Achieve Lower Shipping Costs in 2025 with Multi-Carrier Shipping Software

Discover the key to cut shipping costs and optimize operations in 2025

It may be a new year, but shipping costs are still on the rise and the pressure to stay competitive has never been higher. After 2024’s whirlwind of unpredictable surcharges, supply chain disruptions, and customers with ever-growing demands, the stakes are crystal clear: if you’re not actively managing your shipping costs, you’re losing out. As delivery windows shrink and customer expectations expand, businesses are left to navigate these soaring expenses.


The good news is the key to tackling these rising costs and staying ahead is right at your fingertips: Multi-carrier shipping software (MCSS). This powerful tool helps businesses optimize their shipping processes, improve efficiency, and unlock significant cost savings. Let’s dive into how this technology is your one-way ticket to keeping costs in check and delivering excellence in 2025.

Looking at the year ahead, there are several key challenges stacking up against businesses who are trying to keep their costs in check. While many of these issues are not new, they still show no sign of easing up. Some of the most pressing factors impacting shipping costs in 2025 are:

  • Rising Fuel Surcharges and Carrier Rates: Fuel surcharges have become a normal part of the shipping world and from what we can tell, they’re here to stay. With fluctuating oil prices and increased transportation demand, carriers will continue to pass these costs onto shippers. Additionally, many carriers applied general rate increases (GRIs) in 2024 and aren’t predicted to lower them this year.
  • Increasing Complexity in Customer Demands: Customers expect faster delivery times, free shipping options, and more flexibility around returns – all without a price increase. This shift in consumer behavior is putting a strain on businesses, as they face higher pressure to deliver quickly while still absorbing the costs of premium services like expedited shipping and same-day delivery.
  • Supply Chain Disruptions and Workforce Challenges: The unfortunate fact is that many of these disruptions are unforeseen and far from over. We saw various instances throughout 2024 from weather devastation to worker strikes. And with the possibility of port congestion and labor shortages in transportation and warehousing, businesses are facing continued uncertainty around when and how goods will move. These disruptions not only delay shipments but also add extra costs to the equation, as companies must find more expensive alternatives.

While these challenges may seem overwhelming, they demonstrate the necessity of adopting smarter and more adaptable shipping strategies. Multi-carrier shipping software equips businesses with the tools to navigate this complex landscape, enabling data-driven decisions that drive down costs and enhance operational efficiency.

As shippers grapple with climbing shipping costs and more complex operations, multi-carrier shipping software provides businesses with a reliable way to cut expenses. By leveraging its advanced features and strategic functionalities, this technology delivers significant savings without compromising service quality. Some of the essential ways multi-carrier shipping software helps lower shipping costs includes:

  • Rate Shopping: Multi-carrier shipping software has the ability to compare shipping rates across multiple carriers in real time. Instead of being locked into a single carrier, businesses can identify the most cost-effective options for each individual shipment.
  • Optimized Carrier Selection: The shipping software doesn’t just focus on cost; it takes into account other critical factors like transit time, service type, and carrier reliability. By analyzing these variables, this solution automatically selects the optimal carrier for each shipment, striking a balance between cost savings and customer satisfaction.
  • Data-Driven Insights: Leading MCSS solutions collect, organize, and store historical data that shippers can use to identify trends and analyze areas for improvement. This enables businesses to adjust their strategies to minimize expenses and improve their operational efficiency.
  • Mitigating Surcharges: Some surcharges, like those for residential deliveries, address corrections, or oversized packages, can quickly add up. MCSS helps mitigate these costs with features like address validation, choosing the right service for each shipment, and identifying the ideal packaging to avoid unexpected fees.
  • Efficient Packaging: Containerization processes determine the best way to pack items to reduce dimensional weight charges and minimize wasted space. This not only lowers shipping costs but also contributes to a more sustainable shipping strategy by reducing packaging waste.
  • Streamlined Operations: MCSS solutions with the ability to integrate directly with your existing Enterprise Resource Planning (ERP) system and Warehouse Management System (WMS), enable streamlined workflows and eliminates manual processes. This operational efficiency translates into lower labor costs, fewer errors, and faster shipping times which opens the door to higher savings.

By tackling these key cost drivers, multi-carrier shipping software equips businesses with the tools needed to remain competitive and financially resilient in today’s demanding shipping landscape. But not all solutions are created equal – let’s explore how Varsity Logistics’ multi-carrier shipping software goes beyond the basics to deliver unmatched value and return on investment (ROI).

Investing in multi-carrier shipping software is a smart move, but the true value lies in choosing a solution that maximizes your ROI. Varsity Logistics’ Multi-Carrier Shipping Software, designed exclusively for shippers on the IBM i (AS/400) Power systems, does just that. Our shipping software combines robust functionality, seamless integration, and unparalleled support to help businesses achieve measurable cost savings and operational efficiencies.

Comprehensive Rate Shopping Across Parcel and Freight

Varsity’s automated software enables businesses to compare rates across both parcel and less-than-truckload (LTL) carriers simultaneously in real time, ensuring every shipment is assigned to the best-fit and most cost-effective option. By offering this dual capability, it eliminates the need for separate systems, reducing complexity while increasing savings. [Read more about our advanced rate shopping capabilities.]

Automated Carrier Selection

Choosing the right carrier involves more than just finding the lowest price. Varsity’s software utilizes an advanced shipping module, ShipSelect, to evaluate critical factors such as transit time, carrier preference, mode, and carrier performance. It recommends the optimal carrier for each shipment while ensuring compliance with routing guides and business requirements. This level of precision ensures businesses meet the customers’ shipping requirements while maintaining cost efficiency and service reliability. [Learn more about Varsity’s ShipSelect module.]

Data-Driven Optimization for Smarter Decisions

With Varsity, businesses gain access to a powerful analytics tool, Transdata, that addresses the data challenges often faced in shipping operations by automatically extracting and organizing historical data from transaction files. This empowers shippers to monitor trends, identify inefficiencies, and analyze costs across various areas, such as service type, geography, and carrier. These valuable insights allow businesses to make data-driven decisions, negotiate better carrier agreements, reduce costs, and improve their overall shipping performance. [Discover how Transdata can transform your supply chain visibility.]

Precision Packing

Varsity’s ShipOptimizer module tackles one of the most significant culprits of unnecessary shipping costs: inefficient packing. By automating carton selection based on item dimensions, weight, and compatibility, this advanced tool helps businesses minimize wasted space and reduce unnecessary charges. It also provides real-time visibility into shipping costs at the time of order entry, enabling more efficient operations and smarter decisions. With its ability to streamline packing processes and adapt to complex order requirements, this feature empowers businesses to cut costs while improving overall efficiency. [Learn more about ShipOptimizer and the containerization process.]

Seamless Integration and Workflows

Our MCSS is designed to integrate seamlessly with your existing IBM i ERP and WMS systems, creating a unified shipping ecosystem that reduces costs by streamlining operations. This effortless integration minimizes manual data entry, reducing errors that can lead to costly surcharges and delays. By automating workflows and synchronizing real-time shipping data, businesses gain better visibility and control over their operations, enabling more accurate carrier selection and cost-effective decision-making. With Varsity Logistics, you can enhance efficiency, eliminate redundancies, and ensure that every shipment is managed in the most cost-effective way possible.

In an era where every dollar counts and customer expectations are constantly evolving, Varsity Logistics is the trusted partner you need to take control of your shipping operations. Our multi-carrier shipping software doesn’t just help you save – it transforms your shipping strategy into a competitive advantage.


From real-time rate shopping to containerization and robust data analytics, Varsity’s suite of advanced supply chain execution modules address the biggest financial challenges shippers face today. Through seamless integrations, streamlined workflows, and improved decision-making, Varsity not only enables you to unlock significant savings, but also deliver superior service and optimize your operations. For a detailed look at how we can transform your operations, check out the Varsity Software Overview Brochure.


