Parcel shipping and parcel delivery businesses generally revolve around what the major parcel carriers are offering, like USPS, DHL, UPS, and FedEx. In contrast, what a lot of shippers would prefer, is that parcel shipping centers itself on the changing needs of parcel shipper demands. The good news is, the parcel shipping business is heading toward the latter.
It’s not uncommon for general rate increases similar fees to occur, even contradicting the three-year contract you signed, because major parcel providers are focused on assets, and they report to shareholders. Of course, they also have regulations restricting their operations, but added or extra fees will be included as necessary for them to meet profit expectations.
Parcel carriers can focus on their own needs, not parcel shipping company needs, because, well, they know what they’re doing. Which means, you should work hard to know more than they do to take back control of your parcel shipping. So, how do they do it?
The first way they go about it is with complicated parcel shipping pricing issues or ambiguous pricing. There are complicated matrices for pricing of third-party billing fees, dim weight pricing indexes, fuel surcharges, and peak or holiday season surcharges for parcel shipping.
The second way is changing parcel shipping mid-year. Parcel carriers adjust their personal tariffs, which significantly impacts your parcel shipping spend. Changes in your parcel shipment planning and service levels are a couple ways that your parcel shipping will be affected by the parcel carrier’ changes.
Finally, parcel shippers often struggle with the ambiguity and rapid changes in pricing if they deal with a lot of ecommerce shipping directly to consumers. Dealing with business to consumer ecommerce shipping is a complicated process when it comes to parcel shipping prices.
To put it simply, Amazon. Competing parcel carriers, like UPS, USPS, and so on, are working harder to meet consumer demands because Amazon is forcing them to. USPS is now finding success with packages because of their delivery network and six day a week delivery for parcel shipping. UPS also moved to deliver on Saturday in certain areas, and USPS and FedEx are doing similar things.
There are ways parcel shipping companies can change their situation, however. There are combinations of shipping software and parcel auditing solutions that can give you enough knowledge to compete with your parcel carriers and ensure you get good parcel shipping rates. It all comes down to who knows more in negotiations, so here are ways you can know more than your carriers.
Using a strong and effective transportation management system (TMS) over the cloud will be an important piece of shipping software for parcel shippers. It will show you a multitude of carrier rate tables and service offerings to show you where you can get cheap shipping rates on the best parcel shipping services. This allows you to see the major players, as well as regional or less-traditional parcel carriers. Having a wide variety of options for parcel shipping rates to search through will enable you to better meet customer demands of faster shipping speeds and cheaper shipping rates.
Parcel auditing is another essential tool for parcel shipping. Parcel auditing works in two ways. Parcel auditing helps you save money shipping by getting refunds from parcel carriers and ensuring you’re getting what you paid for, at the rate it was supposed to cost you. Parcel auditing, like transportation management system shipping software, also provides a great deal of shipping data. The data that parcel auditing provides you will help you make better shipping decisions about which parcel carrier to use based on their performance and on-time delivery record, and the shipping rates for given services. Parcel auditing is as essential as a transportation management system to keep ahead in the industry.
So, what really matters when it comes to topping the parcel carriers, make sure you know more about your parcel shipping than they do. The most effective way to be sure that’s true is to combine TMS shipping software, and parcel auditing services. Parcel auditing and transportation management system shipping software is a fantastic combination to optimize your supply chain management and make sure that even as an ecommerce shipping business, parcel carriers are giving you the very best for your parcel shipping.