4 Ways Shippers Can Keep Parcel Costs in Check
3. Consider using regional carriers or the USPS for a percentage of your traffic. Priority Mail is a terrific product that offers two day to three day delivery at competitive rates and no accessorial charges for lightweight shipments. Volume shippers are entitled to Commercial Plus discounts or even negotiated pricing. But you don't have to be a large shipper to realize savings. Compare USPS Flat Rate products with private carrier pricing. Companies like USS Logistics are authorized USPS resellers that can pass along significant savings.
4. Seek help. There are many qualified freight auditors, consulting companies and third-party logistics providers that can identify and recover bottom-line savings. Shippers surveyed in Morgan Stanley's Annual Best Practices Survey reported savings of more than 49 percent by using third-party resources.
I've talked a lot about rising costs and bad news for shippers. The good news is that service levels — already at all-time highs — will continue to improve in 2011. The more profitable the business, the greater the ability to invest in people, infrastructure, technology, sorting facilities, aircraft, trucks and delivery vehicles, maintenance facilities, contingency plans, and so on.
As always, let me know if I can help!
Rob Martinez is the CEO of Shipware LLC, a professional services firm that transforms businesses through intelligent distribution solutions and strategies. Rob has helped some of the world’s most recognizable brands reduce parcel shipping costs an average of 25 percent through contract negotiations, rate benchmarking, modal optimization, invoice audit and other savings vehicles. A cum laude graduate of UCLA, Rob has 20 years of transportation industry experience, including executive positions at DHL and Stamps.com, in addition to his work as an outside consultant since 2001.