Parcel Shipping: Does a TMS Alone Make the Grade?

Posted on Dec 10, 2019 By tpawelka Share:

The primary capabilities of a TMS may work well for freight shipping, but they are often too broad to handle the finer nuances of parcel shipping

It’s no surprise that shipping as a whole has become more efficient with transportation management systems (TMS). TMS software was developed for planning freight movement and freight rating, load planning, inbound shipping and a laundry list of other features. But what if you’re looking to specifically optimize your small parcel shipping operation? More often than not, a TMS will fall short in this category, and that could mean added pain points, competitive disadvantage and buyer’s remorse.

Many times, companies believe a TMS is the answer to their shipping problems, but with e-commerce orders rising 17-28% each year through 2021, TMS-only shipping houses may be in a world of hurt. Why? Because TMS is overkill for parcel. The primary capabilities of a TMS may work well for freight shipping, but they are often too broad to handle the finer nuances of parcel shipping. It’s a big investment and could be a major mistake if your main focus is creating an efficient and cost-effective parcel shipping strategy.

Since most TMS providers lack the features unique to parcel shipping that many retailers, manufacturers, third-party logistics and healthcare companies need, they may miss out on providing their customers with gold-standard delivery expectations to stay competitive. Enter multi-carrier shipping software, a platform designed for high volume parcel shipping (think of it as a TMS built specifically for small parcel). This unique solution can be used on its own or integrates with a TMS to create a full shipping strategy - from freight to small parcels. In addition to offering multiple shipping methods, multi-carrier shipping software also offers a variety of benefits for companies shipping parcel.

- Increases sales: Multi-carrier shipping software offers more shipping options at checkout, which 86% of retailers agree boosts profits.

- Enforces the shipping expectation given to the customer in the cart: There are many things in the fulfillment process that could disrupt the delivery time. Shipping software is capable of selecting the lowest cost service that will enforce that customer’s expectation.

- Expands the shipper’s carrier portfolio for cost-reducing rate shopping: Shippers can take advantage of the software vendor’s relationships with major and regional carriers to ensure the best cost and type of carrier for any parcel. TMS platforms don’t offer a ton of carriers, carrier services or have the flexibility to add them seamlessly.

- Ensures carrier compliance: Shipping software allows shippers to generate carrier compliant labels, manifests and other required documentation to avoid additional fees, delays and returned deliveries (no matter the location shipped from). Shippers can also better manage complex import tariffs, packaging specifications, customs rules and regulations for international markets.

- Supports an omnichannel distribution model: Shippers can implement ship-from-store functionality and onboard carriers to support same-day delivery models.

TMS solutions alone cannot keep up with increased parcel volume and the need for specific features such as same-day delivery, especially with peak shipping season in the mix. Shippers must stay ahead of these shipping challenges, turn to multi-carrier shipping software and avoid TMS-only buyer’s remorse.

Increase Efficiency with a Multi-Carrier Shipping Software Built for Parcel

Back in 2000, shipping software technology was full of kinks and obstacles causing customer experience and satisfaction to be extremely low. Recognizing this, two US Navy veterans put their heads together to create something better - something to improve satisfaction for both the customer and the shipper; in the end saving everyone time, money and headaches. The resulting shipping software is now highly regarded in the shipping industry as the gold standard.

As the most trusted global provider of automated multi-carrier shipping software, ProShip empowers its customers to ship at lightning speeds, stay carrier compliant 24/7/365 and build stronger-than-ever customer revenue streams. With almost two decades of enterprise experience in the shipping and supply chain industry, ProShip’s time-tested technology and advanced functionality continues to remain unmatched. Retailers, manufacturers, third-party logistics and healthcare companies who choose ProShip, choose the number one in speed, compliance, reliability and experience.

We’re not like those other guys. We understand that your business is more than boxes and labels - it’s about the customers you serve, the moments you help create and the effort it takes to keep them coming back time and time again. If you’re focused on parcel, a TMS alone will not suffice. Put an emphasis on your parcel shipping success and go beyond the box with ProShip.

This article was originally published in the November-December 2019 issue of PARCEL Magazine. View the original.

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