The Ultimate Guide to Parcel Management Software for Efficient Logistics

Overview

Being fast, accurate, and efficient is crucial in the current world of logistics. The key to achieving these goals is robust parcel management. Parcel management software provides the infrastructure to precisely track, sort, and route parcel delivery and other courier services, ensuring a seamless end-to-end process for businesses and their customers.

Parcel management involves overseeing all activities related to the processing of parcels — from dispatch to delivery. It plays a crucial role in facilitating the movement of goods efficiently, especially in an era where e-commerce is booming, and consumer expectations for speed and reliability continue to rise. 

This article discusses top parcel management softwares, highlighting how they streamline the process to ensure timely and hassle-free package delivery. 

What is Parcel Management Software?

“Parcel management” means all the activities involved in processing parcels, from being prepared for dispatch to reaching the intended end-users. A parcel management system, commonly known as parcel processing software, was developed to streamline the handling of courier services at the time of delivery. To ensure that the shipments get through the proper channels and in the right manner, it supports or triggers processes such as tracking, sorting, routing, and scheduled deliveries.

This software often integrates with other systems, such as e-commerce platforms, inventory management software, and delivery management systems, to provide a comprehensive solution. With real-time tracking, automated sorting, and data analytics, businesses can get automated notifications of their delivery operations, making it easier to address any delivery challenges or exceptions that may arise.

Key Features of Parcel Management System

The right parcel management software can transform a business’s logistics operations. The most effective systems include several key features that enhance efficiency and customer satisfaction.

1. Real-Time Tracking

Real-time tracking allows businesses and customers to monitor the status and location of packages throughout the delivery process. This transparency improves the customer experience by providing up-to-date delivery status and helping businesses to quickly address any delivery exceptions or delayed deliveries.

2. Automated Sorting and Routing

Automated sorting and routing are essential features in parcel management software. By using advanced algorithms, the system can determine the most efficient and cost-effective delivery routes, saving both time and fuel. This ensures that parcels reach their destinations more quickly while reducing operational costs related to courier services.

3. Transportation Labeling and Documentation

Generating accurate shipping labels and handling the necessary documentation can be time-consuming. Parcel management software eliminates these manual tasks by automatically creating shipping labels and necessary documents, reducing the chance of errors and delays. This can also go a long way in terms of route planning, route optimization, and driver management.

4. Integrated Carrier Management

The best parcel management software integrates with multiple carriers, allowing businesses to choose the most suitable courier companies for each delivery. Whether looking for the best courier software solutions, the most affordable shipping options, or the fastest delivery times, carrier management helps businesses optimize their delivery choices.

5. Analytics and Reporting

Parcel management software offers comprehensive reporting and analytics tools. These systems provide businesses with valuable insights into delivery performance, including metrics such as delivery times, shipping costs, and customer satisfaction. This data can be used to identify inefficiencies in delivery operations and optimize strategies to improve delivery performance further.

How Parcel Management Software Improves Operational Efficiency

Parcel management software improves operational efficiency in several key ways:

1. Automation of Tasks

Many logistical tasks, such as sorting, labeling, and updating delivery information from courier companies, can be automated with parcel management software. You can even get access to courier software options like advanced route optimization which ensure timely deliveries. This reduces the need for manual labor, speeds up processes, and eliminates human errors.

2. Faster Processing

Automated systems use the most efficient delivery routes to ensure that parcels are processed more quickly. Faster processing helps businesses meet customer demands for timely deliveries, particularly in industries with tight delivery windows or when handling time-sensitive parcels.

3. Cost Savings

By streamlining the parcel handling process, businesses can save on operational costs. Automated sorting and efficient routes reduce the need for manual interventions, while real-time tracking minimizes the risks associated with lost or delayed packages. Additionally, the software can help businesses negotiate better rates with delivery companies, reducing shipping costs.

4. Reduced Errors

Manual errors are a significant source of delays and customer dissatisfaction in logistics. With parcel management software, businesses can significantly reduce these errors. The automated labeling system ensures that shipping labels are correctly applied, and the integration with inventory systems ensures accurate stock levels are maintained.

5. Better Visibility

One of the most significant advantages of parcel management software is its visibility. Businesses can track the status of every parcel in real-time, which helps them proactively address any issues before they escalate into delivery problems. This information is made visible via automated customer communication.

