Why It’s Good to Measure Cost Vs Service with the Big Three Small Parcel Carriers and Fine Tune Your E-Commerce Shipping System ~
One consequence of the e-commerce shopping revolution is that many shippers are facing a growing small parcel freight bill for direct-to-consumer shipping. Combine that with consumer demand for fast, inexpensive or free shipping, and it’s easy to see why it’s wise to continually monitor your carrier options.
The best way to stay nimble in addressing shipping costs is to implement a carrier-agnostic, multi-carrier e-commerce shipping system. You’ll:
- Speed up shipment processing by eliminating manual processes.
- Gain better control over shipping costs by comparing carrier rates on every order.
- Gain a better carrier reporting tool that makes it easy to track costs, delivery results and more.
A Multi-Carrier Shipping System Drives Lower Freight Rates
Online retailer Legendary Whitetails, for example, uses small parcel carriers, the U.S. Postal Service® and shipping consolidators for delivery, all maintained on Ship-IT. Huffman uses Ship-IT’s reporting tools to generate carrier reports and monitor shipping costs.
This multi-carrier system approach has delivered immediate payback in carrier negotiations. “When you’re dealing with an arbitrage rate shopping system it’s fairly cut and dried as to who is going to deliver the package,” said Ben Huffman, vice president of operations for the company. “If you can compare similar service levels between carriers, you force them to compete on price and get creative, so they come to the table with their best rate.”
Huffman also likes the ease with which he can add new carriers. “For example, when we wanted to add a new carrier like Newgistics, it was no problem at all. It was cost-effective to do, making it a slam-dunk to make this kind of decision,” he said.
To learn more, download the Legendary Whitetails case study.
Balancing Service and Cost
It’s always good to see how the leading small parcel carriers’ services and costs compare. For a comparison of costs as listed by the carriers earlier in 2016, check out this interesting infographic by our partner, Endicia.com, below. Also, keep in mind that UPS and FedEx have both announced rate increases effective 2017.
For more information on how to implement a multi-carrier e-commerce shipping system to reduce your shipping costs, contact us today.
Logistyx Technologies is a provider of carrier-agnostic e-commerce fulfillment software and shipping software solutions that enable shippers to manage all their small parcel, LTL postal, regional, national and international carriers on one platform. We also help companies automate their reverse logistics process for greater efficiency and lower cost.
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