those goals.
If parcel shipping is likely to become a larger part of your
logistics operation over the next few years, your shipping solution
needs to be able to scale alongside your needs and be easily
extendable to new regions and business units.
QUESTION 2: DO YOU NEED A GLOBAL SOLUTION?
Do you need a solution to ship cross-border, regionally or globally?
If international shipping makes up a small, but growing, part of your
logistics operations, then it makes sense to consider a solution that
offers access to a worldwide multi carrier network that can support
your needs in the long-term.
If you ship globally, a solution that includes regional and local
carriers will give you more shipping options.
Unlike the US, Europe and Asia have an abundance of country and
regional-specific carriers. In Europe, for example, even some of the
larger carrier organizations have grown by acquisition. As a result a
single carrier may use multiple formats for labeling, documentation
and tracking number generation across different countries. Your
solution provider must be able to handle this complexity.
Furthermore, when you ship globally, you need to be able to create
documentation in multiple languages. Different number, date, and time
formats may be necessary too, and indeed multiple currencies and units
of measurement. A truly global multi carrier shipping solution will
offer these capabilities.
QUESTION 3: DO YOU NEED TO INTEGRATE COMPLIANCE CHECKS?
If your customers are based around the world, or if you ship dual use
goods, then, compliance checks are a necessity. Global trade
regulations compel organizations to screen and verify the identities
of their trading partners. This is to ensure you are not trading with
anyone on a denied party list, such as a member of a terrorist or
Compliance screening is not only required for cross-border shipments.
If you manufacture or distribute high tech, industrial or dual use
goods, you must also screen domestic shipments. In addition, if you
are shipping from a US location, you must also comply with deemed
export laws. Manually screening every shipment against a slew of
governmental and international denied party lists is extremely labor intensive.
Automated compliance screening helps enterprises manage these
challenges. However, many organizations use separate systems for
compliance checks and transportation execution. This exposes them to
risk through human error.
An integrated trade
compliance and shipping solution will vet every shipment to
ensure it can proceed. This includes denied party list screening,
determining end use, and validating the country of destination. An
integrated solution should also ensure that any special documentation
or actions are included.
LET’S KEEP IN TOUCH
To subscribe to our blog, or to receive notifications about QAD
Precision events, webinars and news, please click here.
CHAIN DISRUPTION AND PEAK SEASON SHIPPING
BENEFITS OF INTEGRATING COMPLIANCE AND MULTI CARRIER SHIPPING SOLUTIONS
MINUTE EXPLAINER: WHAT IS MULTI CARRIER SHIPPING SOFTWARE?