Delve into the critical role of parcel data in optimizing shipping operations, especially as businesses gear up for peak season. Megan Rudolph, senior director of parcel operations at Saddle Creek Logistics, shares her expertise on how to collect, analyze, and leverage parcel data to enhance customer satisfaction, reduce costs, and ensure carrier accountability.

Megan emphasized that parcel data boils down to two main metrics: transit time and cost. She explains, “Parcel analytics is all the data that allows you to measure those two things.”

Understanding these two metrics at a granular level enables businesses to manage consumer expectations, optimize costs, and hold carriers accountable. Megan also stresses the importance of real-time data, particularly for tracking shipments and managing delivery exceptions.

Surcharges are a significant factor in shipping costs, and Megan advises businesses to closely monitor these charges to identify opportunities for cost savings. Businesses can use parcel data to negotiate better rates with carriers and make informed decisions about service selection. “Knowing how to leverage that data to negotiate is really important,” Megan notes, highlighting that businesses can shift volume to different carriers if necessary to optimize costs.

Looking ahead, Megan is excited about the potential for AI to democratize data analytics. She explains that AI can help those who are less data-savvy to easily access and interpret parcel data, thus lowering the barrier to entry for effective data use. “AI becomes a facilitator,” she says, allowing businesses to ask simple questions and receive actionable insights without needing deep technical expertise.

• Connect with Megan on LinkedIn: linkedin.com/in/megan-rudolph-688a4743
• Visit Saddle Creek’s website: https://www.sclogistics.com/

First-mile consolidation is a great way for growing SMBs to simplify their shipping logistics. Tyler Abderholden, vice president of Sendle’s global network, explains what first-mile consolidation is and why it’s beneficial.

Generally, a multi-carrier shipping strategy involves coordinating multiple pickups at different times of the day. First-mile consolidation gives small businesses a way to reap the benefits of a multi-carrier approach without the headache of multiple pickups.

Tyler explains, “One driver will show up to your operation [and] pick up all of the packages, whether they're going to carrier A, carrier B, carrier C, carrier D, and so forth. … You have a single pickup. It comes at your preferred time of day.”

With first-mile consolidation, “you are managing a single touchpoint with a single provider.” By relying on a first-mile consolidator to get packages into the hands of the right carriers, merchants avoid shipping delays caused by missed pickups. And because consolidators access volume discounts, merchants save money too.

First-mile consolidation provides access to a variety of shipping speeds, allowing customers to choose what works best for them. Tyler and Lori point out that the next-day shipping trend has begun to decline, with more consumers willing to wait longer for their packages.

Tyler says, “Everything was moving to, how do we get to next day? And now everything has been, some things need to be next day and some things are okay to take a longer time. And that's great. Customers have that choice.”

• Connect with Tyler on LinkedIn: https://www.linkedin.com/in/tyler-abderholden-06a00920/
• Visit Sendle’s website: https://www.sendle.com/en-us

Returns have come a long way since the early days of ecommerce, but they still have a long way to go. Eric Wimer, co-founder and CEO at Sway, envisions a future where returns are easy, fast, and cost-effective for both businesses and consumers. In this episode of Unboxing Logistics, he and Lori discuss what it will take to make that vision a reality.

When ecommerce was just starting, Eric explains, “most sellers didn't accept returns.” Later, as ecommerce became more popular, sellers began accepting returns—but the process was cumbersome and slow. It involved filling out a form, then waiting weeks or months for the return to be processed.

According to Eric, Amazon helped pave the way for a smoother returns system. “Historically your only option would have been, I have to mail this thing. … I've got to package everything up, box it, label it, and go drop it off. … Well, Amazon really led the way [by] starting to offer multiple options for how you would send these items back.”

Today, consumers have three options for returning products (depending on what the merchant supports):

• Shipping. Eric calls this the “traditional option.” The consumer prints a shipping label, packages the product themselves, and ships the package back to the seller.
• Drop-off. This option involves dropping a product off at a local retail location like Staples, Whole Foods, or a carrier store. Because it only requires a QR code scan, this option allows for boxless and labelless returns.
• Home pickup. Eric explains that with home pickup, “you can drop an item outside your door or choose to hand it to a driver directly, and that item gets picked up from your home. The driver scans the item in, and there's the ability for that refund to get released upon pickup.”

A great returns policy starts with simplicity, clarity, and visibility. Eric notes that many customers appreciate “getting an email once the brand receives the item in their warehouse and is actually processing it and then getting another notification once the refund has been released.”

He also points out that fast returns benefit ecommerce merchants more than you might think. “The faster that you get someone their refund, the quicker they get back into the ecosystem to shop. So there's a business case for this.”

• Connect with Eric on LinkedIn: https://www.linkedin.com/in/wimes/
• Visit Sway’s website: https://www.shipsway.com/