Making the Most of Your Parcel Shipping Data
by Jaidyn Farar
In order to optimize your parcel shipping, you need full visibility into what’s going on: how long it takes for orders to be delivered, how much it costs to ship the average package, and which carriers regularly drop the ball.
In a recent episode of Unboxing Logistics, Megan Rudolph from Saddle Creek Logistics explains how businesses can collect this vital parcel data—and what to do once they have it.
To hear all of Megan’s insights, watch the full podcast episode here. No time to listen? No problem! Just keep reading for a quick recap of some of her most important observations and advice.
What is parcel analytics?
As Megan explains, parcel analytics is all about taking shipping data and turning it into actionable insights. For example, by analyzing transit times, you can assess whether you're meeting customer delivery expectations and identify opportunities to optimize carrier performance.
Megan also points out that if carriers miss service guarantees (like overnight or two-day delivery), parcel analytics can help you secure refunds.
What parcel data should you be tracking?
According to Megan, every business should be measuring two key metrics: transit time and shipping cost. Transit time is how fast packages reach customers, with shorter times leading to greater satisfaction. Shipping cost directly impacts profitability, because despite what marketing may say, there’s no such thing as free shipping.
How can you avoid “data overload”?
When you’re sending more than a handful of packages a day—and even small businesses usually are—shipping data accumulates quickly. How can you parse through mountains of information to reach meaningful conclusions?
For starters, Megan recommends having a well-defined goal. She suggests creating a why statement that guides the data analysis process, noting that “if you [try] to collect data without a why behind it, [it’s] going to be more challenging.” Your why statement should explain exactly what you hope to achieve by collecting and analyzing data—in other words, the value it will add to your business.
Every organization’s why statement will differ, but Megan gives one great example: using data to choose the quickest and most cost-effective shipping method for each package.
By analyzing both cost and transit time data, you can make more informed decisions about service selection. For instance, if you need to ensure delivery within three days, you can look at your historical shipping data to quickly identify the most affordable services that meet that timeline.
(Note: Solutions like EasyPost’s SmartRate API automate the optimization process.)
Where can you collect parcel data?
When it comes to collecting parcel data, Megan recommends going directly to your shipping carrier(s). This can pose some challenges due to varying methods of data delivery, but building strong relationships with carriers will help streamline things.
Having a team that understands how to interpret this data is essential, especially if you’re a large shipper.
But technology can help bridge the gap if you don’t have a dedicated data team (or if they have more important things to focus on).
Megan says, “There are a lot of great tools out there. There are some great resources [that] put everything in the dashboard for you while also giving you the ability to drill down to package-level detail. So you can look at things like overall delivery performance, average cost, and even … the whole order lifecycle.”
How can parcel data help you meet customer expectations?
Once a customer places an order, expectations are set: the package is on its way and should be delivered within a specific timeframe. But as we all know, factors outside of your control, like weather or carrier delays, can impact delivery.
Having real-time access to parcel data allows you to communicate during the transit phase, letting customers know ahead of time when issues arise.
Megan stresses the importance of communicating key milestones, such as when the order is picked up or out for delivery. Keeping customers updated about delays, such as a shipping setback that pushes the delivery back by a day, helps manage frustration. On the flip side, it's equally valuable to inform customers when things go right. If a package gets delivered early, Megan says, you might send a message letting the customer know that you exceeded their expectations.
How often should you be analyzing data?
Megan recommends reviewing parcel data on a monthly basis, as this gives you enough time to identify patterns without being overwhelmed. However, if you're a high-volume shipper, more frequent analysis—like weekly reviews—can be useful.
How does historical data help with cost optimization?
While reviewing data monthly is a must, businesses shouldn’t forget about the big picture. By retaining shipping data for years, you create opportunities to see long-term trends—trends that reveal opportunities to speed up deliveries or decrease costs.
When analyzing historical data, Megan advises businesses to focus on surcharges and rate increases, which generally happen annually. As you review past data, you can predict how future rate hikes will impact your business and budget accordingly.
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The Unboxing Logistics podcast was created to help business owners and logistics managers improve every stage of the fulfillment process, from when new inventory arrives to when a package arrives on the customer’s doorstep. We bring in industry experts to discuss common shipping challenges, uses for artificial intelligence and automation, time- and money-saving strategies, and more.
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