--- title: "Building a Secure Enterprise Shipping Tech Stack: Why SOC 2 Type II Matters" description: Learn how SOC 2 Type II reports help organizations evaluate data protection, access controls and operational reliability across connected shipping technology image: https://blog.shiperp.com/hubfs/iStock-2174551157.jpg --- [![shiperp](https://blog.shiperp.com/hs-fs/hubfs/raw_assets/public/ShipERP_January2021/images/header-logo.png?width=720&height=50&name=header-logo.png "shiperp")](https://shiperp.com/) Menu - [About](https://shiperp.com/about/) - [Our Company](https://shiperp.com/about/) - [News & Events](https://shiperp.com/news-and-events/) - [Our Carriers](https://shiperp.com/shiperp-shipping-carriers/) - [Our Customers](https://shiperp.com/shiperp-users/) - [Partnerships](https://shiperp.com/about/partnerships) - [Careers](https://workforcenow.adp.com/mascsr/default/mdf/recruitment/recruitment.html?cid=01941100-00e7-48f9-ab7c-eeebe5fa1386&ccId=19000101_000001&lang=en_US) - [Shipping Solutions](https://shiperp.com/our-shipping-solutions/) - [**ShipERP Core** Multi-Carrier/Multi-mode Shipping Solution](https://shiperp.com/shipping-solutions/sap-shiperp-core/) - [**ShipERP Cloud** Cloud Shipping Software](https://shiperp.com/shipping-solutions/shiperp-cloud/) - [**ShipSOI** Sales Order Integration](https://shiperp.com/shipping-solutions/sap-sales-order-integration/) - [**ShipEWM** Parcel Shipping for SAP EWM](https://shiperp.com/shipping-solutions/sap-extended-warehouse-management/) - [**ShipTM** Parcel Shipping for SAP TM](https://shiperp.com/shipping-solutions/shiptm-parcel-transportation/) - [**ShipERP Spotlight Parcel Carrier Spend Management**](https://shiperp.com/shipping-solutions/shiperp-spotlight-parcel-carrier-spend-management/) - [**AuditERP** Freight Audit](https://shiperp.com/shipping-solutions/sap-freight-audit/) - [**CarrierPORTAL**](https://shiperp.com/shipping-solutions/sap-carrier-portal/) - [**SupplierPORTAL**](https://shiperp.com/shipping-solutions/sap-supplier-portal/) - [Compliance Solutions](https://shiperp.com/compliance-solutions/) - [**ShipAVM** Address Validation](https://shiperp.com/compliance-solutions/sap-address-validation/) - [**ShipAES** Automated Export System](https://shiperp.com/compliance-solutions/sap-automated-export-system/) - [**ShipDPS** Denied Party Screening](https://shiperp.com/compliance-solutions/sap-denied-party-screening/) - [**ShipHAZ** Hazardous Material](https://shiperp.com/compliance-solutions/sap-hazardous-material/) - [**ShipATLAS** German Automated Export System](https://shiperp.com/compliance-solutions/sap-atlas/) - [Resources](https://learn.shiperp.com/shipping-resources-by-shiperp) - [**ShipERP University** Customer Training Program](https://learn.shiperp.com/shiperp-university) - [Webinars](https://learn.shiperp.com/webinars) - [Downloadable Resources](https://learn.shiperp.com/shipping-resources-by-shiperp) - [Blog](https://blog.shiperp.com/) - [Customer Success Stories](https://learn.shiperp.com/case-studies) - [Parcel Shipping](https://shiperp.com/parcel-shipping/) - [**Multi-Carrier Shipping** How ShipERP Handles Multi-Carrier Shipping](https://shiperp.com/multicarrier-shipping/) - [**Enterprise Shipping** Why Use ShipERP For Enterprise Shipping](https://shiperp.com/enterprise-shipping/) - [Shipping Tracking Software](https://shiperp.com/shipment-tracking-software/) - [Contact](https://shiperp.com/contact/) - [Contact Us](https://shiperp.com/contact/) - [Customer Support Login](https://support.erp-is.com/support/home?__hstc=106397660.63c6d9173278e0d7264effd3291fe0e5.1587107689792.1587107689792.1587107689792.1&__hssc=106397660.12.1587107689793&__hsfp=377607323) [Customer Support](https://support.erp-is.com/support/home?__hstc=106397660.8370dcb1fffd567a303f81c31fe578ef.1610618620550.1610618620550.1610623714161.2&__hssc=106397660.2.1610623714161&__hsfp=3253249625) [Schedule Live Demo](https://learn.shiperp.com/shiperp-shipping-software-demo) ![](https://blog.shiperp.com/hubfs/iStock-2174551157.jpg) # Building a Secure Enterprise Shipping Tech Stack: Why SOC 2 Type II Matters Published by [Maddy Bhatia](https://blog.shiperp.com/author/maddy-bhatia) on Aug 3, 2026, 9:06:17 AM Enterprise shipping depends on a growing network of connected technologies. An organization may use an ERP system to manage orders, a warehouse management system to prepare inventory, a shipping platform to create shipments, carrier APIs to generate labels and a tracking solution to monitor delivery. These connections make shipping operations faster and more scalable, but they also expand the number of systems that can access, process or transmit sensitive business information. Customer addresses, order details, shipment data, account numbers and operational records may pass through several providers before a package reaches its destination. As a result, technology evaluations should consider more than features, integrations and implementation costs. Organizations also need to understand how technology vendors protect data, manage system access and support reliable operations. One of the most recognized ways to access these controls is through a SOC 2 Type II report. > ## **What is SOC 2 Type II?