6. Scalability

As businesses grow, so do their logistics needs. Parcel management software is designed to scale alongside the business. It can handle a higher volume of parcels without sacrificing performance or customer service, making it a future-proof investment for growing businesses.

Benefits of Implementing a Parcel Management System

Parcel management software offers a comprehensive solution to streamline logistics operations, reduce costs, and enhance customer satisfaction.

1. Simplifying Product Delivery with Reduced Errors

One of the primary benefits of parcel management software is its ability to streamline the delivery process and minimize errors. The software eliminates human error by automating tasks such as labeling and tracking, ensuring that products reach the right destination at the right time.

2. Enhancing Customer Satisfaction 

Real-time tracking is a key feature of parcel management software that significantly enhances customer satisfaction. Businesses can build trust and loyalty by providing customers with up-to-date information about their shipment's location and status.

3. Saving Time with Optimized Delivery Routes

Parcel management software employs advanced algorithms to optimize delivery routes, reducing travel time and fuel consumption. This not only saves time but also lowers operational costs.

4. Improving Inventory Efficiency and Reducing Storage Costs

Parcel management software helps businesses maintain optimal stock levels by providing accurate and real-time inventory data. This reduces the risk of stockouts and overstocking, minimizing storage costs and ensuring timely fulfillment of orders.

5. Cutting Overall Logistics Expenses

Parcel management software offers a range of cost-saving benefits, including:

• Reduced Labor Costs: Automation of tasks reduces the need for manual labor.

• Lower Fuel Costs: Optimized delivery routes minimize fuel consumption.

• Improved Carrier Rate Negotiation: Access to real-time carrier rates enables businesses to negotiate better deals.

• Reduced Errors and Rework: Minimizes costly mistakes and rework.

By implementing a robust parcel management system, businesses can significantly improve their logistics operations, enhance customer satisfaction, and reduce overall costs.

Exploring Multicarrier Parcel Management Solutions

A multicarrier parcel management solution is a package used as a single platform to influence relationships between parcel shippers or carriers. These solutions empower corporations to find the best rate, select the most suitable carrier to handle each shipment and track each shipment from every carrier on the platform. 

1. ClickPost

ClickPost provides a parcel tracking solution to all the shipping problems of sending parcels through different carriers. It involves shipment monitoring, shipment rate estimators, delivery reliability metrics, and the automation of logistics operations, making it easier for organizations to manage their supply chain.

ClickPost has already earned the trust of over 400+ brands globally, including industry leaders such as Walmart, Decathlon, Aditya Birla Group, Meesho, Nykaa, Arvind, and Puma. Our platform provides a reliable and scalable solution for companies looking to improve their logistics operations and customer satisfaction.

By using ClickPost, companies have achieved impressive results:

• 54% reduction in Return-to-Origin (RTO) for Damensch

• 56% drop in WISMO (Where-Is-My-Order) queries for Snitch

• 33% of returns converted into exchanges for a leading German footwear brand

• 28% improvement in NPS score for a major client

2. Shippo

Shippo is one of the easiest shipping platforms to use, and it has an array of carriers from which you can get discounted shipping rates on the proof of delivery. It helps to dispense with shipping by offering instruments for generating labels, tracking deliveries, and managing shipping operations. Like many competitors, Shippo is tailored primarily for small and medium companies.

3. ShipStation

ShipStation is a shipping software with multiple features to help businesses with shipping functions. The service connects with different carriers, stores, e-commerce, and marketplaces, providing features for order management, shipment label creation, and tracking. Today, this ShipStation is perfect for businesses that want to grow their shipping process to the next level.

4. aftership

aftership focuses on shipment tracking features and helps companies track their packages via more than 700 couriers worldwide. This allows a user-friendly dashboard to monitor, control, and share information concerning shipping status with customers, enhancing the post-purchase experience and decreasing customer queries.

5. Bringg

Bringg is a delivery and logistics software meant to help dispatch and manage the delivery process. It can assist companies in optimizing their last-mile delivery logistics choices, engage customers, and give the latter as well as delivery personnel real-time tracking of deliveries. It is implemented primarily on retailers and third-party logistics service providers.

6. LogiNext

LogiNext provides a SaaS solution in the logistics and field service industry, which helps optimize the delivery routes, monitor the shipment in real-time, and offer performance metrics reports. It mainly targets companies that manage their fleets, deliver goods in urban environments, or work on logistics performance.

