What to Know Before You Invest: 7 Key Questions About Shipping Software

Shipping software is an important supply chain investment – do you have all the answers?

Rising transportation costs, labor concerns, and ever-changing customer demands for faster and free deliveries make shipping one of the most critical and costly areas of the supply chain. Because of this, the role of shipping software to gain efficiency and stay competitive has become increasingly pivotal. From optimizing resource allocation to ensuring consistent customer satisfaction, the right shipping software can make a significant impact on the cost savings you find as well as the overall success of your business. 

This leads us to the question: How do you ensure that your shipping software is a good fit? Before embarking on the journey of selecting the perfect shipping software solution, it is important to take a step back and consider your answers to a series of valuable questions. We’re sharing seven questions you should ask before deciding if a multi-carrier shipping software (MCSS) solution makes sense for your IBM i/AS400 system.

7 Questions to Ask Yourself Before Buying Shipping Software

Shipping software is an important supply chain investment. Here are the top things to consider before choosing a multi-carrier shipping software solution for your business.

1. Are we doing too many things manually?

If your business is using separate, carrier-supplied systems and website searches to find the best shipping rates, you can likely add automations to your process with a new shipping solution. By fully assessing the manual effort required, you can determine the potential cost savings a MCSS solution could provide. Shipping software improves accuracy and reduces errors, avoiding costly consequences that can arise from manual tasks.

2. Are our shipping costs accurate?

It is important to audit your shipping invoices to ensure they match your contract rates, so you avoid overpaying. Cost auditing can also reveal inefficiencies and bottlenecks in your current shipping operations, allowing you to pinpoint areas where redundant tasks may be causing unnecessary costs. When you identify the areas of cost savings, you can better allocate your budget for a more efficient operation.

3. Do we have good visibility of shipments once they leave our facility?

Now more than ever, customers have high expectations for shippers to meet estimated delivery dates and provide updates throughout the shipping process. Top-tier MCSS solutions integrate seamlessly with your carriers and have options to allow real-time tracking and status updates for your customers. MCSS visibility also helps reduce risks, like supply chain delays or disruptions, which can prevent substantial financial losses for your company.

4. Do we have an efficient number of shipping staff?

Evaluating your labor force can help you allocate your resources effectively, especially in today’s labor-constrained warehouses. Industry-leading MCSS are single, fully integrated systems that seamlessly connect with your existing carriers and ERP or WMS systems, replacing inefficient carrier-provided systems. Using advanced shipping solutions can save your team time and effort, allowing them to dedicate it elsewhere. This results in improved productivity and a competitive advantage.

5. Can we scale up as needed?

Scalable shipping software integrates seamlessly with your existing software systems, ensuring that as your business scales, everything scales together cohesively. MCSS gives you the ability to automate carrier selection to find the best rates for your customer’s needs from the start, and as your business grows, you can add modules or features such as auditing, pick/pack integration, and custom filings. Investing in scalable shipping software is also a way of future-proofing your business operations, avoiding costly frequent software upgrades and keeping up with shifts in customer expectations.

6. How accessible is our shipping data?

The ability to analyze and evaluate transactional and historical data is essential for operational success. Choosing shipping software that allows you to easily view and/or export your data is the key to monitoring day-to-day shipping operations, ensuring accurate order processing and optimal resource allocation. Historical data gives great insight to performance evaluation and customer behavior, leading to data-driven strategies for future success and effective cost management.

7. How quickly will our investment pay off?

Estimating the time to achieve ROI helps align your investment with your financial goals and business strategy. This allows your company to effectively plan and allocate resources. Leading shipping software solutions, like Varsity Logistics, see their customers recoup 5-15% in overcharges and realize an ROI in just a few months. The combination of benefits that MCSS provides, like streamlined processes, automated rate shopping, batch processing, and reduced shipping errors, lead to immediate bottom line cost savings for your business.

Learn more about Varsity Logistics multi-carrier shipping software for IBM i/AS400 systems

Interested in learning more about the long term cost savings and increased operational efficiency with multi-carrier shipping software? Varsity Logistics offers a robust, industry-leading freight and parcel shipping solution for IBM i/AS400 systems that integrate seamlessly into your existing business infrastructure.

Contact our team of shipping professionals to discover how Varsity Logistics can step-up your shipping operations and revolutionize your supply chain game.

Why the IBMi Shipping Platform is Growing

IBMi’s robust AS400 operating system is powerful, stable and secure, which is why it continues to be a world-class solution.

