The parcel shipper or small package shipper usually finds ground shipping to be the most economical way to transport goods domestically. (Of course, ground shipping, which relies heavily on the variously-sized trucks of parcel carriers such as UPS and FedEx, usually takes longer than air shipping, which offers domestic shippers the choice of overnight or next day delivery.) However, both of these ground-shipping carriers, UPS and FedEx, recently increased their ground shipping rates by about 4.9%. Unfortunately for the small package shipper facing the new prices, simply choosing one parcel carrier over the other will do little good: a quick study of FedEx vs UPS rates for the average domestic shipment reveals no clear and consistent winner. How can the parcel shipper or freight shipper cope with the new costs of doing business? Do any good strategies exist for reducing shipping costs?
One fact that parcel shippers must bear in mind, whether shipping with UPS, FedEx, DHL, or other parcel carriers, is that rates nowadays are determined by package dimensions, and not on the basis of the old shipping classes. Routes and delivery schedules, too, are ever evolving. As a package shipper may still be using outmoded parcel accounting, and shipping systems to plan and execute parcel transport or trucking, they could be missing out on substantial cost reduction and logistics management solutions that might mitigate the negative impact of the recent parcel carrier rate increases.
The solution for small parcel shippers is not to go it alone, but rather to build a partnership with a small parcel auditing company. Small parcel auditing companies and freight audit companies (as well as those who handle both) deploy the best in freight invoice audit software, and parcel auditing software, dimensions-focused calculators and solutions for inbound logistics and outbound logistics to provide the most comprehensive expense management solutions. The experience and technology of the best small parcel auditing companies and freight audit companies allows them to negotiate rates among parcel carriers and freight carriers, provide clients with shipping cost comparisons for cheap shipping rates, perform parcel auditing, and manage payment to carriers.
In addition, the ability for a parcel auditing company to watch and be involved in all parts of a shipment’s journey affords it the ability to collect, aggregate and analyze data, which ultimately helps the small parcel shipper or freight shipper client make better decisions in the future as to allocation of resources, among other things. An audit company’s expertise and multidimensional software platforms thus achieve cost reduction and optimize all aspects of supply chain logistics to save money shipping, effectively counteracting the rate increases of such parcel carriers as the much depended-upon ground shippers, FedEx and UPS.