As ecommerce increases, so do shipping costs!

The largest small package providers in the US implemented 4.9% rate increases in January 2018 plus a number of oversize, additional handling and residential delivery charges.

Here are some tips on managing rising transportation expenses:

  1. Formal Contract Negotiations – Regardless of your contract terms, it’s imperative that you are performing a competitive bid process with your current provider plus other national and regional carriers. Competition is key to lowering rates and surcharges.
  2. Expand Delivery Services – Customers are demanding more delivery options including two-day, next day, same day and hold at location options.
  3. Leverage your Physical Stores – If you have existing stores they should be an integral part of your strategy resulting in shipping savings, increased store traffic and sales in your stores.
  4. Controlling Costs – Delivery processes and costs across the entire omnichannel enterprise should be re-engineered for efficiency and service; from ship to store, drop shipping, etc.
  5. Implement Freight Audit/Recovery ServicesWith over 200 small package accessorial charges today you need a sophisticated service provider to ensure you are being billed properly.
  6. Reduce the Size and Weight of your Packages – Thru engineering take out waste and costly dimensional weight fees.
  7. Data Analytics – Real time data is needed providing visibility to your Supply Chain and service providers to ensure you can manage and adjust based on performance/industry trends.
  8. Convert from Vendor Pre-Paid Inbound – Convert from vendor pre-paid of inbound shipments to collect inbound charges with an allowance, to reduce expenses and improve cycle time.
  9. Network Optimization – Ensure your omnichannel network is fully optimized regarding locations and inventory levels to ensure superior customer service.
  10. Utilize a Subject Matter Expert – Today, the small parcel industry is more complex than ever. Align yourself with a service provider that has deep industry knowledge, operational background and proprietary cost models to determine what your actual costs should be with the carriers based on your specific profiles, not benchmarks.

To learn more about ways that you can manage costs
and speak to a subject matter expert, contact us!