It’s more than just adopting software – it’s investing in a future-proof shipping solution. Ready to realize an ROI and build a foundation for long-term logistics success? Contact our team of shipping experts or schedule a pressure-free demo today. Varsity Logistics is here to help you navigate 2025 with confidence.

A Year in Review: Varsity Logistics’ Top 3 Blogs of 2024

Dive into a recap of this year’s top three blogs, offering key insights for navigating the evolving logistics landscape

In an industry filled with uncertainties, one thing is clear: the logistics and shipping landscapes will keep evolving, making it essential to stay informed about the latest trends and innovations. The year 2024 has been full of technological advancements, growing customer expectations, and increasing complexities in managing parcel and freight operations. To help shippers navigate and mitigate these challenges, Varsity Logistics delivered a year of thought-provoking blogs, designed to empower shippers with actionable insights and game-changing strategies.


As the year comes to a close, we’re taking a moment to reflect back on the blogs that made the greatest impact on our readers, not only sparking insightful conversations, but also offering practical solutions for some of the industry’s most pressing challenges. Here are the top three Varsity Logistics blogs of 2024 you don’t want to miss.

Coming in as our third most popular piece of 2024, this blog recognizes the challenges of scaling operations to handle increased parcel volumes for businesses operating on the IBM i platform. It provides a roadmap for shippers to optimize their workflows and boost efficiency without overworking their existing systems. By focusing on practical strategies, such as leveraging multi-carrier shipping software, the blog empowers readers to meet the demands of today’s fast-paced e-commerce landscape while maximizing the value of their legacy infrastructure.

Why This Blog Resonated in 2024

As parcel shipping demands continue to grow in response to e-commerce growth over the past few years, businesses still relying on the IBM i (AS/400) are in search of solutions that will bridge the gap between traditional technology and modern shipping needs. This blog’s emphasis on overcoming bottlenecks, improving throughput, and ensuring operational efficiency during crucial peak seasons is something that makes it a standout resource for logistics professionals.

Investing in a shipping software solution is no small decision. This blog earned its spot at #2 by providing a comprehensive guide for businesses looking to make the right choice in their shipping software purchase journey. The seven essential questions to ask before committing to a solution equips readers with the tools they need to effectively assess their unique needs, evaluate potential options, and future-proof their shipping operations.

Why This Blog Resonated in 2024

As businesses increasingly seek to optimize their logistics strategies, this blog stands out for its clarity and relevance. It addresses the common pain points of shippers navigating a crowded shipping software market and provides a structured approach to making informed decisions. It provides practical advice and emphasizes the importance of aligning your technology systems with long-term goals, making it a top piece for not only 2024, but many years to come.

And earning its spot as the #1 Varsity Logistics blog of 2024, this article explores how LTL APIs are revolutionizing freight shipping. By streamlining operations, enhancing visibility, and improving connectivity between shippers and carriers, LTL APIs are reshaping the way freight moves through the supply chain. A must-read for freight shippers, this blog highlights the LTL APIs’ role in enabling quicker decision making, optimizing routes, and boosting overall efficiency.

Why This Blog Resonated in 2024

As the supply chain continues to evolve and grow more complex, the need for innovative solutions like LTL APIs becomes more crucial. This blog stands out because it provides a straightforward, actionable look at a technology that is significantly transforming the logistics industry. The real-world benefits discussed in the blog such as cost reduction and improved customer satisfaction make it the top performing blog of the year.

Looking back at the top three Varsity blogs from this year, they deliver several key lessons that can help businesses shape the future of their logistics and shipping strategies, including:

  • Embrace Innovation: In a fast-paced business environment, embracing innovation and technological advancements is essential. Partnering with a shipping software solution provider that shares this mindset is equally critical. Such a partnership ensures you can effectively streamline operations, improve efficiency, reduce costs, and enhance the customer experience. Together, you can remain competitive, adapt to industry changes, and unlock even greater potential for success.
  • Assess and Invest Wisely: Investing in shipping software should not be taken lightly – this process deserves a strategic approach. Asking the right questions prior to making a decision ensures you invest in the best shipping solution for your business’s unique needs and long-term goals.
  • Leverage Your Systems Effectively: For businesses still operating on platforms like IBM i (AS/400), moving off the platform may be a long-term goal – but timing is everything. In the meantime, the focus should be on optimizing and integrating these systems with trusted solutions that enhance productivity and efficiency. By taking this approach, you can address immediate challenges and meet current operational demands, all without disrupting your existing infrastructure.

Looking Forward to the Path Ahead

While 2024 may be wrapping up, the logistics industry will continue to evolve at an accelerated pace as we transition into 2025. The insights shared in not only our top three blogs, but all of our blogs this year provide a strong foundation for businesses to take future challenges head-on and seize new opportunities. From leveraging cutting-edge technologies to optimizing existing systems, the key to success lies in staying informed, adaptable, and proactive.


Want to get a head start on your 2025 projects? Reach out to Varsity Logistics today to ensure you’re partnering with the only holistic shipping solution built for the IBM i. Varsity Logistics looks forward to continuing sharing valuable insights and seeing what the year 2025 will bring to the supply chain and logistics industries!

Top 3 Takeaways from The Varsity Logistics Session at ProS Who Know 2024

Dive into the top 3 takeaways you missed at our session during this year’s virtual event

Another successful ProS Who Know Virtual Event has come to a close and Varsity is thrilled to have been a part of it. This annual webinar event, hosted by ProShip, Inc., is a one-of-a-kind opportunity to hear from industry professionals, supply chain experts, and logistics leaders on a wide variety of crucial and timely parcel and LTL shipping topics. For the second year in a row, Varsity Logistics participated in a webinar session, this year joined by experts from customer companies, 3PL NRS, Inc. and rug retailer Gertmenian.


While last year’s webinar focused on unexpected shipping costs, this year’s insightful session was focused on the pain points associated with utilizing multiple carrier systems in today’s modern supply chain landscape. Are you regrettably thinking to yourself, “this sounds great, but unfortunately, I missed it”? Don’t worry – we’ve got you covered. While ProS Who Know 2024 might be officially over, not only can you view the on-demand session recording, but we’re also diving into the top three takeaways from this year’s session.


Here’s what you missed at…


[Unearthed Pain Point] Carrier System Memorial Service: A Farewell to Utilizing Multiple Shipping Systems

For businesses managing multiple carrier systems, shipping logistics can feel disorienting. Rather than forming a unified picture, these systems work independently of each other, causing a tangled web of processes, interfaces, and data that doesn’t connect. Each carrier system likely needs their own integrations with other essential software such as enterprise resource planning (ERP) systems and warehouse management systems (WMS), resulting in a fragmented experience that’s as time-consuming as it is confusing.


More than just the chaos disjointed systems create is the potential of siloed data. When using multiple shipping systems, data can get trapped in different systems that don’t communicate with one another. It also likely looks completely different in each system. Not only can the lack of connectivity lead to unnecessary manual processes that absorb valuable time, but it also leads to increased errors which can snowball into major issues such as inaccurate shipping labels, incorrect tracking information, and delayed deliveries (yikes!).


Furthermore, each shipping system comes with its own interface and workflows, making it far from intuitive for staff to navigate. System usability is crucial as it takes a lot of time and money to train staff to properly use them. However, throwing several different systems into the mix creates a steep learning curve, increases onboarding time, and leads to a greater chance for mistakes – all issues that would be avoided with seamless system integrations.

