The Five Top Parcel Shipping Challenges – and How NMB Gateway for D365 Solves Them

Parcel shipping is more challenging than ever as businesses face rising e-commerce demand, stricter delivery expectations, and unpredictable shipping costs. Companies must navigate a host of issues, from carrier capacity limits and unexpected surcharges to failed deliveries and visibility problems, all while managing expenses effectively.

The 2024 holiday season saw many enterprise-class carriers (like UPS and FedEx) increase volume restrictions on retailers, forcing businesses to find alternative shipping methods or risk delays. Meanwhile, FedEx raised fuel surcharges twice in 2024, and UPS expanded its surcharge policies, leading to poor demand forecast planning because of unprecedented freight charge increases. (FedEx, 2024; Supply Chain Dive, 2023). Add in global supply chain disruptions, including port congestion and labour strikes, and it’s clear to see that more businesses are calling for smarter, more flexible software solutions to bolster their parcel and LTL shipping operation.

Supply chain operations and retailers alike are constantly pushing their parcel shipping efficiency as a means for maximizing growth opportunities and pressing their competitive advantage. Let’s examine the five key challenges in parcel shipping and showcase how D365 solutions, like NMB Gateway for Parcel, can solve them.

1. Carrier Capacity Limits and Shipping Delays

Problem: Carrier capacity constraints have become a recurring issue, especially during peak seasons and global disruptions. Relying on a single carrier increases the risk of shipping delays and added costs.

Solution: Adopting a multi-carrier strategy allows businesses to switch providers based on availability and rate. NMB Gateway for Parcel seamlessly integrates with multiple carriers, offering competitive rate shopping and freight charge management tools - ensuring that shipments keep moving, even during high-demand periods.

2. Unpredictable Shipping Costs and Surcharges

Problem: Fluctuating shipping costs—driven by hidden fees, fuel surcharges, and dimensional weight pricing—can erode profit margins. Many businesses lack the visibility to make cost-effective decisions and proactively address unexpected charges.

Solution: Automated rate shopping and cost analysis KPIs help businesses compare carrier efficiency and costs in real-time. NMB Gateway for Parcel integrates these capabilities directly within Microsoft D365, providing transparency into shipping costs and helping businesses select the most cost-efficient Parcel and LTL shipping options.

3. Lack of Shipment Visibility

Problem: Without real-time shipment tracking, shippers are struggling to manage customer inquiries, prevent lost shipments, and proactively handle delays. Customers now expect complete visibility into their orders; companies that fail to provide it risk damaging their reputation and falling behind in the competitive race.

Solution: A centralized tracking system improves shipment control, enhances corporate decision-making, and delivers increased customer satisfaction. NMB Gateway for Parcel’s Track and Trace functionality offers end-to-end visibility, ensuring businesses and their customers have access to real-time shipment statuses and estimated delivery times.

4. Inefficient Packing Processes

Problem: Manual packing and labelling processes slow down time-sensitive fulfillment operations, while shipping documentation errors can lead to incorrect shipments and unnecessary returns - preventable inefficiencies which drive up costs and reduce profit margins.

Solution: Automated packing workflows and carrier-compliant label printing streamline fulfillment operations. By integrating directly with Microsoft D365, NMB Gateway for Parcel improves packing efficiency, reduces manual errors, and accelerates fulfillment processing by automating order entry processes - generating carrier compliant shipping labels with the click of a button.

5. Poorly Managed Reverse Logistics

Problem: With e-commerce returns becoming more frequent, businesses need an efficient way to handle them. Without a streamlined returns management system, companies face lost revenue, increased operational costs, and dissatisfied customers. Manual processing slows down return approvals, delays refunds, and increases labour costs.

Solution: Automating return label generation, tracking return shipments, and updating inventory in real-time can reduce return shipping complexities. NMB Gateway for Parcel simplifies returns processing by integrating RMA shipping within the Packing Workbench, which connects directly to order inventory systems in D365. This automation minimizes manual effort, accelerates return processing, and ensures inventory updates happen seamlessly, helping businesses cut costs while maintaining a smooth customer experience.

The Path to Smarter Parcel and LTL Shipping

As the parcel and LTL shipping landscape continues to evolve, businesses must be proactive in overcoming challenges. Staying ahead means conducting a thorough audit of current D365 systems and workflows - determining where and how a specialized shipping solution can help drive businesses forward.

From adopting multi-carrier shipping strategies to implementing real-time tracking and automated packing workflows, shippers can optimize their operations and enhance customer satisfaction; upgrading their native D365 systems with specialized ISV shipping software designed to help them ship smarter, faster. NMB Gateway for Parcel empowers businesses with the tools needed to navigate today’s complex shipping environment, ensuring efficiency, cost savings, and a superior shipping experience.

NMB Gateway for Parcel at a Glance:

• Multi-carrier integration: Easily switch between Parcel and LTL carriers to avoid delays and optimize your costs.

• Automated rate shopping: Make quick, cost-effective decisions by comparing shipping rates in real-time.

• End-to-end shipment visibility: Consolidate all your parcel shipping data onto one, robust Packing Workbench.

• Streamlined packing processes: Improve efficiency with automated packing workflows and carrier-compliant labels.

• Simplified returns management: Automate return label creation and tracking to reduce operational burdens.

• Seamless Microsoft D365 integration: Enhance your ERP system with powerful shipping functionalities that extend far beyond native D365 capabilities.

Contact our team of specialists and schedule a demo: nmbsolutions.ca/contact-us

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Sources

Supply Chain Dive. “How Peak Shipping Seasons Impact Carrier Capacity.” Supply Chain Dive, 2023, www.supplychaindive.com.

FedEx. “Understanding Surcharges and How They Affect Shipping Costs.” FedEx Resources, 2024, www.fedex.com.

Journal of Commerce. “The Rise of Multi-Carrier Shipping Strategies in E-Commerce.” Journal of Commerce, 2023, www.joc.com.

DHL. “How Address Validation and Tracking Improve Delivery Success.” DHL Logistics Insights, 2024, www.dhl.com.

Gartner. “The Future of Supply Chain Visibility and Real-Time Tracking.” Gartner Reports, 2023, www.gartner.com.