Selecting a Multi-Carrier Shipping Solution

To address all three needs, manufacturers should consider a TMS for parcel solution.

These systems give enterprises the ability to tap into a wide array of parcel carriers and services, increasing flexibility and greatly reducing shipping costs and the need for IT resources. But how do you know which shipping solution is right for you?

One Platform, Many Processes

Selecting a TMS for parcel solution for your business is a serious undertaking. After all, this system will touch countless processes in your organization – from customer service and the warehouse floor to financial administration and supply chain planning.

Therefore, making an informed decision is vital. To help you make the right choice, we’ve created this checklist for manufacturers, which contains the most important factors to consider in your selection process.

Carriers, Services & Procurement

The core of any great TMS for parcel solution is a wide network of carriers from which manufacturers can choose. And note that ‘carrier’ does not always fit the traditional description here.

Many local branches of global carriers operate as separate entities, each with their own labeling and IT requirements, so it’s important to always verify whether a vendor supports the specific carrier services in your key geographies.

Carrier Library Coverage - The number of carriers and services supported, and the extent to which these cover your most important markets – now and in the future.
Carrier On-Boarding - What costs and lead times apply to adding new carrier services?
Rate-Shopping - The ability to compare costs between different carrier services for a shipment in real time.
Rate Simulation Engine - The ability to calculate the impact of adding a new or adjusted carrier contract on your bottom line, accounting for attributes such as origin and destination, modes and carrier services.

Connectivity & Data

Parcel shipping isn’t a stand-alone process. It is fed, for example, by data from e-commerce or OMS systems to orchestrate fulfillment. Therefore, any good TMS for parcel solution facilitates connectivity and embraces cloud hosting.

SaaS-Software & Cloud-Hosting - The ability to ship parcels via an application hosted in the cloud, connected to your existing systems via an API or integration. This SaaS infrastructure offers greater flexibility and improved data security over typical on-premise shipping software installations.
Front-end Integrations with e-commerce Software and Platforms - Availability of an off-the-shelf integration/partnership with your current e-commerce systems and platform partners (e.g. Amazon).
Back-end Connectivity - Availability of an off-the-shelf integration/partnership with your current back-end systems such as WMS, OMS or ERP.
API Structure and Documentation - The ease with which the TMS for parcel can integrate with other systems via an API and the level of support in this process (API documentation, sample code, technical project management)

Operational

While carrier network size and system connectivity are both vitally important in a TMS for parcel solution, the true value of these systems is created on your warehouse floors.

The power to operate at scale while maintaining speed is essential for any enterprise shipper, and this is where the differences between vendors are often revealed.

Labeling, Documentation and EDI - The shipping documentation output; is this only shipping labels or also customs forms and/or end-of-day manifests?
Business Rules - An engine that automatically books shipments with ‘best-fit’ carriers based on business rules.
Consolidation of Cross-Border Shipments - The ability to consolidate cross-border shipments going to the same geographic area. By skipping zones and avoiding accessorial charges, this significantly reduces costs for cross-border processing, brokerage and insurance.
Real Time Performance Analysis and Re-routing - The ability to compare selected carrier services against actual carrier performance to find routing alternatives with lower cost implications and/or faster delivery times.
Automatic Address Verification - The ability to verify addresses upfront to prevent missed deliveries.
Service Speed - The response time of the API / service when booking shipments and generating shipment documentation.

Tracking & Dashboarding

From a shipper’s perspective, the job may be done when the parcel leaves the warehouse. But for customers, this is just the beginning.

Therefore, the ability to keep both customers and the customer care team updated on all shipments in real-time is essential. A great TMS for parcel solution not only standardizes the shipping process across carriers; it will also create a uniform tracking experience. Ideally, the system allows manufacturers to include custom branding in all communication.

Real-time Track & Trace Notifications - Tooling to send uniform, branded Track & Trace updates across all carriers.
Real-time Track & Trace Portal - Branded website or portal via which customers can Track & Trace shipments in real-time (instead of visiting individual carriers’ tracking websites).
Exception handling - Proactive delivery event alerts (e.g. delays or re-routing).
Customer Service tools - Real-time shipping insight across all carriers, allowing customer service teams to proactively respond in the case of delivery exception events.

Reporting & Finance

To make informed business decisions, manufacturers want to rely on ‘a single source of truth. This means data has to be connected across all systems in real time.

A powerful TMS for parcel solution eliminates data silos, allowing instant access to carrier performance data and fueling accurate financial reporting.

Delivery and Carrier Performance Analysis - The ability to monitor delivery performance per carrier, warehouse or geography.
Invoice Matching - Automated invoice audits to identify and adjust improperly invoiced items based on contracted rates, claims and “not shipped” transactions.

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