8 Ways to Use Parcel Carriers’ ‘Cost to Serve’ Pricing to Your Advantage
5. Throw away handwritten airbills. Ensure that all packages are processed through some type of automation so that all shipping labels are "smart" labels. These labels allow for faster and more accurate routing of packages throughout the carrier network, minimize the chance of misdelivery due to illegible addresses, eliminate the need for manual entry, and make carrier invoicing much more efficient.
6. Work with your carrier to better understand those packages that spike your cost profile, and consider giving those to an alternative carrier. Alternatively, there may be ways you can alter package dimensions or other characteristics to reduce your cost profile.
7. If you're predominantly a residential shipper, consider the use of FedEx SmartPost or UPS SurePost. These products are designed for low value, lightweight, residential packages. In addition, encourage your customers to sign up for UPS My Choice, a service being used by more than 2.5 million customers that empowers them with greater flexibility to schedule delivery, receive shipment alerts, reroute packages, authorize delivery online and more.
8. Work with your carrier's local, district and regional hub operations to identify efficient and lower-cost options, including hub bypass, onsite containerization, staging, sweeps, trailer drops, etc. Proactively communicate heavy package volumes or other out-of-the-ordinary operational needs for better equipment and personnel planning.
By focusing on lowering your carrier's operating costs, you'll be doing yourself a favor by reducing your cost profile to get improved pricing — and very likely improve the efficiency of your operation at the same time!