“Integration is a big piece of it. When looking at systems, it was a big deal for us to make sure that [it] not only integrates well, but it also is very user friendly at the other side. Training is a big part of everything, and you want to make sure not to over complicate things and make sure the user is able to use that system wisely.” – Robert Banas, Chief Information Officer at Gertmenian

When relying on multiple systems, each system adds an additional layer of complexity, slowing down operations and throughput. Without a streamlined integration, each carrier’s system can take a painfully long time to process and update – a major problem for shippers especially around peak season and high-volume periods.


This lag creates a delay at every stage in the shipping process, from order processing to label creation, forcing teams to wait for each system to catch up. Not only is this strategy a drain of valuable time, but these snail-slow processes can severely impact shipping output, negatively affecting customer satisfaction and your bottom line. A unified shipping solution eliminates these bottlenecks, streamlining the shipping process for faster operations, more efficient workflows, and increased throughput.

“With a single carrier station, we weren’t able to keep up with the shipping that we needed to do and sometimes it exceeds one thousand packages a day…it would take us two to three minutes to ship one package sometimes, by the time they filled in all the information manually.”Mike Corbo, Director of Software Development at NRS, Inc.

One thing for certain is that times have changed and relying on just one or two carriers isn’t enough to cut it in today’s fast-paced logistics landscape. There is a wide variety of shipping options now available, so businesses that choose to limit their set of carriers also choose to miss out on opportunities to optimize costs, delivery times, and service quality.


Modern shipping demands flexibility, and businesses need the capability to choose the best carrier for each individual shipment based on real-time factors such as cost, time in transit, and delivery reliability. This level of flexibility, however, becomes nearly impossible to achieve when utilizing multiple disconnected shipping systems. The lack of integration between platforms forces companies to settle for suboptimal options or spend excessive time comparing prices and services across several systems.

“These carrier-provided systems were really designed just to process and create a manifest billing file for the individual carrier. They’re so far from a good multi-carrier shipping software package”, explains Charlie Hawkins, Director of Sales at Varsity Logistics. “These carrier-provided systems create situations where you have reduced efficiency based on exceptions. There’s basically no rules there…you want a system that makes decisions based on a lot of different factors and the integration is definitely one of the big shortcomings of the carrier provided systems.”

Top-tier multi-carrier solutions eliminate these limitations, giving businesses the ability to make smarter, faster decisions, especially when it comes to selecting the best shipping option for each package. It opens the door to a world of flexibility that enables companies to stay competitive in a landscape that values efficiency and customer satisfaction so highly.

During this ProS Who Know session, we dove deep into the challenges of managing multiple carrier systems and the pain points businesses face as they struggle to keep everything running smoothly. From disjointed integrations to slow speeds and limited flexibility, it’s clear that a multiple shipping system strategy only creates more roadblocks than solutions. But as these experts discussed, the single most important takeaway is simple: businesses need to shift gears and embrace a unified multi-carrier shipping software (MCSS) solution.

Varsity Logistics deeply understands the complexities of modern shipping, which is why our industry-leading multi-carrier shipping software suite is designed to address the very issues discussed at this year’s ProS Who Know session. Built exclusively for shippers on the IBM i (AS/400) Power systems, our advanced platform streamlines the entire shipping process by unifying carrier integrations, improving speed with automated workflows, and offering the flexibility needed to optimize every shipment.


With Varsity’s MCSS, businesses can easily manage both parcel and freight shipping in one solution, eliminating the inefficiencies and limitations of using multiple carrier systems. Our software supports a wide range of carriers, allowing you to compare rates, select the best shipping options, and track shipments in real time—all from a single, intuitive interface. This not only improves operational efficiency but also ensures your team can focus on delivering the best possible experience to your customers.


Ready to discover how a unified multi-carrier shipping solution can revitalize your shipping operations? Catch up with the on-demand session and then contact our team of shipping experts today to learn more about our software suite and how we can help you navigate your shipping system pain points in the modern supply chain environment. Better shipping starts with the only holistic shipping solution built for the IBM i.

Future-Proof Your Shipping: Budgeting for Multi-Carrier Shipping Software in 2025

Shipping software should be more than a strategy; it’s a long-term investment. Does your solution level up?

As the supply chain industry continues to evolve rapidly and the intense pressures to meet consumer expectations remain, your business is faced with two options: adapt or risk falling behind.

While it may seem obvious that any business owner would adapt and continue, the requirements of the modern business world can feel overwhelming. Adapting advanced technologies and strategic planning are crucial to remain competitive, in fact 45% of CEOs believe their company will struggle to remain viable in 10 years if they continue their current trajectory.


However, many companies are still tethered to outdated and underperforming systems, struggling to keep pace with the demands of modern shipping. Businesses that rely on single-carrier shipping strategies limit their ability to pivot in the face of challenges such as carrier rate increases or service disruptions. Sticking to a single carrier or outdated carrier-based system can create bottlenecks and limit access to alternative delivery options. Relying on one carrier puts businesses at risk of delays, higher costs, and missed customer expectations.


Today, nearly 70% of operations and supply chain officers say their tech investments have not met their expectations. These complexities underscore the importance of upgrading your shipping solution to a flexible multi-carrier shipping software (MCSS). This decision is not only a technical necessity; it’s a strategic move that can enhance operational efficiency, reduce costs, and improve customer satisfaction.

But with the urgency to upgrade your shipping software comes the need for careful budgeting and planning. Effective resource allocation can make all the difference between a seamless transition or a disruptive experience. As we approach the end of the year, it is time to reevaluate if your current multi-carrier shipping software is just barely meeting or exceeding your expectations.

In today’s modern world, consumption is at an all-time high where e-commerce is booming, and customer expectations continue to increase. The question is not whether shippers should be utilizing a multi-carrier shipping software solution, but if their solution is doing what it needs to, to give businesses the opportunity to thrive. Shippers that still utilize outdated systems lack the scalability and flexibility they will need to accommodate growth in their business, whether that be increases in volume or physical locations.


Outdated carrier integrations also present an issue, as shippers who aren’t using advanced delivery options, such as same-day and next-day delivery provided by newer and more prominent carriers, can put them in a position of falling behind competitors. Additionally, limited automation capabilities in older software can lead to increased manual errors and inefficiencies in shipping processes. Modern multi-carrier solutions offer automated features that streamline workflows, from label printing to tracking updates, ensuring a smoother experience for both shippers and customers.


Beyond these challenges, today’s market is plagued with uncertainty. Political shifts, the upcoming presidential election, climate change, and severe weather events, such as the recent hurricanes we’ve experienced, all impact supply chains unpredictably. Having a flexible, modern shipping system that can adapt to these unforeseen disruptions is critical. Outdated solutions leave shippers vulnerable to these market fluctuations, while a robust, flexible system can better prepare your business for whatever lies ahead.


Upgrading your MCSS goes beyond meeting the demands of the supply chain industry; it’s a strategic investment to help benefit the future of your business. By integrating a modern solution, you will boost scalability, enhance automation, increase delivery options, and improve your business operations overall. This positions your business to effectively tackle the challenges ahead, ensuring you remain competitive and responsive in a dynamic market.

Once you’ve decided that it’s time to invest in upgrading your multi-carrier solution for 2025, it is crucial to identify the must-have features your business needs to drive efficiency, flexibility, and growth. Some key MCSS features that you should look for include:


Scalability: As your business grows, so should your shipping software. Scalable solutions ensure that your system can handle increased shipping volumes, new carriers, and expanded services without sacrificing performance and allowing your business to maintain profitability.


Cost-Effectiveness: When investing in multi-carrier shipping software, it is crucial to look beyond the initial price tag because the cost doesn’t stop there. Additional costs come with things like implementation, training, IT and maintenance that can add up significantly. A lower upfront cost may seem more appealing; however, a long-term ROI is key. Investing in a solution that reduces manual labor, minimizes errors, and optimizes carrier selection can pay for itself in the long run.


