Skip to main content

Technology

The Smart Buyer’s Guide: 23 Critical Questions for Shipping Software Evaluations

Published Date
Author Evan Knauss, Marketing Assistant

Man in suit, holding light bulb with an abstract background

Unlock the essential questions to ask when choosing a shipping software provider

Choosing a shipping software provider is like selecting the engine for a high-performance car. You wouldn’t install an underpowered engine to win a race and the same goes for your shipping operations. The right software powers your business to meet delivery timelines, reduce costs, and navigate the complexities of modern shipping. So, when experts predict the annual U.S. parcel volume to hit 30 billion by 2030, the importance of partnering with a strong shipping software provider that can keep pace is critical.

Historically, shipping solutions had limited capabilities, requiring daily manual tasks. Modern platforms offer advanced functionalities that automate workflows and help control costs like rate shopping, custom business rules, real-time tracking, and international documentation. Yet, there are still shippers who have not adopted these advanced solutions.

Today, your operations are reflected by how well you simultaneously manage high order volumes, various carriers, and delivery expectations. Even minor inefficiencies can have a significant impact on delays, increased costs, and how customers perceive your brand. However, the solution to avoiding these issues is straightforward: Ask the right questions before committing to a shipping software provider.

From shipping capabilities to information technology and scalability, businesses in the market for a new shipping solution should be seeking information to ensure the software aligns with both current needs and future growth. In this blog, we lay out the essential questions to ask when evaluating a new shipping software provider, broken down by category.  

Features and Functional Must-Haves

Throughout the evaluation process, it is crucial to focus on the key features, product requirements, and vendor support that will make the biggest impact on your business. Choosing the right vendor is also about selecting the capabilities that will prioritize your customers and keep them satisfied.  

To help you navigate this process, we’ve outlined 23 key questions, as well as what to ask yourself and vendor prospects, as you compare the various shipping software options on the market.

Shipping Considerations

1. What throughput is required across your operations?

Ask yourself:

  • How many packages do you need to process per hour and per day across all locations? (Be sure to include all types of shipments – documents, packages, store orders, warehouse shipments, and drop shipments.)

Ask the vendor:

  • Can the solution manage multiple shipment types efficiently?

2. Can shipping methods be optimized for cost and efficiency?

Ask yourself:

  • How can “best-way” shipping options, which automatically selects the most cost-effective and efficient shipping method, benefit your customers while reducing costs by optimizing rates, service levels, and delivery times?

Ask the vendor:

  • Does your software support “best-way” or automated carrier selection based on pre-defined criteria?

3. Where do real-time business rules fit in?

Ask yourself:

  • Which real-time business rules should you implement for shipping and manifesting?

Ask the vendor:

  • Does your solution allow real-time application of custom business rules for shipping and manifesting?

4. Carrier compliance is crucial. How is it prioritized?

Ask yourself:

  • How do you currently handle dangerous goods or hazmat shipping?
  • How many “carrier compliant” carriers do you need supported?
  • How is the MCSS viewed by the carriers?

Ask the vendor:

  • Does your solution support multiple carriers and are they compliant?
  • What carrier accolades has the solution received (UPS Premier, FedEx SOTY, Diamond, etc.?)
  • Does it provide immediate support for rate changes, updates, and the creation of all labels including hazmat, manifests, and international?
  • What is your update process when carriers make changes to their compliant labels?
  • How are limited quantity items like lithium-ion batteries, cleaners, lubricants, and beauty products handled?
    • Does this include goods or quantities that require IATA or 49 CFR compliance?

5. How are addresses validated to minimize errors and extra fees?

Ask yourself:

  • How does your business need support in executing address validation?

Ask the vendor:

  • Does your software include address validation to eliminate additional carrier charges from undeliverable addresses or misclassified deliveries?
    • If not, how will your software support this need?

6. How fast can shipments be processed?

Ask yourself:

  • Do you use automation that requires high-speed processing such as printer applicators, auto bagging machines, PandAs (print & apply), or high-volume batch shipping?

Ask the vendor:

  • How quickly does your solution rate shop and generate labels?
  • Can it support high-speed automation equipment if needed?

7. Can processes be streamlined or eliminated?

Ask yourself:

  • What parts of your current shipping and manifesting processes can be eliminated or automated to improve efficiency?

Ask the vendor:

  • Is your software capable of automating shipping and manifesting processes to reduce manual tasks and increase throughput?

8. How are multi-carton orders supported?

Ask yourself:

  • Do you handle multi-carton orders that use different carriers and service levels?

Ask the vendor:

  • Can your solution handle multi-carton or multi-service shipments within a single order?

International Shipping

9. Does your business need international shipping capabilities?

Ask yourself:

  • What kinds of customs documentation and compliance requirements will you need to meet?

Ask the vendor:

  • Does your software generate customs-related documents including certificate of origin, commercial invoices, and shipper export declaration?
  • Is it certified for ACE (AES) Direct Filings?

10. Do you need to support both inbound and outbound international shipping?

Ask yourself:

  • What carriers and services do you need to support inbound and outbound international shipping?

