Making Sense of Parcel Costs with Joe Wilkinson at Intelligent Audit

Chad Warzecha interviewed Joe Wilkinson, Vice President of Professional Services at Intelligent Audit, a technology services company focused on reducing transportation costs through automated audit and freight recovery, business intelligence, and contract negotiation solutions.

Joe talks about the carriers’ claims that recent parcel rate hikes were to better align these rates with the actual cost to deliver the service. He says that carrier financials don’t necessarily support this price hike rationale and gives some statistics to back up his point.

He shares some stories from the tough times in 2020 and 2021 when capacity tightened, noting that the companies that came out of it in the best shape were the ones that had already diversified their carrier bases.

He talks at length about diversification and national vs. regional carriers, and how to manage the maze of possibilities in order to achieve a cost-effective solution that also addresses service requirements. 

Parcel costs represent the largest portion of total fulfillment costs, so focusing here provides the most bang for the buck in terms of savings.  Joe provides advice that leverages his experience not only as a parcel shipping consultant, but as a pricing analyst with FedEx.

Learn more about Intelligent Audit at their website.

#logistics #supplychain #fulfillment #ecommerce #b2c