Seamless Integration: Top-tier MCSS enables seamless integration with your existing enterprise resource planning (ERP) systems, warehouse management systems (WMS), and other existing systems. This is essential for streamlining workflows, improving data accuracy, and enhancing overall visibility across your supply chain.


Intuitive Interface: The multi-carrier system you invest in should be intuitive and easy for your team to learn and use, minimizing the additional time and costs it takes to familiarize and train your staff. Utilizing a user-friendly interface can improve day-to-day productivity and allow for any employee to effectively use the software.


Variety of Carriers: MCSS solutions with a diverse carrier network for both parcel and freight ensure flexibility in meeting customer demands, mitigating disruptions, and optimizing shipping routes and costs. Having access to unique providers and more options puts shippers in a better position to respond to fluctuations in pricing and service availability as well. [Read more about the power of going multi-carrier.]


Customization: Since every business is different, your shipping software should reflect that. Leading multi-carrier shipping solutions are not one size fits all; they are built to meet each business’s unique needs. Look for a customizable solution that allows you to tailor operations such as workflows, reporting, and carrier preferences.


Customer Support: It is crucial with any sort of major technology that there is responsive and widely available customer support. Make sure to look for a MCSS solution with support that ensures reliable and prompt resolutions to potential technical issues when needed. Strong support is paramount to ensuring minimal disruptions and helps you maintain operational continuity.


Taking these characteristics into consideration when upgrading your multi-carrier shipping software will help you equip your business with the tools and capabilities needed to thrive in the ever-evolving logistics environment. These features are essential not only for meeting today’s operational demands but also for future-proofing your shipping processes.

Finding a solution that meets every functionality requirement might feel like a tall order, however, Varsity Logistics delivers exactly that. A leading provider of multi-carrier shipping software built exclusively for shippers on IBM i (AS/400) Power Systems, Varsity offers a comprehensive parcel and LTL software suite designed to tackle the challenges of modern shipping head-on. For businesses budgeting for shipping software in the upcoming year, Varsity is the optimal choice, checking the boxes to key characteristics including:

  • Scalable Software: Varsity’s multi-carrier shipping software is designed with scalability in mind, enabling businesses to easily adjust to business growth and demand fluctuations. Its proven functionality allows for seamless management of higher shipping volumes in the short term during peak seasons as well as with long term business expansion, ensuring smooth and uninterrupted operations. However, scalability goes beyond just handling higher volumes – it also means evolving with technology and the dynamic logistics landscape. Varsity’s solutions are built to tackle today’s shipping challenges – whether it’s optimizing containerization for more efficient packaging, providing real-time tracking for enhanced visibility, or offering robust reporting tools for data-driven decisions.
  • Return on Investment: Beyond the initial cost of Varsity’s software, our solution provides your business with many opportunities for minimizing and optimizing costs. Automated workflows, fewer errors, optimized carrier rate shopping, and auditing are just a few of Varsity’s key functions that can help your business save big in the long-term.
  • Integration Capabilities: Varsity’s MCSS integrates seamlessly with all major IBM i enterprise resources planning systems, warehouse management systems, and hundreds of existing home-grown and customized in-house systems as well. This allows businesses to easily implement a flexible shipping strategy without disrupting existing workflows.
  • Unified Platform: Our user-friendly interface consists of a single centralized application that simplifies operations. This centralized approach reduces training time, streamlines processes, and allows your team to manage workflows efficiently from one place.
  • Carrier Diversity: Varsity maintains strong relationships and software integrations with leading parcel and LTL carriers in North America. This extensive network provides your business with access to world-class delivery services and solutions, enabling you to save money while enhancing customer satisfaction and delivery efficiency.
  • Customization: Varsity’s software allows you to create and implement customized business rules tailored to your unique shipping needs. Whether it’s automating specific shipping workflows, creating custom rate-shopping parameters, or setting rules for carrier selection based on region, product type, or delivery speed, Varsity ensures your operations align with your business goals.
  • Customer Support: With nearly 40 years of experience in supply chain logistics and a support team whose tenure exceeds 120 years, Varsity Logistics offers unmatched expertise to help you navigate shipping challenges. Their seasoned team not only provides responsive customer support but also offers deep industry knowledge to ensure your business remains resilient in the face of market volatility.

As 2025 approaches, it’s crucial for businesses to assess their current shipping software and start budgeting for making the necessary upgrades that will maintain a shipping infrastructure capable of withstanding future challenges. Whether those challenges are market uncertainties, shifting customer demands, or unpredictable disruptions in the global supply chain, your MCSS should have your back. Budgeting for a robust multi-carrier shipping software solution is more than just a strategic move; it’s a long-term investment into your business’s operational efficiency and longevity.


Ready to future-proof your shipping operations? Take the step towards better shipping software solutions in 2025 with Varsity Logistics comprehensive software suite. We’re here to help your business grow and achieve long-term success. To learn more, please contact our team of shipping experts or schedule a demo.

Navigating Peak Season Surcharges with Advanced Rate Shopping Capabilities

Unlock the cost-saving powers of advanced rate shopping tools and how multi-carrier shipping software can facilitate them

The holiday season is one of the most crucial times of the year for businesses across the globe, especially with the massive amounts of online shopping that’s increased over the past several years. In fact, we’ve seen e-commerce revenue in the U.S. increase from $539 billion in 2019 to $1,065 billion in 2023, and it’s only expected to grow from here. For many companies, this period can either make or break their annual revenue as this time can account for a substantial portion of their profits. However, while there are plenty of exciting opportunities for businesses to increase sales, peak season comes with heightened logistical complexities for both parcel and freight shippers.


Especially for shippers, the surge in order volumes during this period becomes a focal point of concern, adding immense pressure to supply chains with warehouses, carriers, and fulfillment centers all scrambling to keep up. The recent dockworkers strike on the East and Gulf coasts, for example, further emphasized the pressure on supply chains, causing additional delays in shipments. Here’s the reality: quick delivery is no longer a luxury – it’s an expectation of the modern consumer. To succeed in the upcoming holiday peak season, businesses must not only optimize their operations but also strategically prepare for potential additional costs that come with increased demand, such as carrier surcharges.


At the heart of this preparation is the ability to control shipping costs. Avoiding unnecessary overspending and maintaining profitability during this busy time requires businesses to implement smarter tools to manage their shipping strategies. An advanced tool like rate shopping can provide shippers with a much-needed advantage. Leveraging this technology enables businesses to compare rates across multiple carriers – both parcel and LTL – based on a variety of pre-defined criteria in real-time. This ensures the most cost-effective carrier is chosen every time while alleviating the pressure of peak season surcharges.

A surge in order volumes isn’t the only surge we encounter when it comes to the holiday season. During this time, we also see a rise in shipping expenses, largely caused by surcharges – typically a flat fee – that carriers implement to help manage heightened demand and offset increased operational costs from factors such as labor, fuel, and limited capacity. These additional fees may be standard in the modern supply chain world, however, mitigating their impact on shippers’ bottom lines is still a challenge.

Key Types of Surcharges to Watch For

Regardless of the number of times you’ve navigated your way through a peak shipping season, it is still important to stay informed on the various surcharges that carriers are likely to impose during this period, including:

  • Capacity Surcharges: These are higher fees applied to shipments to offset the cost of additional handling. This can be determined by several factors including weight, size, lineal feet, and pallet space.
  • Residential Surcharges: These are higher fees for delivering to remote or densely populated urban areas, where delivery may be more difficult during peak seasons. It also helps mitigate the cost of failed delivery attempts, address corrections, and other potential delivery complications carriers can face.
  • Fuel Surcharges: These are higher fees imposed to help manage the unpredictability of fuel costs. They help cover the potential change in fuel prices during the duration of the delivery process. These additional fees are often calculated as a percentage of the base rate.

