4 Reasons to Invest in Parcel Shipping Technology

Many organizations now realize the benefit of capturing shipping data with parcel shipping technology and using Business Intelligence to streamline shipping processes in order to expedite speed and improve cost efficiency.

Moreover, senior leadership at these organizations are adopting digital technologies and implementing digital automation to cultivate shipping as a core business capability.

But technology isn’t new to shipping. For example, carriers such as UPS, FedEx, and DHL have long used electronic data interchange (EDI) to transmit information to shippers, and some logistics professionals are using Transportation Management Systems (TMS) to execute complex, multi-modal freight shipments across the globe.

However, studies have found not everyone is ready to adopt new technology, particularly when it comes to parcel shipping. According to the Gartner 2019 Market Guide for Multicarrier Parcel Management Solutions, “Most companies today operate in reactive execution mode for parcel and are missing great opportunities to optimize and consolidate their parcel shipping as well as shop for more varied rates and/or services.”

The Time is Ripe for Parcel Shipping Technology

While the reason for slow technology adoption rates in parcel shipping isn’t immediately evident, most industry analysts agree, given the rise in e-commerce and the pressure created by the likes of Amazon and Alibaba, companies are reaching the point of no return – where technology is no longer a “nice to have,” it’s a “must-have” to successfully – and cost efficiently – meet today’s consumers’ same-day/next-day delivery expectations.

In fact, a recent State of the Industry Report prepared by A. T. Kearney envisions a future with digitally connected, flexible supply chains from end-to-end. Per the report, “Inevitably winners and losers will emerge as companies that make the right technology investments and strategic choices outperform others.”

Fortunately, now is the perfect time to invest in new parcel shipping technology for four key reasons:

• Today’s parcel shipping systems are more sophisticated than ever. Featuring easy integrations to business-critical systems such as an ERP or WMS, state-of-the-art Business Intelligence tools for accurate data capture and reporting, and the ability to flag invoice issues – parcel shipping systems allow shippers to finally take the driver’s seat and implement smart strategies that fuel business KPIs.  And if our own development team is any proof: parcel shipping technology is poised for continuous improvement, delivering ongoing, cutting edge functionality and operational platforms that are increasingly intuitive and user friendly.
• Today’s parcel shipping systems are more global than ever. For shippers looking to expand their footprint worldwide, some parcel shipping system providers guarantee label and documentation compliance with global carriers as well as enable consolidated shipping to cut costs and increase efficiency by combining shipments headed to the same geographic area.
• Today’s parcel shipping systems are SaaS-based. Now that cloud-based systems have gone mainstream, companies of all sizes can enjoy their benefits with minimal upfront costs and IT investment. Using a SaaS-based system will enable companies to realize a return on investment quickly — without the hit of an initial investment and with the benefit of accelerated implementation and integration processes. And an added incentive: security. A reputable parcel shipping system vendor will potentially provide more robust data security than a company could by itself – particularly if there’s a lack of deep IT resources, staff, controls, or expertise in house.
• Today’s parcel shipping systems work. Logistyx customers report an average 25% savings on parcel shipping spend while successfully meeting delivery commitments, and time to value on the parcel shipping system itself is often six months or less. Companies are also leveraging parcel shipping technology to automate manual work, scale their business without adding resources, and enter new markets quickly – yielding further dividends from the initial investment.

Today’s parcel shipping systems aren’t just tactical execution tools – they’re the secret sauce in leading companies’ formulas for decreasing net landed cost of goods.

Related: How a Transportation Management System (TMS) for Parcel Shipping Empowers Shippers

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