What is parcel spend management?

Why is parcel spend management important?

Parcel spend management involves tracking and controlling the costs associated with parcel shipping. As shipping expenses can significantly impact a company's bottom line, effective parcel spend management ensures that businesses are not overpaying for deliveries. By optimizing shipping routes, selecting the right carriers, and negotiating better shipping rates, businesses can significantly reduce parcel shipping costs. This process also involves tracking shipping expenses in real-time, helping businesses identify inefficiencies, and ensuring that their logistics operations remain cost-effective. Proper parcel spend management also helps businesses forecast future shipping costs more accurately and allocate resources efficiently, reducing financial waste and increasing profitability.

How to do parcel spend management

To manage parcel spend effectively, businesses should track all shipping expenses, analyze shipping data to identify cost-saving opportunities, and negotiate better rates with carriers. Automation tools can be used to streamline the process of data collection, analysis, and reporting. Regular review of parcel spend metrics and adjustments to shipping strategies can help optimize costs over time.

Parcel spend management and Parabola

Parabola optimizes parcel spend management by automating data flows between shipping platforms and financial systems. With Parabola, businesses can integrate data from various carriers, track shipping expenses, and generate reports that provide visibility into parcel spend. Parabola's automation capabilities allow businesses to analyze parcel shipping data and identify opportunities for cost savings, such as selecting more efficient shipping methods or renegotiating shipping contracts with carriers. By automating these tasks, businesses can save time, reduce errors, and keep their shipping costs under control.