Here are 5 tips to you can use to reduce your parcel expenses:
1. Modal Optimization: Restructuring business rules to route packages by cost of transit and service times.
2. Reduce air space when possible to take advantage of Flat Rate, Regional Flat Rate and Cubic Priority Mail offerings. “If it fits, it ships!”
3. Work with a parcel consolidator program that has special NSA pricing that:
• allows you to participate in Cubic pricing tiers
• provides an extra $50 in free insurance. “CPP” and “NSA” customers receive $100 per package while “Base” customers get $50.
• has no annual commitment – avoids the worry of paying the difference, a very real concern!
• allow you to ship 14-, 15- and 16-ounce packages at the “Plus” tier for First Class Package Services. Without “Plus” pricing, packages over 13 ounces must go at the more expensive Priority Mail rate.
4. Enable the customer to make a shipping cost decision based upon time of transit, not specific carrier service mode. Use a carrier management system to determine the lowest cost based upon dimensions and weight/zone that includes your negotiated rates with (FedEx and UPS) ancillary costs considered.
5. Consider working with a 3rd party organization to help you both modally optimize and negotiate best-in-class carrier contracts, while right sizing the Earned Discount (Portfolio) Incentive Tiers to reflect the modally moved volume to lower cost carriers.
Gordon S. Glazer, CMDSM, CMDSS, MDP, MDC is Director of Strategic Partnerships with Shipware LLC. Contact (858)879.2020 x 108 or Gordon@shipwarellc.com
1. Modal Optimization: Restructuring business rules to route packages by cost of transit and service times.
2. Reduce air space when possible to take advantage of Flat Rate, Regional Flat Rate and Cubic Priority Mail offerings. “If it fits, it ships!”
3. Work with a parcel consolidator program that has special NSA pricing that:
• allows you to participate in Cubic pricing tiers
• provides an extra $50 in free insurance. “CPP” and “NSA” customers receive $100 per package while “Base” customers get $50.
• has no annual commitment – avoids the worry of paying the difference, a very real concern!
• allow you to ship 14-, 15- and 16-ounce packages at the “Plus” tier for First Class Package Services. Without “Plus” pricing, packages over 13 ounces must go at the more expensive Priority Mail rate.
4. Enable the customer to make a shipping cost decision based upon time of transit, not specific carrier service mode. Use a carrier management system to determine the lowest cost based upon dimensions and weight/zone that includes your negotiated rates with (FedEx and UPS) ancillary costs considered.
5. Consider working with a 3rd party organization to help you both modally optimize and negotiate best-in-class carrier contracts, while right sizing the Earned Discount (Portfolio) Incentive Tiers to reflect the modally moved volume to lower cost carriers.
Gordon S. Glazer, CMDSM, CMDSS, MDP, MDC is Director of Strategic Partnerships with Shipware LLC. Contact (858)879.2020 x 108 or Gordon@shipwarellc.com
