{"id":3501,"date":"2026-06-17T11:44:01","date_gmt":"2026-06-17T09:44:01","guid":{"rendered":"https:\/\/axell-group.com\/en\/?post_type=article&#038;p=3501"},"modified":"2026-06-17T11:45:05","modified_gmt":"2026-06-17T09:45:05","slug":"what-is-parcel-management-and-how-does-it-work","status":"publish","type":"article","link":"https:\/\/axell-group.com\/en\/knowledge-base\/what-is-parcel-management-and-how-does-it-work\/","title":{"rendered":"What is parcel management and how does it work?"},"content":{"rendered":"<p>Parcel management helps companies organise, manage and monitor parcel shipments more efficiently. It brings together different carriers, shipping processes and tracking information in one central system. Especially for e-commerce companies and organisations that ship large numbers of parcels every day, parcel management provides greater control over costs, performance and customer satisfaction.<\/p>\n<p>Within the supply chain, parcel management plays an important role. It ensures that orders are processed quickly and efficiently from the warehouse, matched with the right carrier and provided with up-to-date track &amp; trace information. This creates greater visibility across the entire shipping process.<\/p>\n<h2 class=\"wp-block-heading\">What is parcel management?<\/h2>\n<p>Parcel management is the management and optimisation of parcel shipments within an organisation. All activities related to shipping parcels are centrally controlled. This includes selecting carriers, creating shipping labels, tracking shipments and analysing shipping performance.<\/p>\n<p>Where companies previously often depended on a single carrier, many organisations now work with multiple transport partners simultaneously. Parcel management makes it possible to manage these carriers from one environment. This allows companies to choose the most suitable option for each shipment based on cost, delivery time or destination.<\/p>\n<p>For organisations with growing order volumes, this not only provides greater flexibility but also more insight into the performance of their logistics processes.<\/p>\n<h2 class=\"wp-block-heading\">What does parcel management mean in practice?<\/h2>\n<p>In practice, parcel management starts as soon as a customer places an order. The system receives order data from a webshop, ERP system or warehouse management system and then determines how the shipment can be processed most efficiently.<\/p>\n<p>Imagine an online store shipping hundreds of orders every day to different countries across Europe. Some parcels need to be delivered quickly, while for other shipments the lowest transportation costs are the priority. Parcel management helps automatically select the right carrier for each specific situation.<\/p>\n<p>In addition, it provides insight into the progress of shipments. Both the company and the end customer can track where a parcel is located and when delivery is expected. This reduces uncertainty and results in fewer customer service enquiries.<\/p>\n<p>For companies dealing with seasonal peaks or rapid growth, parcel management can also contribute to a more stable and scalable logistics operation.<\/p>\n<h2 class=\"wp-block-heading\">How does parcel management work?<\/h2>\n<p>Parcel management consists of several steps that together ensure an efficient shipping process.<\/p>\n<h3 class=\"wp-block-heading\">Processing order data<\/h3>\n<p>The process begins with receiving order information. This data is automatically retrieved from, for example, a webshop, ERP system or fulfilment environment.<\/p>\n<h3 class=\"wp-block-heading\">Selecting the right carrier<\/h3>\n<p>The system then determines which carrier best fits the specific shipment. Factors such as destination, weight, delivery time and shipping costs can be taken into account.<\/p>\n<h3 class=\"wp-block-heading\">Creating shipping documents<\/h3>\n<p>After carrier selection, shipping labels, transport documents and tracking codes are automatically generated. This reduces the likelihood of manual errors.<\/p>\n<h3 class=\"wp-block-heading\">Tracking and monitoring<\/h3>\n<p>During transport, the system collects real-time information about the status of the shipment. This provides greater insight into delivery times and carrier performance.<\/p>\n<h3 class=\"wp-block-heading\">Reporting and optimisation<\/h3>\n<p>Parcel management often provides extensive reporting capabilities that allow companies to analyse performance. This makes it possible to identify which carriers perform best, where delays occur and what opportunities exist to reduce costs.<\/p>\n<h2 class=\"wp-block-heading\">Why do companies use multiple carriers?<\/h2>\n<p>More and more organisations are choosing a multi-carrier strategy. Instead of relying on a single carrier, they work with a network of different transport partners.<\/p>\n<p>This provides greater flexibility when volumes increase or when a carrier temporarily has less capacity available. Companies can also select the most suitable carrier based on destination or product category.<\/p>\n<p>In addition, a multi-carrier approach often results in better negotiation opportunities and greater delivery reliability. If one carrier experiences delays, it is easier to switch to an alternative.<\/p>\n<p>Parcel management serves as the central link connecting all carriers.<\/p>\n<h2 class=\"wp-block-heading\">Benefits and points of attention<\/h2>\n<p>A well-structured parcel management process offers several advantages.<\/p>\n<p>Greater control over shipping costs is achieved because companies can easily compare and use different carriers.<\/p>\n<p>Improved customer satisfaction is achieved through reliable deliveries and up-to-date track &amp; trace information.<\/p>\n<p>Higher operational efficiency results from the automation of many manual activities.<\/p>\n<p>Greater insight into performance makes it possible to continuously improve processes.<\/p>\n<p>At the same time, there are also points of attention. Parcel management delivers the most value when systems are properly integrated. If order data, inventory information and shipping information are not properly aligned, errors can still occur.<\/p>\n<p>In addition, it is important to regularly evaluate whether carriers still match the organisation&#8217;s needs and customer expectations.<\/p>\n<h2 class=\"wp-block-heading\">How does a logistics partner support this?<\/h2>\n<p>Parcel management does not stand alone. It is part of a broader logistics process in which inventory management, order processing, storage and distribution work closely together.<\/p>\n<p>When parcel shipments are directly linked to processes such as <a href=\"https:\/\/axell-group.com\/en\/warehousing\/fulfilment\/\">fulfilment services<\/a>, greater control is achieved over the entire order flow. A well-organised <a href=\"https:\/\/axell-group.com\/en\/warehousing\/\">warehouse<\/a> also plays an important role in the fast and error-free processing of orders.<\/p>\n<p>For organisations with growing volumes, efficient <a href=\"https:\/\/axell-group.com\/en\/distribution\/\">distribution<\/a> can further contribute to improved delivery reliability and greater control over logistics costs.<\/p>\n","protected":false},"featured_media":3074,"template":"","cat_article":[54],"class_list":["post-3501","article","type-article","status-publish","has-post-thumbnail","hentry","cat_article-warehousing"],"acf":[],"_links":{"self":[{"href":"https:\/\/axell-group.com\/en\/wp-json\/wp\/v2\/article\/3501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axell-group.com\/en\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/axell-group.com\/en\/wp-json\/wp\/v2\/types\/article"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axell-group.com\/en\/wp-json\/wp\/v2\/media\/3074"}],"wp:attachment":[{"href":"https:\/\/axell-group.com\/en\/wp-json\/wp\/v2\/media?parent=3501"}],"wp:term":[{"taxonomy":"cat_article","embeddable":true,"href":"https:\/\/axell-group.com\/en\/wp-json\/wp\/v2\/cat_article?post=3501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}