One of the great parts of a trade show is being able to quickly do the ‘who are you and why should I share my secrets’ dance. On the phone, it seems to take forever. In email it feels like you never get real trust and open communication. And websites always feel distorted from the reality of what really happens at a company.
At IRCE 2012 (Internet Retailer Conference and Exhibition) at Chicago’s McCormick Place this week, I met Brian Gibbs of Refund Retriever. One of the many logistics services company looking to assist businesses in the ecommerce channel. As you may guess Refund Retriever audits your shipping bills with FedEx and UPS.
One of the takeaways for me at trade shows is learning what you should be concerned about in your business. If there is a business performing a function, there is a good chance it is an issue that should be looked at. If you are shipping and don’t know your costs, it seems logical that you are not paying attention to a major cost center. While UPS and FedEx have incredible world class IT systems, there are still incredible number of hands in the system that can make mistakes. The amount of speed means that mistakes can and do happen. That is OK is there a need to audit?
What does become clear is that all businesses need to spend at least a few minutes looking to see what if they could improve their shipping costs, or reduce their error rate, or improve on time delivery. All of these can be improved by improving correct addressing. So while not the core of Refund Retriever, it is an idea to consider. So here are the different ways Refund Retriever will look at your invoices:
- LATE DELIVERIES (GSR)
- BOGUS ADDRESS CORRECTIONS
- RESIDENTIAL vs. COMMERCIAL SURCHARGE MISTAKES
- INCORRECTLY WEIGHED PACKAGES
- UN-SHIPPED/UNINVOICED PACKAGES
- DUPLICATE INVOICES or CHARGES.
But there is also the question of auditing your bills in the 1st place. Most services do it on a split of the refund, so the cost to your business to keep UPS and FedEx ‘honest’ is not a cost to you but a savings. Typically the auditors will use your account information to review your information online to perform the audit. Refund Retrievers is different from other auditors in that they are more focused on the low hanging fruit of just these two vendors. As a result they are better able to work with smaller ecommerce concerns. There is no minimum, since their model uses a simple account set up. Other auditors have a lot more effort in getting set up for each company that affects overall price. I have not had a chance to use them yet, but will be curious to see how they actually perform. Additionally, they have helped me in understanding what I should be doing on my shipping auditing by who ever I use internally or externally to manage my customers satisfaction.
Another perspective to look at for every business, is how would a service affect the customer. In this case, I would suggest that for every error caught, to pass on the savings directly to the customer. Lets face it, you really did not loose anything, your customer did. I would send a gift and or a refund to every customer that did not end up with the excellent service you intended when you shipped your product. Even if the customer did not complain. It is a way to show your customer that you care about them, not their money and orders. When you care about your customers, they will be far more likely to care about you.
So what do you think, is there value in auditing your vendors to keep them on the straight and narrow?