It’s important to monitor peak season surcharges notices from major carriers like, UPS, USPS, and FedEx to adjust your shipping strategies accordingly.

The Financial Impact

While a single surcharge may seem manageable, these additional fees can add up and have a significant impact on a business’s transportation costs, especially if they’re applied to thousands of packages. This can cause major strain on a company’s profit margins and heavily influence pricing strategies, shipping rates for the customer, and overall competitiveness. By staying on top of potential carrier surcharges, you can be more prepared to make informed decisions, creating better opportunities for efficient and profitable shipping operations during peak.

For most businesses, the idea of simply absorbing these surcharges is undesirable and many can’t afford to do so anyway. Utilizing carrier rate shopping not only helps shippers save money, but it increases competitiveness in a highly competitive environment. The ability to compare rates across multiple carriers gives businesses an effective way to avoid the negative impact of peak season surcharges. When various factors fluctuate, such as transit time, mode, cost, or carrier performance, rate shopping enables shippers to select the most efficient and cost-effective carrier for each shipment. This capability helps businesses make better informed decisions, leveraging real-time data to ensure shipping strategies can stay agile even in the most challenging conditions.


Furthermore, the ability to rate shop between carriers provides unmatched flexibility. With the constant fluctuation of carrier fees and other unpredictable factors, there is no guarantee that any one carrier will be available at any given time. Having the option to compare rates not only across multiple parcel carriers but also less-than-truckload (LTL) carriers ensures businesses can always find the most cost-effective and reliable shipping solution. Access to alternative shipping options ensures consistent service without being locked to a single carrier provider. This adaptability is key as it can be the difference between maintaining a profitable operation and allowing peak surcharges to devastate your bottom line. Especially in a landscape where customer expectations for fast and cost-effective shipping are higher than ever, utilizing rate shopping between parcel and LTL carriers empowers businesses to navigate holiday shipping challenges seamlessly.


By leveraging a rate shopping tool within your shipping strategy, your business will be better positioned to succeed even during the busiest and financially straining times. However, to fully embrace the benefits carrier rate shopping can deliver, shippers must integrate the right advanced technology to streamline the process and ensure your business is getting the best rates possible. An advanced solution like multi-carrier shipping software (MCSS) takes rate shopping capabilities to the next level, automating rate comparisons in one centralized platform. This ultimately gives businesses a better opportunity to make smarter, faster decisions when dealing with peak season surcharges.

By automating the carrier rate shopping process, multi-carrier shipping software enhances operational efficiency and cost-saving opportunities for shippers. Let’s take a closer look at how MCSS facilitates rate shopping:


Real-Time Rate Comparisons: Multi-carrier shipping software streamlines and automates the carrier rate shopping process – a far more efficient technique than comparing rates manually across various carrier sites. From a single, unified platform, businesses can use this software to access rates from both parcel and LTL carriers in real-time, saving shippers time on carrier selection and ensuring that each shipment is processed with the most accurate information available.


Flexibility and Adaptability: Factors like demand, surcharges, and capacity limitations can shift throughout the duration of peak season, making the availability of real-time data through MCSS essential. Having instant visibility into available carrier options is crucial for avoiding excessive fees and delivery delays. Multi-carrier shipping software equips businesses with the flexibility to quickly adapt to changing conditions, whether for smaller parcel shipments or larger freight, offering alternative carriers and services when necessary to minimize costs without sacrificing delivery speed and reliability.


Data-Driven Optimization: Additionally, advanced features like automatic rate comparison and integrated analytics empower businesses to evaluate and adjust their shipping strategies. Historical data can help companies analyze shipping patterns and carrier performance to identify key trends and optimize routes. Embracing a data-driven approach not only enhances efficiency during peak season but also puts shippers in a better position to achieve long-term success by integrating rate shopping as a key component in their overall shipping strategy.

The complexities that come with the chaos of peak holiday season aren’t going anywhere, especially carrier surcharges. However, as businesses continue to search for ways to effectively navigate these hurdles and optimize their shipping operations, Varsity Logistics stands as a trusted partner. With a comprehensive multi-carrier shipping software suite built exclusively for shippers on the IBM i (AS/400) Power Systems, our shipping solution is designed to empower businesses with the robust tools they need, like advanced rate shopping capabilities, to ensure they can effectively manage costs while maintaining top-notch service quality.


For parcel shippers, Varsity’s ShipSoft-Parcel suite offers a top-tier automated carrier selection module, ShipSelect, that evaluates every shipment based on various criteria such as transit time, cost, mode, performance, and carrier service types. This advanced functionality ensures that shippers always choose the optimal and most cost-effective carrier while also adhering to routing guides and various business requirements, all from the moment the order is placed.


Beyond Varsity’s rate shopping capabilities for parcel alone, our MCSS solution allows for advanced carrier rate shopping functionality that enables shippers to compare rates across both parcel and less-than-truckload carriers simultaneously. This automated process streamlines the best-fit carrier selection process, allowing businesses to lower transportation costs significantly, keep shipping operations running smoothly, and ultimately create a better customer experience.


Today’s ever-evolving supply chain landscape requires effective shipping management to remain competitive. With Varsity Logistics on your team, your business can be confident when navigating peak season surcharges, optimizing your shipping strategy for smooth operations and delivering positive customer experiences – all while protecting your bottom line. Ready to learn more about what Varsity can do for your business? Contact our team today or schedule a demo call with our shipping experts to take control of your next peak season.

The Power of Containerization: How it Shapes the Modern Customer Experience

Unlock the benefits of containerization for your business and how it can enhance the customer experience

Imagine you order a new product online, and within days, your package arrives at your doorstep, unscathed and on time. And with the expectations of modern consumers, this is how anyone should expect it to happen, right? However, behind the seemingly effortless delivery process lies a crucial technique that helps make it all possible: containerization. This innovative method of optimizing how products are packed into cartons, pallets and trailers based on several key factors has significantly transformed the way goods move from the warehouse to the customer’s doorstep, ensuring smooth, secure, and efficient shipping.


While containerization plays a significant role in shipping logistics, it also enhances the entire experience as a customer. From faster deliveries to better product protection and cost savings, containerization touches every part of the journey. As we dive into the world of containerization, let’s explore the ways this innovative strategy directly influences the customer journey, creating a faster, safer, and more reliable consumer experience than ever before.

It’s no secret that today’s consumer expects their goods to be delivered quickly and accurately, especially with the increased availability of two-day, one-day, and same-day delivery options. Containerization helps shippers meet this expectation. By optimizing how products are packed, this strategy streamlines the entire fulfillment process, enabling warehouses to process orders quicker and more efficiently, speeding up the shipping process overall.


Struggling with oversized boxes and finding the right fit for product after product can be time consuming and a hassle, but containerization technology ensures each item is packed into the best-fitting carton for transportation from the start. This eliminates the need for last-minute adjustments and speeds up the packing process, moving orders out the door and to the customer faster.


Beyond its work in the warehouse, cartons optimized with containerization enable more efficient loading and transportation. Containerization tools evaluate each shipment to determine whether to pack them in cartons or pallets, helping warehouses process large orders faster. For parcel, properly packed shipments take up less space, allowing carriers to fit more deliveries into a single trip. For freight, properly packed pallets allow for quick, bulk loading onto trucks, reducing handling time and expediting the shipping process. This creates shorter delivery routes and reduces delivery delays, ultimately leading to faster deliveries and happier customers.

It is typical consumer expectation that any goods they order should be protected throughout the shipping process and arrive in original condition, especially fragile or valuable goods. It is arguable that reliable shipping is just as important to consumers as speed, and this is where containerization shines. By optimizing packing choices for both cartons and pallets, containerization ensures that goods are packed securely, minimizing damage and enhancing the reliability of deliveries.