****** > > SOC 2 Type II (Systems and Organization Controls) is an independent audit that evaluates whether a service organization has effective controls for protecting customer data over an extended period of time. Unlike a Type I report, which evaluates controls at a single point in time, a Type II report tests how those controls operated throughout the audit period. > > For organizations evaluating enterprise shipping technology, a SOC 2 Type II report provides additional assurance that a vendor follows established security and operational practices. ## **Shipping Technology Environment Extends Beyond Internal Systems** A company’s technology environment once centered primarily on systems managed within its own network. Today, a single shipment may involve several internal and external platforms. A single shipment may move through multiple platforms, including: - Enterprise resource planning (ERP) systems - Warehouse management systems (WMS) - Transportation management systems (TMS) - Shipping execution software - Address validation services - Customs and trade compliance solutions - Shipment visibility platforms Every integration creates another point where business information is exchanged—and another provider responsible for protecting that information.. Because of this, a company’s cybersecurity and operational risk extends beyond the systems it manages directly. It also depends on the controls maintained by the service providers connected to those systems. The [AICPA](https://www.aicpa-cima.com/resources/landing/system-and-organization-controls-soc-suite-of-services) (American Institute of CPAs) describes SOC reports as a source of information organizations can use to assess and address risks associated with outsourcing services. ### **Every Connected Shipping Vendor Introduces Risk** Depending on the service, a shipping technology vendor may: - Connect directly to an ERP, TMS, WMS or order management system - Access customer, order or shipment information - Communicate with carriers and logistics providers - Generate shipping labels and regulatory documents - Support high-volume, business-critical transactions - Store data within a cloud environment - Use subcontractors or other external service providers A disruption or control failure within one of these systems can affect the larger shipping process. Potential risks may include: - Unavailable carrier connections - Interrupted shipment processing - Incorrect documentation - Delayed labels - Inaccurate data - Unauthorized access to sensitive information Third-party risk therefore requires more than reviewing a vendor’s product capabilities. Organizations need a structured process for identifying vendors, assessing their risks, performing due diligence and reviewing them over time. These are among the vendor-management practices identified by the AICPA. ## **What Is a SOC 2 Report?** A SOC 2 report is an independent examination of controls within a service organization’s defined system. It is designed to provide customers, business partners, auditors and other authorized users with information about controls relevant to one or more Trust Services Criteria: - Security - Availability - Processing integrity - Confidentiality - Privacy The exact criteria, products, infrastructure and processes included depend on the scope of the individual examination. A report may cover a specific platform or service rather than every product offered by the vendor. ## **Why SOC 2 Type II Matters for Enterprise Shipping Technology** Shipping applications can sit at a critical point between enterprise systems and external carrier networks. Depending on the solution, the platform may be responsible for: - Receiving order and delivery information - Selecting a carrier service - Creating a shipment - Generating labels - Producing documentation - Returning tracking information to the source system Because these platforms support critical shipping workflows, failures can affect warehouse operations, customer service, transportation execution and delivery performance. A SOC 2 Type II report can help organizations evaluate controls related to several