Shipping and fulfillment is a major cog in many industries. Warehouses, supply chains and logistics all run on powerful shipping software. In this space, there are many competitors, and people often expect that the best software is going to be something new. But this is one industry where that isn’t necessarily the case. IBM shipping software, known as IBMi, has been around for decades.

Despite that, it’s still in use in countless operations around the world, and many still consider it to be the best of the best. Here’s why.

IBMi’s Simplified Concept Empowers This Shipping Software

IBM i runs IBM Power (AS400) operating system software. Anyone who’s used AS400 understands that it heralds from a time before all the current software bells and whistles existed. It’s simplified to a degree that’s hard to find in modern programming.

This simplicity – which should not be mistaken for simplistic software – leads to a robust system that struggles to fail, even when faced with monumental challenges. IBMi is reliable for the simple fact that it has fewer ways it can falter.

Advantages of IBMi

There are 3 main advantages of IBMi.

IBMi is one central system

IBMi runs like converged software. It functions like a packaged whole, allowing a central system to manage many nodes. You can run it on-premise or through the cloud, and you get the same experience regardless.

IBMi offers powerful security

Another advantage of IBMi’s simplified concept is that it adds power to security. Many of today’s modern vulnerabilities don’t exist within IBMi and AS400. It’s important to note that this power doesn’t preclude the need for security altogether, but using IBMi significantly lowers the risk of both internal and external attacks.

IBMi is a scalable solution

IBMi shipping software favors scalability. Because there are fewer cogs in the machine – so to speak – it’s easy for an IBMi system to start with a small business and handle growth all the way to the enterprise level. For example, IBMi is the system of choice for many Las Vegas casinos. It can handle large-scale work, yet it is still sensible for businesses that are nowhere the level of operations a large-scale casino would require.

4 Benefits to a Strong Shipping Software that Builds on Your Resources

Any significant investment into software has to address ROI. If it doesn’t improve your bottom line in some measurable way, it’s difficult to justify the cost of transitioning. IBMi provides several ROI opportunities, and all of them are viable for virtually any business.

Benefit #1 – Security

The first ROI potential can be found in security. Hacks and breaches are extremely expensive. As noted, IBMi, as a function of its nature, removes many security threats. Again, it’s not a foolproof system on its own, but cybersecurity teams have a much easier job ahead of them when this software is running the show.

This translates to huge savings in potential losses that can likely be averted by using this robust system.

Benefit #2 – Labor

Your second return is tied to labor. Parcel shipping on IBMi provides a multi-carrier software solution. It can offer automation in many facets of order and fulfillment, and each point helps reduce human error. 

It also improves workflow and overall fulfillment efficiency by keeping information organized and streamlined.

Benefit #3 – Customer Experience

The third return stems from improving the customer experience. When shipping and fulfillment are more reliable, customers get what they want when they want it. 

This leads to a better experience, which ultimately can translate into greater overall sales and boosted revenue.

Benefit #4 – Carrier Costs

A final return comes from saving money on carrier costs. ShipAudit is an example of an IBMi module that helps companies lower their overall shipping costs. Varsity customers estimate that they’re able to lower carrier overcharges by an average of 8 to 10 percent when they use the module. 

You can realize direct cost savings when you implement and use good software.

Varsity Logistics and IBMi

Why is IBMi still alive and well? Simply put, it performs. It is powerful, stable and secure. Those three words are more important than any other when it comes to enterprise software, and for shipping and fulfillment, IBMi is still a world-class competitor. Until something can outshine it on these vital fronts, it will continue to live a long life. Schedule a demo with a Varsity Shipping Specialist to see how our shipping software integrates with IBMi to optimize your parcel processes.

Shipping in a Post-Covid World: What You Need to Know

When it comes to shipping, the pandemic changed everything. Here is how to remain successful in a post-pandemic world.

COVID-19 caused an incredible shift in consumer and business purchasing that nobody could have foreseen coming. From traditional in-store buying behavior, to on-line purchasing, nothing will ever be the same.

This includes the world of shipping, and thus, the world of shipping software. What are the major issues the shipping industry in particular is facing moving forward? Let’s look at some of the highlights.

3 Major Shifts in the Shipping Industry

Although the pandemic impacted every aspect of shipping, we’ve identified 3 majors shifts in shipping.

