It’s no surprise that ground-based regional parcel carriers offer services that are more economical, flexible, and personal than the national giants. Shippers appreciate this. But they also put a premium on the quality of their shipments, and the presumption has been that the nationals are more reliable.
On the surface, it’s easy to see why this perception exists. After all, UPS and FedEx promote billion-dollar marketing programs to build their brands; the message is that they have earned your trust. But what does data show about track records for on-time and intact deliveries?
While many shippers don’t question quality controls or compare efficiency records, the shippers who do weigh quantitative data are discovering a well-kept secret: The more sophisticated regional services have caught up with the nationals in how they deploy technology, and their efficiency levels typically rival that of the giants.
In deciding among express parcel services, shippers are advised to evaluate three major criteria for measuring quality: on-time deliveries, intact packages, and safe-driving standards.
On-time
Carriers typically maintain an ongoing quality index, which tracks errors such as missed pickups and missed routes. They should be prepared to divulge this information and also document their on-time track record for premium overnight as well as deferred ground service deliveries. An acceptable level of performance for on-time delivery should exceed 96%.*
Intact
Another way to gage efficiency is by measuring the number of damaged, lost, or stolen packages that result in claims. Carriers keep records of claims, which they should be willing to share. They compute these figures based on the amount of yearly Bills of Lading compared to the number of filed claims. Ask for the dollar value of the claims expressed as a percentage of the carrier’s total revenue, noting that the industry average is .50%. **
Safe Driving
Your carrier should have an ongoing commitment to safety, and you should ask for evidence of safe driving programs and testing. But how can you quantify safe driving results? Determine the carrier’s number and costs of workers’ compensation accidents. Check the “Mod (Modification) Factor” of the carrier by visiting the National Council on Compensation Insurance: www.ncci.com. The industry average is 1.0%. ***
While FedEx and UPS once held a clear advantage in the tech arena, it’s now a new world where some of the regionals today claim to be even more advanced than the giants.
Below are quality prerequisites:
• Web-based shipping and tracking and tracing. This is a given.
• Bar-coding and scanning. All shipments should be bar-coded to protect confidentiality and expedite tracking. Packages should be scanned at pickup, sort, delivery load, and point of delivery to ensure shipment visibility.
• Mobile scanners. Handheld, wireless, barcode scanners ensure accurate, immediate documentation of packages. Do the drivers carry scanners to track proof of delivery? Do they provide the electronic signature capture option and online upload in real time?
• Instant communication. Drivers should use radio/cellular dispatch, not just beepers.
• Shipping integration systems. Proprietary software should be available.
• Automated sorting and handling. Overhead parcel scanning should be state of the art.
• Automated shipping and billing options. Electronic Data Interchange (EDI) and reference billing allow information to be sorted by date or another coding system. This promotes accuracy and expedites charge-backs.
As you apply these efficiency tests, remember that not all regionals are the same, so it’s a good idea to compare regional, messenger, as well as national services.
At the end of the day, shippers will always look for lower costs and higher quality. Now, you can have it both ways.
Jim Berluti is President & CEO of Eastern Connection, the largest regional small-package overnight carrier on the East Coast, covering over 5,000 zip codes in the Northeast. The company, which has 17 facilities, is open 7 days a week and 365 days a year. Services include Next-Day Ground, Priority Overnight, Same-Day, Second-Day, Logistics & Warehousing, Trucking, and Expedited Mail. For more information, visit www.easternconnection.com.
* Eastern Connection reports an on-time, intact delivery record of 98.6%, believed to be an industry best, and it guarantees less expensive next-day ground delivery by 5 p.m.
** Eastern Connection’s damages are 1 per 14,500 pieces. This is less than .0007%, or less than .00070% of total revenue.
***Eastern Connection’s Mod Factor is less than 1%.
Jim Berluti is President & CEO of Eastern Connection, the largest regional small-package overnight carrier on the East Coast, covering over 5,000 zip codes in the Northeast. The company, which has 17 facilities, is open 7 days a week and 365 days a year. Services include Next-Day Ground, Priority Overnight, Same-Day, Second-Day, Logistics & Warehousing, Trucking, and Expedited Mail. For more information, visit www.easternconnection.com.