The containerization process carefully selects carton size for each individual order based on various factors such as weight and compatibility with other products. Securely packing items in a box that fits its dimensions eliminates excess space that could cause items to shift around or collide with other products. This prevents breakage, especially for products that might be more fragile or oddly shaped, while also reducing the need for excessive packaging that adds unnecessary waste and weight. By selecting the best-fit carton, businesses create more reliable deliveries and satisfied customers.


For larger shipments, containerization extends beyond individual boxes to pallets and trailers. When orders involve bulk quantities or oversized goods, this process determines whether products should be packed in cartons or consolidated onto pallets for more secure shipping. Properly stacked pallets ensure stability during transportation, reducing the risk of crushed or damaged items.


Reducing the risk of product damage also significantly lowers the number of costly returns. Properly packaged items lower the chance of crushed and damaged cartons during transportation because it allows for better stacking and load distribution within trailers, preventing tipping, sliding, or uneven weight distribution. Containerization helps ensure packages arrive at their destination in the same condition they left the warehouse, reinforcing customer trust and brand reliability.

Behind every purchase is a complex chain of decisions aimed at balancing quality with affordability. Containerization is a significant factor helping to keep prices in check. This process optimizes the way items are packed, helping businesses save on both packing materials and transportation costs – savings that often get passed down to the customer.


Have you ever received an item free floating in a box that was three times the item’s size? Not only does improper packing put the item at risk for damage, but the business is also overpaying for all the space in the box that isn’t utilized (“paying for air”). While containerization provides the ability to select the optimally sized box for each order, it also minimizes the use of oversized cartons. This significantly reduces the amount of packing materials needed, lowering the costs associated with excess packaging and filler material. Furthermore, appropriately sized packages take up less space in delivery trucks and shipping containers, allowing businesses to move more items out in a single trip.


Containerization also helps businesses decide whether an order should be packed in boxes for parcel shipping or consolidated onto pallets for freight. This flexibility enables companies to choose the most cost-effective method – parcel for smaller shipments or freight for larger loads – while optimizing the space in each. By analyzing whether it’s cheaper to ship as a parcel or freight load, containerization helps businesses avoid unnecessary costs and further control transportation expenses.


Lastly, containerization helps companies avoid costly penalties from carriers who charge based on dimensional (DIM) weight, a pricing model based on the package volume relative to weight. For example, if a carton is too large, meaning there is too much air in the box, this can trigger an unexpected dim rate. If there are dim weight charges on nearly every package a company ships out, it can create a huge expense. Containerization helps business avoid this and keep shipping costs under control by finding the right sized carton.


So where do the savings come to the customer? The savings on shipping expenses means that businesses are more likely to offer competitive pricing on products and services. Whether this is reflected in lower product costs or free or reduced shipping, the financial benefits of containerization help enhance the shopping experience overall. Customers can enjoy high-quality goods at affordable prices, knowing that the logistics processes behind the scenes are optimized to save both time and money.

Containerization has redefined how businesses handle shipping, providing a cost-effective, secure, and efficient way to package and deliver goods. But while the benefits of leveraging containerization are already substantial, companies can take this efficiency even further with advanced packing technology. By strategically managing how products are packed and shipped, with the right tools in place, businesses can unlock even more savings, streamline operations, and further enhance customer satisfaction.

Varsity Logistics ShipOptimizer: Revolutionizing Container Packing

As shipping costs continue to rise and warehouse operations become more complex, businesses need more than just optimized cartons to stay competitive – they need smart solutions. With major carriers like FedEx recently announcing a 5.9% General Rate Increase (GRI) for 2025, controlling costs has become an even greater priority for shippers. Varsity Logistics, a leading provider of multi-carrier shipping solutions built exclusively for shippers on the IBM i (AS/400) Power Systems, offers a comprehensive suite of parcel and freight execution modules designed to help businesses revolutionize their shipping operations. Within that suite of modules is Varsity’s ShipOptimizer, an advanced containerization solution designed to streamline your packing process and reduce costs, all while enhancing the customer experience.


ShipOptimizer enables businesses to accurately predict shipping costs at the point of order, whether online or during entry, providing transparency that customers appreciate. This powerful tool can also optimize the entire packing process in the warehouse. By analyzing each item’s dimensions, weight, and compatibility, ShipOptimizer selects the ideal number and size of cartons needed for shipping. This eliminates the guesswork, reducing wasted space, packing materials, and even the likelihood of product damage that could lead to costly returns.


More than just a cost-saving tool, ShipOptimizer addresses the increasingly complex fulfillment requirements faced by businesses today. From handling split-case picking to developing pallet and trailer build plans, it transforms warehouse operations into a well-oiled machine. This results in reduced operating expenses, faster fulfillment, fewer damaged goods, and a better ordering experience for your customers overall.


By utilizing ShipOptimizer, companies can offer real-time shipping cost quotes, improve warehouse efficiency, and ensure their products arrive in perfect condition – ultimately passing down these benefits onto the end customer through lower prices, faster delivery, and higher satisfaction. To learn more about how Varsity Logistics can transform your shipping operations and help you meet the expectations of the modern consumer, contact our team of shipping experts or schedule a demo today.

Precision Packing: Revolutionizing Control, Visibility, and Compliance with Advanced Shipping Software

Discover how advanced shipping solutions can improve order accuracy, lower shipping costs, and boost customer satisfaction

The shipping industry is a crucial component of global trade, driving the movement of goods across the world. And, with the rise of e-commerce and increasing consumer demands for fast and accurate deliveries, the industry faces many complexities and pressures. Finding a way to manage vast quantities of shipments, meet diverse regulatory requirements, and integrate various technological systems at once can be a challenge. However, the need to navigate these hurdles effectively has only grown as industry competition continues to loom and customer expectations evolve.


For parcel and Less-Than-Truckload (LTL) shippers on IBM i (AS/400) Power systems, compliance and accuracy are more than just operational necessities—they are vital to maintaining a competitive edge, operational efficiency, and cost management. Accurate shipping practices ensure that packages reach their destinations on time and in good condition, minimizing costly delays and customer dissatisfaction. Compliance with carrier agreements and industry regulations helps avoid penalties and overcharges, contributing to a healthier bottom line. As transportation management becomes more complex, the importance of precision in shipping operations cannot be overstated.

We’re all familiar with the phrase “domino effect”, where one event sets off a series of additional events in a chain reaction. The same thing can happen during the shipping process, where a single mistake can lead to a cascade of costly problems. For example, an inaccurate label or compliance issue can delay the entirety of a multi-piece shipment, causing customer dissatisfaction and hefty fines.


The complexity of managing large quantities of shipments, each with unique requirements, makes it difficult to ensure that every package is correctly processed and documented. Regulatory standards and consignee requirements can vary and change often, adding additional challenges. Manual processes are prone to human error, making it even harder to maintain high standards of precision and compliance. However, this highlights the importance of accuracy and adherence to regulations in the shipping industry.


For business that fall short when it comes to shipping accuracy and compliance in their operations, they are more likely to face several pain points including:

  • Increased Costs: Errors in shipments and non-compliance with regulations lead to additional costs from returns, fines, and penalties. These costs can quickly add up, impacting the shipper’s bottom line.
  • Operational Inefficiencies: Inaccurate shipments and non-compliance require additional resources to correct, leading to inefficiencies in the shipping process. This can cause delays and disrupt the flow of goods, affecting overall productivity.
  • Customer Dissatisfaction: Customers expect their orders to be accurate and delivered on time. Shipment delays and failure to meet specific customer requirements can lead to customer dissatisfaction, negative reviews, and lost business.
  • Regulatory Penalties: Failing to meet regulatory standards and consignee requirements can not only result in significant financial penalties, but also potential legal consequences, the seizure of goods, contract termination, and more. While these penalties can increase costs, they can also lead to increased scrutiny and damage the shipper’s reputation.

