Processing packages on behalf of your clients provides some very generous profit margins, but it can be time-consuming if you don’t have the appropriate technology and hardware in place.
The first step to increasing your package processing efficiency is by introducing Optical Character Recognition (OCR) into your hardware mix. OCR technology can increase your processing speed by as much as 175% when compared to manually typing address information. Some things to keep in mind when evaluating an OCR system are the following:
- Accuracy
- Extra Fees
- Updates
Accuracy: OCR technology works for both typed and handwritten addresses. If your OCR is producing inaccurate information, then it is only going to cause more harm than good in your package processing operation. Shoot for finding a system with a minimum of 95% accuracy for typed addresses and 85% accuracy for handwritten addresses.
Extra Fees: Many OCR systems require you to purchase “clicks” upfront. Essentially, you will buy a set number of clicks and then every time you take a picture of an address there will be a deduction from the bundle of clicks purchased. These extra fees can quickly add up, so it is best to find an OCR system without any additional fees or charges.
Updates: OCR accuracy is constantly improving based on data insights which is why it is important to always have the most up-to-date system. Look for an OCR system that is cloud-based so you receive updates instantly in the background rather than waiting for your technology provider to send you a thumb drive with the newest update.
The next step to increasing your package processing speed is by integrating a dimensional scale to capture both the weights and dimensions of a package instantaneously. A dimensional scale will allow you to capture package measurements in less than two seconds as opposed to the 6-8 seconds it takes to manually measure packages. Including dimensional data is important as it may qualify you for cubic rates which will decrease your postage cost and increase your profit margin.
Do you want to make your package processing operation even faster? Take a note out of the UPS/FedEx playbook!
How many packages are being picked up by UPS or FedEx without shipping labels? The answer is zero. UPS and FedEx shippers are required to affix a shipping label to a package rather than handwriting the address and relying on UPS/FedEx to generate a label back at their processing facility.
To take your processing speeds to the next level, partner with a technology provider that offers a solution to your clients allowing them to generate and print their own shipping labels. You will quickly find that majority of your clients prefer this option for the following reasons:
- This process is faster. It is faster for your clients to create a shipping label compared to them handwriting their addresses.
- Your clients can verify their addresses. This eliminates the headache of packages being returned to your clients, which ultimately saves them time and money
- It increases accountability and quality control. This is especially important for organizations like hospitals and financial institutions that send out sensitive information.
In summary, OCR technology and a dimensional scale will drastically increase your overall package processing speeds allowing you to increase your volume capacity. If you want to increase those processing speeds even more then we suggest giving your clients the option to create their own shipping labels.
