What data-oriented supply chain departments need to know. Supply chain departments are increasingly relying on data to drive their operations, processes, and efficiencies.
Parcel shippers must constantly monitor their parcel spend in order to find new opportunities to save money and recover lost funds.
Every year, companies spend massive amounts of money on parcel shipping with carriers like UPS® and FedEx®. But where does that money actually go?
Your 1¢ is your carrier’s $10,000,000,000. There is a simple and uniform policy that both carriers use to round any pennies on package charges in their favor.
How does a package with a sticker prices of $15 end up costing you $37? It’s the same way my “$49 per month” phone plan becomes $72 per month. And the same way a $99 airline ticket ends up costing $127. Or the way a concert ticket cost 14% more on the invoice than it did on the website used to buy it. It’s the hidden fees!
For any process or cost improvement project, benchmarking is a core component. You analyze your company’s internal key performance indicators and compare the data vs. competitors and best-in-class companies with which you want to benchmark.