Audit Questions

What is a parcel audit?

A parcel audit is a line-item review of a shipper's carrier invoices to identify inaccurate or invalid charges. The invoices are downloaded from the carriers’ billing sites and potential errors are flagged. Unlike some audit providers, ShipRx contacts the carriers on our clients' behalf and ensures the charges are refunded or credited.

How much can we expect to recover from an audit?

The amount will vary based on a company's shipping characteristics such as the service levels used (e.g. ground, air, etc.), package dimensions, and whether the destinations primarily commercial or residential locations. Refunds can range from 1%-5% but typically run 2%-3%.

What does ShipRx charge for the service?

There are no up-front or monthly fees. Our compensation is simply a percentage of the verified refunds / credits.

Will this affect my relationship with my carrier?

No. ShipRx's communication with the carriers' billing systems are mostly automated (IVR). Refund requests that require contact with one of their call centers are handled with the utmost professionalism. Your local rep is unlikely to be aware that an audit is being conducted. Also, keep in mind that an audit is simply returning funds to you for charges that never should have occurred in the first place. They should feel embarrassed, not bothered.

What type of errors do you find?

Our audit looks for over 40 distinct carrier mistakes. The most common recovery is for late deliveries, but others include invalid surcharges (residential, address corrections, etc), inaccurate rates, and packages manifested (label was generated and billed) but not shipped.

Do I continue to pay my carrier, or do I pay my shipping invoices through ShipRx?

You will continue to pay your carriers directly. The only potential change in your current process will depend upon which carrier you use and whether we are performing a pre-audit or a post audit.

Ok. What's the difference between a pre-audit and a post audit?

A post audit simply means that any refunds will appear on a future carrier invoice as a credit. Keep paying your invoices just the same as you do now. UPS is an example of a post audit. A pre-audit (e.g. FedEx) differs in that the refund is applied as a credit to the invoice on which the error is found. For example, if the invoice was initially $1000 and we discover $100 in eligible refunds, you would pay the revised amount of $900 instead of waiting for the $100 to appear as a credit on a subsequent invoice. Your payables process won't necessarily be affected for a pre-audit carrier and would be determined prior to the audit implementation.

How quick is the audit set-up, and how soon until we begin seeing refunds / credits?

Audit set-up is typically 3-5 business days. Refunds for FedEx will be reflected within a few days of the carrier invoice date. UPS refunds will appear on a future invoice in 1-3 weeks depending on the type of credit.

Can you obtain credits on past carrier invoices?

With UPS, we can go back as far as 6 months. As a pre-audit, we can only secure refunds on FedEx invoices that have not yet been paid. Refunds for late deliveries for either carrier must be requested within 15 days after the expected delivery date.

What is needed to get started?

Once our audit agreement is executed, we simply need a billing login profile so that our software can begin downloading the carrier invoices.

Negotiation Questions

Why should we use ShipRx to help us negotiate our carrier agreement(s)?

Most shippers only negotiate their agreements annually at most. Every 2 to 3 years is more common. Your carrier reps on the other hand negotiate a couple dozen annually, and they are backed by teams of marketing and financial analysts. ShipRx likewise negotiates dozens annually and evens out the playing field. We have our finger on the pulse of the shipping industry, not only because we evaluate so many carrier contracts, but also because we have been involved with the industry for decades. Our team has over 30 years of industry experience including direct carrier pricing experience.

How does the negotiation service work?

Every negotiation is unique, but each contains the following steps: 1) Benchmark your current carrier agreement and quantify potential improvements, 2) Develop strategy specific to the client, 3) Communicate expected improvements to the carrier(s), 4) Evaluate proposals, 5) Execute and implement new agreement(s).

How long does a negotiation typically take?

Most take 8-10 weeks, but can vary by a couple of weeks either way depending upon the number of proposals evaluated.

What level of savings can we expect?

Varies. 10%-25% is common, but outcomes have exceeded 40%.

Will using ShipRx negatively affect my relationship with my shipping provider?

No. Ultimately the shipper has final say in any communications to the carriers. The negotiation process itself is designed to make things competitive without being antagonistic.

Do we have to include multiple carriers in the process, and who chooses the winning bidder?

To ensure that the bidding remains competitive and to provide the greatest number of options to choose from, we encourage the inclusion of multiple carriers, but this is not a requirement. At the end of the process, we will quantify the respective savings from each proposal and explain the pros and cons of each, but the client has the final say on carrier selection.

How is ShipRx compensated?

Our fees are a percentage of the actual savings after the negotiation is complete. There are no up-front costs or retainers.

How is savings calculated?

After the execution of a new carrier pricing agreement, we provide the client with a breakdown of their shipping spend every four weeks. The summary displays the quantity of shipments by service and respective surcharges as well the costs associated with each. This same data is then rerated using the former carrier pricing agreement to calculate what the costs would have been prior to the negotiation. The difference between the two amounts is the savings.

We just renegotiated our contract less than a year ago, can we still use this service?

The carrier agreements can be effectively negotiated at any time and can be cancelled upon 30 days written notice.

But our agreement has early termination language...

Let's talk, (844) 774-4779.

Frequently Asked Questions

Audit Questions

Negotiation Questions

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