Customer Expectations

Throughout the pandemic, both B2C and B2B customer expectations dramatically changed. Consumers not only prefer, they now demand:

  • Easy on-line ordering
  • Shorter order processing time
  • Up-to-date, accurate communication about order status
  • More (and cheaper or free!) shipping options – in fact, according to BigCommerce, 90 percent of consumers now say free freight is the #1 influencer to get them to buy*

The simple fact is, most consumers are becoming accustomed to an “Amazon style” experience.

Carrier Demand

Parcel carriers don’t have enough capacity to keep up during peak periods.

Shipping Costs

Across the board, shipping costs and carrier surcharges are at an all-time high, with no signs of slowing down.

E-Commerce Sales

In 2019, e-commerce sales made up about 11 percent of total retail sales. By Q2 2020, that number jumped to a record-breaking 16 percent.

Carrier Capacity

The pandemic brought on a demand not seen since the 1997 UPS strike. The 2020 holiday season saw a peak that, for the first time in decades, resulted in supply exceeding demand. Volume restrictions left many high-volume shippers scrambling to find reliable alternatives to their normal UPS or FedEx shipping carriers. The result of this fallout was widespread. Costs to ship went up exponentially, and some shippers began exploring regional parcel carriers to offset costs.

Major pain points related to carrier capacity:

  • Carriers added COVID-related surcharges and peak shipping fees
  • Shippers started seeking last-mile delivery alternatives (USPS, DHL, or courier services)
  • Guaranteed deliveries cancelled
  • Lengthier estimated delivery times

How to Manage Your Shipping Costs

Auditing carrier bills is now more important than ever. Two increasingly important components of estimating shipping costs include validating shipment addresses and managing oversized shipments. Other peak surcharges by major parcel carriers might include:

  • Jan 17, 2021 to July 3, 2021
    • $3.00 additional handling per package surcharges
    • $31.45 per item Large Package Surcharge
  • July 4, 2021 to October 2, 2021
    • $3.50 additional handling per package surcharges
    • $40.00 per item Large Package Surcharge
  • October 3, 2021 to January 15, 2022
    • $6.00 additional handling per package surcharges
    • $60.00 per item Large Package Surcharge
    • Over maximum limits will incur a $250.00 surcharge

How Consumer and Shipper Expectations Have Changed

The pandemic resulted in a dramatic shift in consumer behavior. They now have new expectations, such as wanting shipping rates and options that are clear, upfront and easy-to-find (both online and at point of order). They also expect as a standard:

  • Shipment confirmation emails
  • Detailed tracking info
  • Real-time tracking capabilities
  • Short delivery times
  • Free or discounted shipping 

How Varsity Modules Can Help Your Shipping Costs

Varsity’s modular system can optimize your entire package logistics process, including address standardization, rate shopping, shipping and tracking.

Varsity sets you up for success in this new shipping landscape. We can help you:

Calculate or shop freight charges at order entry or on your website
IMPACT: Reduce freight costs; increase eCommerce sale opportunities

Compare or shop various LTL and Parcel carrier rates/services from within your ERP
IMPACT: Reduce freight costs

Unlimited number of parcel & LTL carriers can be added
IMPACT: Reduce risk of carrier capacity issues risk

Audit parcel bills in house to check for a multitude of carrier add-on surcharges
IMPACT: Reduce freight costs

Increase packing/shipping throughput with optional advanced work-flows like printing shipping labels at the point of packing or picking
IMPACT: Reduce labor costs by increasing efficiency

Automatically send shipping confirmation emails with tracking numbers
IMPACT: Help meet customer expectations; reduce customer service calls

Optimize shipments (containerization) – Let Varsity calculate the best way to pack the order based on minimizing oversize charges and overall freight cost
IMPACT: Reduce freight costs

Take advantage of deep integration within your ERP/WMS – Varsity runs inside of your present system
IMPACT: Increase efficiency

Allow for reporting against shipping data company wide
IMPACT: Make informed decisions on freight policies

Visibility to shipping information to anyone in the organization that has an iSeries/AS400 sign-on
IMPACT: Reduce customer issue resolution time

Shipping Software ROI

The power of Varsity speaks for itself. The benefits Varsity customers see in terms of a return on their investment are clear:

  • Increase shipping through-put
  • Audit parcel and freight bills in-house
  • Allocate accurate freight cost by order, customer, freight program, etc
  • Automate international paperwork
  • Rate shop & rate quote from within your ERP/WMS
  • Optimize shipments
  • Enable e-commerce

Ready to realize your shipping software ROI with Varsity?  Request a demo with a Varsity Shipping Specialist to learn how our software can optimize your shipping program today.