Given these challenges, the need for precision and control in the shipping processes is clear. Implementing an advanced shipping solution that enhances accuracy and ensures compliance is crucial for operational efficiency, cost management, and customer satisfaction in today’s complex shipping landscape. Luckily for IBM i (AS/400) Power Systems shippers, Varsity Logistics’ ShipPack Module empowers shippers with total visibility and control of their pick/pack operations.

ShipPack is a cutting-edge solution designed to revolutionize the picking and packing process for shippers. Part of Varsity Logistics’ industry leading multi-carrier shipping software and its comprehensive suite, this module provides complete control and visibility over each shipment for both parcel and freight. It empowers shippers to confidently navigate the complexities of modern shipping, delivering precise and compliant shipments every time.

How ShipPack Works

ShipPack offers complete control of the shipping process by providing total visibility to the contents of each package via the ShipSoft database. By capturing item-level details during the packing process, ShipPack ensures that all information, including description, size, weight, and contents, is easily accessible. The module mitigates costly violations and penalties by automatically providing compliant barcodes, labels, and packing lists.


ShipPack also automatically generates Advanced Shipment Notifications (ASNs) and produces customized forms and labels to meet specific consignee requirements. This automation minimizes errors and ensures compliance with regulatory standards.


Furthermore, Varsity seamlessly connects to all custom and major Enterprise Resource Planning (ERP) systems and Warehouse Management Systems (WMS). This integration enhances operational efficiency and accuracy, allowing shippers to manage their packing process with ease. By linking ShipPack with existing ERP and WMS systems, shippers can streamline their operations, achieve better inventory control, and ensure accurate, compliant shipments, ultimately leading to improved customer satisfaction and reduced operational costs.

Key Features

The ShipPack module provides essential advantages for IBM i (AS/400) Power Systems shippers looking to improve front-line customer service, ensure order accuracy, improve their bottom line, and thrive in the modern logistics world. These advantages include:

  • Item-Specific Parcel Content Details: ShipPack captures detailed information about each item in a shipment, ensuring complete visibility and accuracy during the packing process. This capability simplifies order splitting and improves inventory management
  • Bar Code Labeling: Automatically generating UCC 128 barcodes, ShipPack ensures that packages meet consignee requirements and the contents are easily identifiable, reducing errors and speeding up the shipping process. It can also produce specialized bar codes, labels, and documents that may be required by consignees.
  • ASN Creation: ShipPack generates Advanced Shipment Notifications with line item content information, formatted for EDI transmission, a document notifying the receiver of the package contents. This automation minimizes errors and helps avoid costly penalties by ensuring accurate and timely notifications.
  • Order Reconciliation: By comparing packing lists with the order’s items as they are scanned, ShipPack verifies 100% shipment accuracy, preventing over- or under-shipping and maintaining tight inventory control.
  • Parcel Nesting: ShipPack efficiently nests parcels into one another, facilitating the building of pallets or trailers and consolidating multiple orders into a single shipment, enhancing tracking and operational efficiency.

Varsity Logistics is the leading provider of comprehensive, multi-carrier shipping software tailored for the IBM i (AS/400) Power systems platform. Beyond the advanced capabilities of the ShipPack module, Varsity’s ShipSoft-Parcel and ShipSoft-Freight Suites encompass a range of revolutionary modules designed to address complex shipping challenges, including:


Parcel-Specific Modules:

  • Ship Select [Automates the carrier selection process for parcel.]
  • ShipTalk [Provides real-time shipping communications.]
  • ShipAudit [Audits carrier invoices against carrier contracts.]
  • SpeedWeigh [Automates package weighing.]
  • ShipOptimizer [Accurately predicts shipping costs and necessary packaging.]

Freight-Specific Modules:

  • FreightPlan [Automates pre-shipment load planning process.]
  • FreightAudit [Automated freight bill processing and auditing.]
  • ShipSelect [Automates the carrier selection process for LTL.]

These modules provide shippers with essential tools to enhance operational efficiency, ensure compliance, and tackle the most demanding aspects of modern shipping. By leveraging Varsity’s holistic approach, businesses can streamline their shipping processes, reduce errors, and achieve greater accuracy and customer satisfaction.


Ready to say goodbye to adherence issues and say hello to streamlining your shipping operations for optimal precision and compliance? Discover how Varsity can transform the way you ship by contacting our team of shipping experts or scheduling a pressure-free demo today.

More Moving Parcels Equals More Costly Errors: The Importance of Auditing

Explore 3 key areas to audit in your shipping process for significant cost savings

Over the past several years, the surge in e-commerce has been record breaking. Year after year, it’s brought a significant increase in demand and volume for companies around the world. With more orders flooding in, businesses should be making more money, right? The reality is, however, that certain areas in your shipping process could be quietly draining your bottom line.


While e-commerce has transformed from a niche market to a dominant force, this rapid increase in shipping volume has pushed consumers to demand fast and reliable shipping. As businesses handle more products than ever before, the complexity of shipping logistics also grows. More parcels moving through the supply chain means more opportunities for costly errors.


Incorrect addresses, inappropriate shipping methods, and carrier overcharges are common areas where shipping errors occur, not only draining your resources but also impacting customer satisfaction. Each of these errors represents an opportunity for significant cost savings through careful auditing. By identifying and addressing these mistakes, businesses can streamline their shipping processes, reduce expenses, and boost their bottom line.


Let’s take a closer look at 3 areas in your shipping process that could be eroding your profit margins and why it’s crucial to audit them.

One of the most common and costly errors made in the shipping process is entering an incorrect address. Even the smallest mistake in an address can cause significant delays, misdeliveries, customer dissatisfaction, and additional charges. Missing an updated Zip+4 code or errors in spelling, spacing, or abbreviation are very common mistakes when it comes to wrong addresses.


When a parcel is sent to an incorrect address, or delivery is attempted to an address that doesn’t exist, carriers charge an address correction fee to provide the correct, deliverable address information back to you. For major carriers like FedEx and UPS, the average cost per address correction is $18-21 to the shipper. Also, if an address needs to be corrected, it automatically eliminates the on-time delivery guarantee, which can further damage the customer experience.

The Solution

Oftentimes, address correction fees appear on invoices without prior notice, making it challenging to anticipate and budget for these additional costs. That’s why it’s important to review your invoices and record any address changes for future shipments.


It’s also worth updating your database with corrected information for the future, or to consider shipping software that is already integrated with the United States Postal Service’s database. Ensuring your data is CASS-certified, meaning it uses the Coding Accuracy Support System (CASS) to check for accuracy against the USPS database, will significantly reduce the chances of address-related errors.


Another effective strategy is to implement multi-carrier shipping software that includes address validation features. Such software can automatically verify and correct addresses before shipping, reducing the likelihood of errors. This proactive approach not only saves money on correction fees but also ensures timely deliveries and enhances customer satisfaction. By auditing your shipping process for wrong address charges and employing these solutions, you can significantly cut down on unnecessary expenses and improve the efficiency of your operations.

Another common reason for unnecessary shipping costs is using the wrong shipping method. Choosing an inappropriate shipping option can result in higher costs, longer delivery times, and additional surcharges. This problem is often due to a lack of awareness about the most cost-effective shipping methods and the variety of accessorial fees that carriers can impose.


Selecting the wrong shipping method typically occurs when employees are unaware of the most current methods, rates, and billing programs. Carriers offer a wide range of services that can differ in rates, delivery times, and conditions. For example, UPS has 10 different service levels with varying delivery timeframe options for sending a domestic package, while FedEx has 9 options for U.S. package and envelope shipping.