On the surface, it’s easy to see why this perception exists. After all, UPS and FedEx promote billion-dollar marketing programs to build their brands; the message is that they have earned your trust. But what does data show about track records for on-time and intact deliveries?
While many shippers don’t question quality controls or compare efficiency records, the shippers who do weigh quantitative data are discovering a well-kept secret: The more sophisticated regional services have caught up with the nationals in how they deploy technology, and their efficiency levels typically rival that of the giants.
In deciding among express parcel services, shippers are advised to evaluate three major criteria for measuring quality: on-time deliveries, intact packages, and safe-driving standards.
On-time
Carriers typically maintain an ongoing quality index, which tracks errors such as missed pickups and missed routes. They should be prepared to divulge this information and also document their on-time track record for premium overnight as well as deferred ground service deliveries. An acceptable level of performance for on-time delivery should exceed 96%.*
Intact
Another way to gage efficiency is by measuring the number of damaged, lost, or stolen packages that result in claims. Carriers keep records of claims, which they should be willing to share. They compute these figures based on the amount of yearly Bills of Lading compared to the number of filed claims. Ask for the dollar value of the claims expressed as a percentage of the carrier’s total revenue, noting that the industry average is .50%. **
Safe Driving
Your carrier should have an ongoing commitment to safety, and you should ask for evidence of safe driving programs and testing. But how can you quantify safe driving results? Determine the carrier’s number and costs of workers’ compensation accidents. Check the “Mod (Modification) Factor” of the carrier by visiting the National Council on Compensation Insurance: www.ncci.com. The industry average is 1.0%. ***
While FedEx and UPS once held a clear advantage in the tech arena, it’s now a new world where some of the regionals today claim to be even more advanced than the giants.
Below are quality prerequisites:
• Web-based shipping and tracking and tracing. This is a given.
• Bar-coding and scanning. All shipments should be bar-coded to protect confidentiality and expedite tracking. Packages should be scanned at pickup, sort, delivery load, and point of delivery to ensure shipment visibility.
• Mobile scanners. Handheld, wireless, barcode scanners ensure accurate, immediate documentation of packages. Do the drivers carry scanners to track proof of delivery? Do they provide the electronic signature capture option and online upload in real time?
• Instant communication. Drivers should use radio/cellular dispatch, not just beepers.
• Shipping integration systems. Proprietary software should be available.
• Automated sorting and handling. Overhead parcel scanning should be state of the art.
• Automated shipping and billing options. Electronic Data Interchange (EDI) and reference billing allow information to be sorted by date or another coding system. This promotes accuracy and expedites charge-backs.
As you apply these efficiency tests, remember that not all regionals are the same, so it’s a good idea to compare regional, messenger, as well as national services.
At the end of the day, shippers will always look for lower costs and higher quality. Now, you can have it both ways.
Jim Berluti is President & CEO of Eastern Connection, the largest regional small-package overnight carrier on the East Coast, covering over 5,000 zip codes in the Northeast. The company, which has 17 facilities, is open 7 days a week and 365 days a year. Services include Next-Day Ground, Priority Overnight, Same-Day, Second-Day, Logistics & Warehousing, Trucking, and Expedited Mail. For more information, visit www.easternconnection.com.
* Eastern Connection reports an on-time, intact delivery record of 98.6%, believed to be an industry best, and it guarantees less expensive next-day ground delivery by 5 p.m.
** Eastern Connection’s damages are 1 per 14,500 pieces. This is less than .0007%, or less than .00070% of total revenue.
***Eastern Connection’s Mod Factor is less than 1%.
Jim Berluti is President & CEO of Eastern Connection, the largest regional small-package overnight carrier on the East Coast, covering over 5,000 zip codes in the Northeast. The company, which has 17 facilities, is open 7 days a week and 365 days a year. Services include Next-Day Ground, Priority Overnight, Same-Day, Second-Day, Logistics & Warehousing, Trucking, and Expedited Mail. For more information, visit www.easternconnection.com.
