Direct-Recovery was founded in 2000 to target a market of shippers underserved by third party logistics firms. We developed a scalable platform to deliver enterprise level parcel audit services to large, decentralized shippers. We then packaged the same technology in a solution to serve smaller companies. “Smaller” back then meant companies with less than $500,000 per year in total FedEx or UPS spend.
Direct Recovery Parcel Audit helps larger FedEx, FedEx Audit, FedEx Rate Negotiations, FedEx Refunds, UPS Audit, parcel audit, UPS Rate Negotiations and UPS shippers trim transportation budgets with full transparency of every shipping dollar.
Today we serve a breadth of customers from small catalogs to Fortune 1000 corporations. We focus on reducing shipping costs through our parcel audit, contract optimization, reporting, insurance, and parcel claims management. For larger customers we offer a full service multi-mode transportation spend management solution together with best-of-breed industry partners. For smaller customers we offer the best and most cost effective parcel auditing solution on the market. For all customers we offer simplicity, efficiency and savings.
Since 2000, eroding margins have driven the parcel audit industry to offer cost reduction services at a per-transaction fee or monthly subscription basis. While we make these billing options available, we have also boosted efficiencies and reduced costs to guarantee a net value to our customers. We continue to operate primarily on a gain-share model with satisfaction based contract terms for maximum customer retention. With free setup, and contingency billing, our benefits directly improve the bottom line. It’s what KPMG calls a no-brainer, no-risk value proposition.
Parcel Service and Invoice Audit
Our most common parcel logistic solution is the FedEx or UPS audit, in which we monitor the service performance and billing accuracy. We also work with TNT, DHL, and USPS — most any parcel or LTL carrier. Rule of thumb — if the service guide offers a performance guarantee, Direct Recovery audits, regardless of the shipper’s billing domicile.
Refunds secured by the parcel audit, both service and invoice, are credited directly to the customer’s carrier invoice.
UPS and FedEx Service Audit
Identifies late shipments with no valid carrier exception (holiday, weather, mechanical, address, etc) and secures the guaranteed service refunds (GSR’s) for applicable shipping costs. Identifies “No Proof of Shipment” and “No Proof of Delivery” airbills and secures refunds for shipping costs. Our service audit reviews delivery performance for the previous 15 days, the standard window for the money back guarantee period.
UPS and FedEx Invoice Audit
Screens for invoice/air bill duplication, rate compliance, invalid accessorial charges for residential delivery, address correction, fuel surcharge, Saturday delivery/pickup and other charges billed in error. Refunds are credited to the customer’s bill. Unlike the service guarantee, most carriers honor claims for billing errors for at least six months. We’ll load the history into our system to find errors, but also to keep a full shipping history for the reporting module.
Benefit – Cost
1% – 9% recovery.
Simple, offsite solution to assure shippers pay only for valid carrier charges.
Offered mostly as gain-share with standard contingency rate of 50% of recoveries. Tiered rate may be offered if volume warrants. Per-transaction or subscription pricing is also available if preferred.
Rate Compliance – Aesculap: World’s largest manufacturer of surgical instrumentation. Implemented UPS audit in 2002. In 2009, a $36,000 UPS rating error was identified shortly after new service contract was implemented.
FedEx Audit – Great West Life & Annuity Insurance Company, a $3 Billion revenue insurance company recovered over 5% total FedEx spend from 2002 through 2005.
FedEx Audit – New Braunfels Smokehouse, a family owned fine meats and mail order Catalog Company, recovered 4.5% on FedEx parcel audit from 2002 through 2010.
UPS Audit – Tractor & Equipment Company, a heavy equipment sales and service center in the Southeast with 21 locations, recovered 4% of UPS spend from 2003 through 2010.
FedEx Audit – Volvo Truck North America recovered 12% of FedEx billings for first six months of parcel audit implemented in 2000. This was an unexpectedly high anomaly, especially since Direct-Recovery replaced a freight payment company which claimed to have been performing a parcel audit of FedEx traffic.
UPA Audit – Franmara, a supplier to the wine industry, recovered 9% average for the first six months of 2011