Ask the vendor:

  • Can your solution support international carriers?
  • Does it support clearance such as WorldEase, IPD, BBX, etc.?

Scalability

11. Can your shipping operations scale as your business grows?

Ask yourself:

  • What capabilities will you need to scale effectively?
  • What additional functionality would support your company’s growth and evolution?

Ask the vendor:

  • Can your solution handle additional businesses cases?
  • Can your software scale from a single workstation to an enterprise-wide solution?
  • Can your solution expand from a single location to multiple locations?
  • Can it support ship-from-store (SFS) in addition to distribution centers (DC)?

12. Can shipping processes be centralized and automated?

Ask yourself:

  • How would centralizing or automating shipping improve efficiency and reduce errors?

Ask the vendor:

  • Does your software support centralized shipping and end-of-day manifesting?
  • Can the manifesting process be automated to eliminate human error? 

Areas Impacting Shipping

13. What level of tracking do you need?

Ask yourself:

  • Do you only need basic shipment tracking or software that supports a more robust post-purchase experience?

Ask the vendor:

  • What tracking capabilities does your solution integrate with or provide?
  • Can it support advanced post-purchase functions like notifications, delivery updates, or customer self-service tracking?

14. Can the solution provide indirect benefits to other areas of the business?

Ask yourself:

  • Which areas could benefit from improved shipping data or workflows?

Ask the vendor:

  • Can your solution support other areas of the business such as streamlining order entry, customer service visibility, self-service tracking, and data to support carrier negotiations?

Information Technology

15. How intuitive is the user interface?

Ask yourself:

  • Which roles in your organization will need to use the interface?
  • How important is the ease of use for daily operations and training new staff?

Ask the vendor:

  • How user-friendly is your interface?
  • What does your interface training process look like?

16. What integration requirements exist?

Ask yourself:

  • What are the integration requirements to your Order Management Solution (OMS), ERP and Warehouse Management Systems (WMS)?
  • Are you looking to change your ERP, WMS, or OMS in the future?
  • Where do you want to host your MCSS – Cloud, On-Premise or Hybrid?

Ask the vendor:

  • Does the solution provide flexibility with integrating to existing systems?

17. What technology and automation support is needed?

Ask yourself:

  • What technology do you need to support bar code reading, weighing scales, and automation?
  • Is automation equipment part of your fulfillment strategy?

Ask the vendor:

  • Does the system support automated processing?

Vendor Support

18. What does the vendor partnership look like?

Ask yourself:

  • Who in your organization will be responsible for managing the day-to-day relationship with the vendor?
  • What resources will you use to facilitate communication?
  • How experienced is the provider with implementations?

Ask the vendor:

  • How much of the implementation process is handled by the vendor, and what will your team be responsible for?

19. How are software updates handled?

Ask yourself:

  • How important are automatic updates vs. paid upgrades to your operations?

Ask the vendor:

  • Does your software update automatically as new system releases and features are released?
  • Are system upgrades included or are they an additional cost?

20. What is the vendor’s support process?

Ask yourself:

  • What level of support does your team require?

Ask the vendor:

  • What does your support process look like as a whole?
  • Do you offer 24/7, US-based support?
  • Are support SLA’s part of your standard contract?

Data Analysis and Reporting

21. What reporting and analytics capabilities are available?

Ask yourself:

  • Which reports and data metrics are crucial to monitoring your operations and conducting audits?

Ask the vendor:

  • What reporting capabilities and data features does your solution provide?
  • What tech solutions do you partner with to support data analysis?

22. How are key metrics organized?

Ask yourself:

  • How do you currently track shipping KPIs?
  • Which metrics are most important for monitoring performance?

Ask the vendor:

  • Does your platform provide a customizable dashboard of key shipping metrics?
  • Do you provide internal and/or external tools to assist in measuring shipping KPIs?

23. Do you have a data strategy?

Ask yourself:

  • How can a data warehouse or centralized reporting system improve your operations?

Ask the vendor:

  • Does your software utilize a data warehouse or support centralized data management?

The Next Step: Turning Insights into Action

In the process of finding the best-fit shipping software vendor for your business, asking the right questions is only the first step. After you’ve assessed your internal requirements and gathered the information you need from the vendor, the next step is putting those insights into motion. Here’s what we suggest you do as you move forward:

  1. Set your priorities: Decide which features are must-have and which are nice-to-have.
  2. Build a Request for Proposal (RFP): Turn your priorities into a detailed, formal document, ensuring vendors provide responses in a consistent format for comparison.
  3. Evaluate vendors: Use RFP responses as a framework to evaluate each potential solution.
  4. Track and optimize: After implementation, leverage reporting and analytics to monitor the software performance, refine processes, and maximize your investment.

Evaluating shipping software can be a complex process, but asking the right questions and building a structured RFP will help you cut through the noise and choose a solution that aligns with your current needs and future business goals.

Looking to upgrade your shipping solution? You don’t have to do it alone – our shipping experts are here to help businesses of all sizes find their best fit. Contact our team today to start a conversation or schedule a pressure-free discovery call to see why today’s top brands trust ProShip to power their parcel operations.