important areas. ### **Access Management** The report may provide information about how the vendor authorizes users, manages privileged access, reviews permissions and removes access when it is no longer required. These controls are particularly relevant when the application connects to an ERP or other system containing customer, financial or operational information. ### **System Availability** Shipping operations often run within narrow carrier pickup windows. An unavailable application can prevent warehouses from processing shipments, printing labels or completing required documentation. When availability is included within the examination, the report may provide information about controls supporting system monitoring, recovery and operational continuity. ### **Processing Integrity** Shipment execution depends on information being processed accurately and completely. Controls related to processing integrity may address whether system activity is authorized, recorded and completed as intended. For a shipping application, this can be relevant to shipment transactions, carrier communications, documents and data returned to enterprise systems. ### **Confidentiality and Privacy** Shipping platforms may process customer names, delivery addresses, contact information and order details. Depending on the report’s scope, confidentiality and privacy criteria may provide additional information about how sensitive information is collected, used, retained, protected and disposed of. ## **How SOC 2 Type II Supports Vendor Due Diligence** A SOC 2 Type II report should be treated as one component of a broader technology risk evaluation. It can provide security, procurement, compliance and IT teams with a standardized source of independently examined information. Rather than relying solely on vendor questionnaires or marketing claims, organizations can review independently tested controls and audit results. A SOC 2 report may help organizations: - Understand the system and services covered by the examination - Review the controls maintained by the vendor - Identify exceptions found during testing - Determine which external service providers are involved - Understand responsibilities assigned to the customer - Support internal security and compliance reviews - Document vendor due diligence - Identify areas requiring additional questions or contractual protections AICPA guidance identifies report sections, control exceptions, subservice organizations, complementary user entity controls and bridge letters as important considerations when reviewing a SOC 2 report. ## **Building a Trusted Shipping Technology Ecosystem** Enterprise shipping depends on an interconnected network of systems, applications and service providers. Each connection can add useful capabilities, but it can also introduce new dependencies and risks. A SOC 2 Type II report provides organizations with independently examined information about the controls within a vendor’s defined system and how those controls operated during the examination period. It does not replace a complete vendor-risk assessment, but it can provide valuable evidence during technology selection and ongoing vendor management. **ShipERP maintains SOC 2 Type II compliance as part of its approach to protecting customer information and supporting system reliability.** For organizations evaluating shipping technology that connects with enterprise systems and carrier networks, this provides an additional source of assurance during the vendor-review process. To learn more about how ShipERP supports secure, connected enterprise shipping operations, [contact our team](https://shiperp.com/contact/). Tags: [Compliance](https://blog.shiperp.com/tag/compliance), [Software](https://blog.shiperp.com/tag/software), [Supply Chain Management](https://blog.shiperp.com/tag/supply-chain-management) [Back to Blog](https://blog.shiperp.com) ## Related Articles ## [How to Lower Your Freight Audit Discrepancy Rate](https://blog.shiperp.com/lower-your-freight-audit-discrepancy-rate) Every shipment generates a carrier invoice, and behind every invoice is an assumption: the numbers... [Read More](https://blog.shiperp.com/lower-your-freight-audit-discrepancy-rate) ## [13 Ways To Reduce Shipping Costs | ShipERP](https://blog.shiperp.com/better-carrier-rates) Shipping costs can add up to astronomical heights, but don’t just accept it as it is! Reduce the... [Read More](https://blog.shiperp.com/better-carrier-rates) ## [13 Problem-Solving Shipping Procurement Tools](https://blog.shiperp.com/shipping-procurement-tools) New to shipping procurement or need a refresher? 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