FedEx and UPS highlight parcel security, risk management tools 

UPS Secure Commerce combines UPS’s InsureShield shipping insurance; Parcel Pro, a platform for managing domestic and international shipments, creating shipping and returns labels, scheduling carrier pick ups, and using paperless invoicing that includes extra security features; and CommerceShield, a tool that provides fraud screening during online checkout, but also analyzes other in-transit risks to minimize delivery exceptions, chargebacks

UPS provides insurance through UPS Capital. Last year, it insured 62 million packages, paid out $132 million in claims and processed 97% of claims within five days, according to the company. 

Delayed packages can trigger support tickets, replacement costs, refund pressure, and disappointed customers who may turn to other vendors in the future. A lost package is more serious and can completely destroy customer trust, lower repeat-purchase rates and brand damage through poor word-of-mouth. Shipping insurance helps merchants deal with those situations by making the customer whole and preventing customer-service standoffs

Parcel Pro allows customers to delete sensitive words from shipping labels to reduce theft, validate shipping addresses to avoid mistakes, use powerful data models to help determine the likelihood of a successful delivery to a destination, and reroute packages to alternative delivery locations, like a UPS Store, for high-theft areas.

Merchants that used CommerceShield and UPS shipping insurance, for example, are able to win many more chargeback disputes with carriers, streamlining manual workflows for claims and making more informed decisions on when to issue refunds or send a replacement item, UPS says.

FedEx authenticated delivery

Meanwhile, FedEx (NYSE: FDX) launched a premium delivery option that uses a secure QR code authentication to help ensure packages are released only to an authorized recipient, providing an additional layer of protection for high-value and sensitive shipments.

FedEx Authenticated Delivery expands the FedEx proof-of-delivery portfolio with a digital verification process designed to help reduce the risk of fraud, theft and misdelivery. The service is particularly well-suited for shipments of luxury goods, electronics, healthcare, aerospace, collectibles and other high-value items where added security is important, the company said.

“The future of delivery isn’t just moving packages quickly. It’s about building greater trust throughout the delivery process,” said Neil Gibson, senior vice president, global customer experience,” in a news release.

When a shipper selects FedEx Authenticated Delivery for an eligible shipment, the recipient receives a unique QR code and delivery instructions through Fedex notifications. At delivery, a recipient with the QR code must be present and provide it to the FedEx driver for scanning and validation before the package can be released. No physical signature is required.

FedEx notifications keep recipients informed throughout the delivery process. Vacation holds may be available through FedEx Delivery Manager when needed. To help maintain the security of the shipment, other delivery changes are restricted, including Hold at Location, Redirect to Hold, and address corrections.

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Write to Eric Kulisch at ekulisch@freightwaves.com.

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