7. Metapack

Metapack can be described as a delivery management software that helps retailers select from diverse carriers. Using ShipStation, clients increase the efficiency of delivery. Experiences by partnering with many carriers, having the option of on demand delivery services, and gaining knowledge about shipping advice and their transport performance rates.

8. Narvar

Similarly to, but more integrated with, the last-moment post-purchase contributions, Narvar aims to enhance the post-purchase experience by providing solutions for package tracking, returns, and customer treatment. It gives customers a branded view of the order status while allowing businesses more efficient ways to handle returns.

9. Onfleet

Onfleet is a last-mile delivery management solution designed to ensure that businesses' deliveries happen in the most efficient manner possible. It offers applications such as route planning, delivery tracking, delivery analysis, and alerting customers, making business delivery faster and satisfying the customer.

10. Shipsy

Shipsy is a logistics software that allows a company or a business organization to manage the whole supply chain process. It provides operational exposure, vehicle and route mapping, and sophisticated analysis for control over overall performances. Shipsy is implemented in enterprises to better manage their movement and final mile logistics.

How to Choose the Best Multi-Carrier Parcel Management Software Solution for Your Online eCommerce Store

Generally, any multi-carrier order delivery software that provides excellent overall assistance to businesses is a good option. Still, there are a few requisites of good multi-carrier shipping software that an online store should find out.

1. Extensive Serviceability

Greater reach and serviceability are among the biggest perks and features of tying up multi-carrier parcel delivery software. Therefore, the greater the number of carriers supported by a logistics provider, the better.

Check the number of carriers supported by a shipping company and see if the regions serviced by those carriers work for your business. Also, talk to your courier provider to find out how to integrate new carriers for your business.

2. Reduced Shipping Costs

A logistics partner can significantly lower the operational costs for an ecommerce company. Along with bulk-shipping options that usually come at huge discounts, they also offer loyalty programs and other opportunities for cost reduction.

These software companies have economies of scale that help them make deliveries across borders at very low prices. An in-house shipping team of an online store can never manage to ship as effectively or offer the same advantages as these carrier companies.

3. Rate Shopping Options

A multi-carrier parcel management system offers incredible rate shopping options. With so many carriers to do your bidding, an online store can compare shipping rates between several carriers (often above 100 or so) and choose the one that best fits their budget and guarantees a cost-efficient solution. 

4. Better Customer Care Support

A multi-carrier parcel management software company has a robust customer service team to answer client and customer questions.

This is one of the most important factors influencing customer satisfaction and business success.

You will face customer dissatisfaction if they cannot contact you after a failed or delayed delivery. With a dedicated customer support team, ecommerce companies will always manage to keep their customers happy.

5. Order and Inventory Management

Ecommerce businesses often find themselves lacking insufficient storage or warehouse space. A multi-carrier order management software can come in handy when providing warehouse management for online stores overwhelmed with order volumes.

Such software can also help online shops restock inventory and manage product returns. Such fulfillment services can ease the burden of shipment management on online storefronts.

How Parcel Management Software Integrates with Other Systems

To streamline operations and enhance efficiency, parcel management systems integrate with various business tools, providing key benefits across different areas:

• Inventory Management Integration: Parcel management systems sync with inventory management tools to provide real-time stock updates. This ensures businesses avoid overstocking or stockouts, maintaining accurate inventory levels aligned with shipments.

• E-commerce Platform Integration: These systems easily integrate with e-commerce platforms like Shopify and Amazon, allowing businesses to manage orders and shipments directly from their online stores. With real-time tracking, businesses can update customers on their order status, improving transparency and reducing inquiries about delayed shipments.

ClickPost Multi-Carrier Shipping Integration

ClickPost’s advanced multi-carrier platform enhances parcel management, offering seamless integration to streamline shipping and order fulfilment:

1. Universal Shipping API for Carrier Integration: With ClickPost’s universal shipping API, businesses can connect to over 150 carriers, quickly integrating additional carriers as needed. This flexibility ensures continuous fulfilment without disruption.

2. Unified Dashboard for Order Management: The centralized dashboard in ClickPost allows businesses to view all orders across multiple carriers. This unified interface provides real-time tracking updates, delivery exception alerts, and return notifications, ensuring efficient monitoring and management of shipments.

