GUEST COMMENT Carrier management unleashed

Companies should be enabled not restricted by their carrier management software, writes Rory O’Conner, founder and CEO of Scurri.

While we have come a long way from the times when third parties set the terms of service in the shipping and delivery market, companies still have some way to go to offer their customers the service they demand.

Most companies use third-party carrier management software. And as our research shows, there has been a continued rise in adoption. Scurri surveyed 200 retailers with an even split between those earning £20m-£100m (both omnichannel with more than 50% of revenue online as well as pureplayers) and those earning 1£00m-£1bn. In Q2, 82% and 87% use a CMS respectively, which is up from 74% and 78% respectively in Q1 of 2024.

The research also shows companies will switch to get a better solution. Three quarters said they would switch CMS in the next six months, so there is clearly enthusiasm to move driven by the need to find a better solution, be it on functionality, vendor service or price.

This prompts the question – why do they move? A leading motivator is carrier switching, which is one of the greatest obstacles to delivering on their promise to customers. Companies want to do it, but with some of the software out there it is not easy, in fact, it may be actively discouraged by the vendors because it shines a light on the limitations of their tools. They may even claim that the ability to switch easily and quickly is not a priority – but it is.

In considering the importance of customer service, proof comes from research conducted by Scurri of 1,000 UK consumers which reveals shipping costs feature in the top three biggest considerations impacting purchasing decisions, coming in at number two for online direct to consumer (DTC) and online marketplaces, and number three for social media purchases.

Consumers also want choice and the split is fairly even; 35% want next day delivery options; 28% want grouped deliveries rather than multiple individual deliveries; 23% want sustainable delivery options and same day delivery options; and 22% want to understand where their product is being shipped from so they can understand the distance the product will need to travel to reach them.

This illustrates that a single online order now involves a more complex array of preferences, making it crucial for retailers and brands to have the flexibility to choose and switch carriers to meet these needs and wants. This flexibility allows them to enhance their delivery options, such as offering next-day delivery, and provide more choices at checkout.

From a retailer and brand perspective, research indicates that businesses seek good value from their software investments, especially given the sharp rise in these costs over the past five years. Two-thirds of companies prioritise return on investment (ROI) from their software providers, while over half want access to and greater control over performance data from which they can generate insights to improve performance.

Advanced Carrier Management System (CMS) software must facilitate easy carrier switching to maintain high service levels and manage carrier rates by optimising carrier selection for the best deals. It should also provide retailers and brands with ongoing improvement capabilities to meet customer demands and control costs. An intuitive rules engine can simplify delivery management.

Additionally, the software should simplify carrier integration for retailers planning international expansion, offering quick and flexible connections to a network of local and global carriers through a single, stable integration. A unified platform for managing carrier labels is also essential, as inaccurate or incomplete shipping label addresses lead to 41% of deliveries being delayed and 39% failing entirely.

Finally, the CMS must account for frequent updates to carrier specifications, APIs, and services. Retailers should be able to connect to an existing API that allows for quick and effortless maintenance of all carrier integrations, avoiding the substantial work and expense of staying current independently.

In conclusion, the evolution of carrier management software is pivotal for retailers and brands striving to meet the complex demands of modern consumers. Flexibility in carrier choice and the ability to switch seamlessly are essential for providing optimal delivery options and maintaining high service standards. As businesses continue to seek better value and insights from their software investments, advanced CMS solutions must prioritise ease of integration, continuous improvement, and comprehensive data access. By adopting such innovative systems, retailers can enhance their delivery propositions, control costs, and ultimately, deliver the superior service that today’s consumers expect.

Rory O’Conner, founder and CEO of Scurri

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