Choosing the wrong method can lead to unnecessary accessorial fees, such as:

  • Dimensional (Length or Width) Overages
  • Dimensional Weight Charges
  • Collect on Delivery (COD) Fees
  • Delivery Confirmation Fees (e.g., Signature Required)
  • Delivery Reattempt Charges
  • Inside Delivery or Pickup Charge
  • Fuel Surcharge
  • Third-Party Billing Fees
  • Package Rerouting Fees (Phone request; Web Request)
  • Delivery Area Surcharges (Remote Area; Metro Service Area; Residential Area; Alaska or Hawaii; International)
  • Return Pickup Fees
  • Saturday Delivery or Pickup Fees

While it’s easy to know if you should be looking at a Saturday rate based on the expected pickup or delivery date, it’s not always easy to know if you’re selecting the right service from the right carrier for the lowest price. The complexity and variety of options make it difficult to ensure that each package is shipped using the most cost-effective method.

The Solution

To address this issue, it is important to train employees to understand and select the most cost-effective shipping options. Employees should also be aware of new offerings for residential deliveries and how those prices compare with standard/saver delivery options with a residential surcharge. Regular training sessions can help keep your team up to date with the latest shipping methods, rates, and billing programs.


Additionally, using advanced shipping software that performs rate shopping can be a game-changer for your shipping operations. Rate shopping tools work by allowing you to enter your contract rates for each carrier and then automatically compare them to find the best shipping method based on your specific criteria such as fastest delivery, least expensive option, or to meet a specific delivery date. By implementing multi-carrier shipping software with a rate shopping tool or feature, you can avoid unnecessary surcharges and ensure that your shipping process is as efficient and cost-effective as possible.

Even with accurate addresses and the correct shipping methods, your invoices may still be higher than expected due to carrier overcharges. These overcharges can result from a variety of errors, including incorrect billing rates, unanticipated accessorial fees, and miscalculated weights or dimensions. Without careful monitoring, these charges can significantly erode your profit margins.


Carrier overcharges often stem from discrepancies between the agreed contract rates and the actual charges applied to your shipments. These discrepancies can occur for several reasons:

  • Incorrect Rates: The carrier may bill at a higher rate than what was negotiated in your contract.
  • Unexpected Fees: Additional fees for services such as residential delivery, fuel surcharges, or Saturday delivery may be applied incorrectly.
  • Weight and Dimension Errors: Miscalculations of package weight or dimensions can lead to inflated charges.
  • Duplicate Charges: In some cases, the same fee may be applied multiple times to a single shipment.

Manually auditing every invoice for these errors is time-consuming and prone to human error, making it difficult to catch all discrepancies. As a result, many businesses unknowingly overpay their carriers.

The Solution

To combat carrier overcharges, it is essential to implement a robust auditing process that can catch these discrepancies. Here are a few strategies to consider:

  • Regular Invoice Reviews: Schedule routine audits of your shipping invoices to identify and dispute incorrect charges promptly.
  • Contract Rate Awareness: Ensure your team is fully aware of the contract rates you have negotiated with your carriers. Keeping a reference document handy can help quickly verify whether the charges match your agreed rates.
  • Dispute Mechanism: Establish a clear process for disputing incorrect charges with your carriers. Promptly addressing discrepancies can help recover funds and deter future errors.
  • Training: Regularly train your staff to recognize common overcharges and understand the importance of accurate documentation and prompt dispute resolution.

Another option to avoid these overcharges is hiring a third-party service. These auditors conduct thorough line-item audits of your invoices for you, utilizing their expertise to uncover billing errors and ensure compliance with contracted rates. However, while these auditors can be helpful in finding the overcharges, they end up keeping a significant amount of money for their services. This strategy can be helpful for shippers in identifying leaks in their bottom line, but the cost-sharing aspect means it isn’t the most cost-effective option.


By implementing these strategies, businesses can mitigate the financial impact of carrier overcharges. While manual auditing and monitoring are essential, they can be labor-intensive and may not catch all errors. The good news is that there are advanced solutions available to streamline and enhance the accuracy of managing shipping costs.

When it comes to auditing in the modern shipping landscape, the most invaluable option to combat overcharges is to implement automated invoice auditing as part of your comprehensive shipping software. This involves using specialized auditing functionality to review each line item on your carrier invoices, compare them against your contract rates, and rectify any discrepancies. Automated auditing software offers several key benefits:

  • Accuracy: This software can precisely match billed rates with contract rates, ensuring no discrepancies go unnoticed.
  • Efficiency: Automated processes can handle large volumes of invoices quickly, freeing up valuable time for other areas of your operations.
  • Comprehensive Review: The software can detect a wide range of errors, from incorrect rates to unexpected fees and duplicate charges.

By integrating automated auditing as part of your shipping software, you can ensure that all overcharges are identified and rectified. This not only recovers lost funds but also provides valuable insights into recurring issues, allowing you to address the root causes and prevent future errors.

To effectively address the challenges of wrong address charges, incorrect shipping methods, and carrier overcharges, a robust, integrated solution is essential. Varsity Logistics offers automated auditing solutions as part of their advanced supply chain execution modules, with ShipAudit for parcel and FreightAudit for freight shippers. Both solutions provide a comprehensive toolset designed to streamline your auditing process and maximize your savings.

ShipAudit

The ShipAudit module is integrated with Varsity’s ShipSoft parcel shipping and rate shopping software. With ShipAudit software, all overcharges are credited back to your company, not just half. Plus, having the shipping software gives you the tools you need to validate addresses in advance, keep your database up-to-date, and to find the best rates to satisfy your customers.


ShipAudit integrates address validation features to ensure accurate deliveries and minimize wrong address charges. Through sophisticated rate shopping capabilities, ShipAudit identifies the optimal shipping methods, reducing the risk of using incorrect options and avoiding unnecessary surcharges. Additionally, its automated invoice auditing functionality meticulously reviews each line item against contracted rates, swiftly identifying and rectifying carrier overcharges. This comprehensive approach not only streamlines shipping operations but also enhances cost-effectiveness across the board.

FreightAudit

For Varsity’s ShipSoft-Freight users, FreightAudit offers an advanced solution tailored for freight shippers to automate and streamline the auditing of freight bills. Designed to reconcile estimated costs with actual billed carrier costs, FreightAudit ensures accuracy and cost control across less-than-truckload (LTL), truckload (TL), and rail shipments.


FreightAudit automates the entire freight bill audit process by comparing carriers’ actual invoices with pre-negotiated rates and anticipated costs generated at the time of shipment. This meticulous comparison includes tariffs, accessorial charges, and incentives to ensure accurate billing. When bills fall within the user-defined area, FreightAudit authorizes payment automatically. In cases where discrepancies occur, bills are flagged for review, rejected, or short paid, minimizing errors and avoiding overpayments.

Take the Step to Eliminate Costly Errors

In today’s competitive logistics environment, controlling costs and optimizing efficiency are crucial to achieve and maintain success. Taking the step to address challenges such as wrong address charges, incorrect shipping methods, and carrier overcharges requires proactive strategies and advanced solutions.


Whether you’re managing parcel shipments, overseeing complex freight logistics, or both, incorporating robust auditing capabilities into your shipping software not only mitigates financial risks but also enhances overall supply chain performance. With real-time monitoring, precise invoice reconciliation, and seamless integration capabilities, Varsity Logistics’ industry leading shipping software, complete with integrated auditing solutions, empowers businesses to stay competitive in a rapidly evolving marketplace.


Ready to eliminate costly errors and automate your auditing process? Reach out to our team of Varsity Logistics shipping experts to learn more about how our top-tier shipping solutions for IBM i (AS/400) shippers can transform your operations and bring in significant savings.