Frequently Asked Questions
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.
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%.
There are no up-front or monthly fees. Our compensation is simply a percentage of the verified refunds / credits.
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.
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.
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.
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.
Once our audit agreement is executed, we simply need a billing login profile so that our software can begin downloading the carrier invoices.
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.
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).
Most take 8-10 weeks, but can vary by a couple of weeks either way depending upon the number of proposals evaluated.
Varies. 10%-25% is common, but outcomes have exceeded 40%
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.
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.
Let’s talk, (844) 774-4779.
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