3. AI-Powered Carrier Recommendations: The AI-enabled carrier recommendation engine helps businesses choose the best carrier based on specific criteria like low RTO (Return to Origin) rates, minimal stuck shipments, and high NDR (Non-Delivery Report) success, optimizing shipping decisions.

4. Effortless Order Creation and Shipping Labels: With a single-click order creation feature, businesses can quickly generate AWBs (Air Waybills) and shipping labels, streamlining the process and reducing time spent on manual tasks.

5. Returns & NDR Management: ClickPost offers eCommerce Returns Management and NDR (Non-Delivery Report) Management, simplifying the handling of returns and exceptions, improving operational efficiency, and enhancing the customer experience.

6. Enhanced Logistics & Customer Satisfaction: By automating logistics and setting clear shipping policies, businesses can reduce customer support inquiries, minimize delays, and improve fulfillment times—leading to higher customer satisfaction and business growth.

Choosing the Right Parcel Management Software for Your Business

When choosing a parcel management system, Consider these key points:

• Carrier Integration: Ensure the system offers multifaceted shipping carriers and is compatible with your shipping carriers. It makes it possible to compare rates, monitor package delivery, and control your deliveries.

• Ease of Use: Some requirements include the user interface being easy to understand and a few mouse-click operations, enabling users to perform activities such as labelling, tracking shipments, and generating reports with little prior training.

• Automation Features: Seek a system to automate routine work, including labelling, routing, and tracking information. This not only saves time but also minimizes human mistakes.

• Integration with Other Tools: The system should be compatible with your current programs, that is, e-commerce, inventory, or even your accountancy procedures, to ensure it runs efficiently.

• Real-Time Tracking: Any sound tracking system for businesses and customers should be implemented in real-time. It increases accountability and means for addressing delivery problems.

• Cost and Pricing Structure: Look at the pricing strategy and ensure you can afford it. Implementing the best systems with the core features necessary for a given organization without a presence in extensive and unique functions that are unnecessary for providing the best service.

• Customer Support: Customer service support must be a strong characteristic. Ensure the provider assists customers quickly to help them overcome technical or operational challenges.

• Data Security: It should be particularly secure if the customers’ information and the shipping of their items will be processed online via a cloud system.

Case Studies: Businesses Benefiting from Parcel Management Software

Here are real-world examples of how well-known companies benefit from using parcel management software:

1. Amazon

Amazon packaging is significantly developed and can process millions of packages daily. It is used to lead and manage warehouse activities, find the best way to deliver goods, and allow customers to track delivery. This is how Amazon can guarantee comparatively low prices for ordinary and express (same-day or next-day) deliveries.

2. FedEx

FedEx uses parcel management software to control its extensive transportation network worldwide. The system does assist in sorting the packages, keeping track of them, and forwarding them to the respective countries. The use of real-time and future-based tracking capabilities enables FedEx to guarantee timely deliveries and prevent delivery hitches a priori.

3. UPS

The technology that UPS relies on to manage parcels is parcel management technology. The counterpart features aim at the route's presentation so that drivers follow the shortest paths to the recipient's address. It also enhances the kind of information UPS gives customers about deliveries; hence, trust and improved satisfaction are achieved.

4. DHL

Using parcel handling applications, DHL enshrines parcel processing to cater to international shipments and cross borders. One of the methods involves the reduction of customs declaration formalities, tracking, and delivery time. This helps DHL keep its promise of fast and efficient international express delivery services.

5. Walmart

Walmart has adopted parcel management software for e-commerce and in-store pickup orders. It assists in organizing distribution from depots to stockists or even customer notifications. Through real-time tracking and integrating automatically generated processes, the firm guarantees timely delivery, thus improving the experience of its clients.

Conclusion

Parcel management software is the answer to this logistics sector's need because it provides the companies with the tools they require for managing parcels within an unforgiving and competitive environment. Besides fixing errors and enhancing clients’ satisfaction, these solutions result in time and monetary benefits because of valuable activities such as synchronization, preferable delivery route determination, and tracking.

Thus, demand for efficient and rapidly growing parcel management systems will grow alongside e-commerce and international trade. Organizations applying this technology with ClickPost will be better positioned to address customer needs, manage supply chains, and sustain competitiveness.