Quarterly Live Group Demo Watch Now

Sifted logo

5 Reasons Automating Parcel Bill Payment Makes Sense

by | Sep 25, 2018

3 min read

So many of the expenses we have now – think your mortgage, car payments, utilities, cell phone, just to name a few –are automatically paid electronically. It’s one of the modern conveniences afforded us by technology we have come to take for granted.

As a business leader, have you fully accepted such simplicity in paying your organization’s expenses? The answer is probably “yes, but not always.” Chances are how you pay your FedEx and UPS invoices currently fall under the “not always” caveat. Instead, it’s done manually and ad hoc.

But there’s good reason to change that. Here’s why automating your parcel bill payment makes sense.

  1. Consolidate the payment of all your parcel shipping accounts.
    • It’s not uncommon for companies, especially those with many accounts or multiple locations, to receive the equivalent of multiple invoices a day from FedEx or UPS. In fact, analysis shows our customers average 30 invoices a month over the past year.I know from personal experience the amount of work that requires. Frankly, it’s an inefficient use of time and resources when automated bill payment could do the work without the risk of errors or oversight.
  2. Establish a consistent process if you rely on multiple carriers – you use both UPS and FedEx, for example – or pay for multiple accounts.
    • The challenge of paying so many invoices for multiple accounts is further exacerbated when multiple carriers – and payment processes – are involved, from different payment methods to varied due dates. Simplify. The. Process. It can be done, and by automating bill payment, you can adhere to each carrier’s preferred payment method without added effort to your team. Plus, you’ll have a “single source of truth” for your payment history.Put simply (my favorite word), by taking this step – really, it’s the path of least resistance – you can even end up with payment files that can be imported into your ERP to further end unnecessary data entry and the inherent human error that comes with it.
  3. Get more of the audit credits you’re due.
    • By scheduling your payments to occur automatically, you can wait until later in each invoice’s specific payment window without risk. This matters when it comes to maximizing your refund credits.If you’re paying invoices immediately, or too early, you’re telling the carrier, “yes, these are accurate charges.” It’s easier for you or your auditor to ask for credits from carrier mistakes if you haven’t yet paid the invoice. (And, if you’re not auditing your shipping, we can help.”
  4. No more late fees.
    • Over the past 12 months, VeriShip customers paid more than $2.7 million in fees for paying the carriers. That’s wasted money going down the drain. And there’s an easy remedy: scheduled parcel payment maximizes the time you have your money in hand while ensuring you’ll never be hit with a late fee again.
  5. Use FedEx? Short pay is a necessary evil that gets easier.
    • You won’t have to make your best guess at accounting for your credits before you pay FedEx – also known as short paying your invoices. Parcel bill payment automation takes care of the math and ensures you don’t over or underpay the carrier. Timing is key: trying to reconcile invoices against payments can be tricky because FedEx adjusts the original invoice amount to reflect the approved credit.
  6. The convenience comes with more savings and operational efficiency at no added cost to you.
    • The best news: consolidating and automating the parcel bill payment process doesn’t cost anything. Contact us at VeriShip to learn more.

Elaine is VeriShip’s Chief Financial Officer.

Topics: Accounting & Finance, Bill Pay, Data Science
Topics

Check out related resources at Sifted.

Parcel Carrier Diversification 101

Parcel Carrier Diversification 101

Last mile delivery has never been more important to businesses. In 2023, the global last mile delivery market was ...
Read More
RILA LINK 2024 Recap: The Cutting-Edge of Retail Supply Chains

RILA LINK 2024 Recap: The Cutting-Edge of Retail Supply Chains

At the end of February, supply chain leaders from the nation’s largest retailers converged in Dallas for the ...
Read More
Sifted’s Caleb Nelson Named 2024 “Pros to Know” Award Recipient

Sifted’s Caleb Nelson Named 2024 “Pros to Know” Award Recipient

KANSAS CITY, Missouri - Sifted, the trailblazer in Logistics Intelligence™ is proud to announce that Caleb Nelson, ...
Read More
Meet Sifted at LINK 2024

Meet Sifted at LINK 2024

At the end of February, the top supply chain leaders from some of the nation’s largest retailers will converge in ...
Read More
Parcel Carrier Comparison Guide

Parcel Carrier Comparison Guide

In the intricate landscape of parcel shipping today, shippers navigate a complex web of carriers, each with its ...
Read More
Amazon Shipping, Seller Fulfilled Prime, and More: Matt Snyder’s Insights and Advice to Sellers in 2024

Amazon Shipping, Seller Fulfilled Prime, and More: Matt Snyder’s Insights and Advice to Sellers in 2024

Amazon took the supply chain world by storm in 2023. They announced Amazon Shipping, a FedEx and UPS competitor ...
Read More
2024 Shipping Industry Outlook: Top Trends Driving Down Costs + How to Capitalize

2024 Shipping Industry Outlook: Top Trends Driving Down Costs + How to Capitalize

Over the last few years, soaring shipping costs, unpredictable rate hikes, and a challenging logistical landscape ...
Read More
Sifted Celebrates Achievement as 2023 Top Tech Startup by Food Logistics, Supply & Demand Chain Executive

Sifted Celebrates Achievement as 2023 Top Tech Startup by Food Logistics, Supply & Demand Chain Executive

Kansas City, Mo – Sifted, a leader in Logistics Intelligence, has been recognized as a 2023 Top Tech Startup by ...
Read More
11/27/23 Parcel News Update

11/27/23 Parcel News Update

1. Amazon’s Volumes Surpass FedEx and UPS Amazon delivered more parcels in 2022 than UPS, according to internal ...
Read More
11/20/23 Parcel News Update

11/20/23 Parcel News Update

1. USPS Announces Tentative Rate Increases for 2024 The United States Postal Service has announced rate increases ...
Read More
11/13/23 Parcel News Update

11/13/23 Parcel News Update

1. Experts Share Attention-Grabbing Items from 2024 GRIs Supply Chain Dive interviewed industry experts, including ...
Read More
2023 Holiday Shipping Deadlines

2023 Holiday Shipping Deadlines

It’s the most wonderful time of the year? It will be if your customers receive their orders on time. The major ...
Read More

How Sifted Works

Connect to
your account

Sync
your data

Power your
dashboards

Get Your Logistics
Intelligence Demo

Strategic ways to prevent loss down the line

Services you could be utilizing right now for savings

Ways to cut material costs without cutting quality

Are you an FBM (fulfillment by merchant) Amazon seller?

Check out our Marketplace Intelligence solutions to protect your bottom line.

Shipping Insights & Alerts
Get updates and track the things impacting your business most

Decision Support
See how supply chain adjustments pay off before you pay out

Carrier Management
Streamline how you manage your carrier operations and contracts

Business Automation
Let software do what it does better than people can

Seller Insights
Measure and monitor with confidence.

Sales Visualization
Shed new light on your sales data.

Fee Analyzer
Understand the impact of ever-changing FBA fees.

FBA Audit & Recovery
Secure money you’re owed from Amazon.

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM is impacting you

Podcast
Hear from industry experts on LeaderShipping

Case Studies
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate your CO2 Emissions

Thought Leaders
Meet the people behind the technology

Guides
Download free reports and expert how-tos

Demo
Get a personalized tour of our software

About Sifted
Get to know Logistics Intelligence

Logistics Intelligence
For parcel shippers

Marketplace Intelligence
For Amazon FBA sellers

Let's get you to the right place!

SIFTED DASHBOARDS
For parcel shippers

AMAZON Marketplace Intelligence

Not sure if you have an account? Email [email protected].