It’s important to be aware of how much you’re spending on parcel shipping, and where that money is being spent. Good parcel carriers will have excellent customer service, competitive shipping rates, and reliable, on-time delivery. It’s that straight forward. Are you getting those three basic services from your current parcel carrier? You should be, if you put in a bit of work, at least. The parcel shipping market should work to your favor, and there’s no reason you should have to put up with expensive shipping rates or late deliveries. These are a few hints that it’s time to analyze your carrier portfolio to get rid of the worst ones.

Weak On-Time Delivery Performance

Being on-time is key to every supply chain. From start to finish, the parcel shipping supply chain must be prompt and precise. Shippers don’t need to be told that unreliable or late deliveries are problematic. Consumer demands are more influential than ever in today’s ecommerce shipping industry. Especially thanks to the Amazon effect, faster and on-time delivery is essential to maintaining business. Buyers can access hundreds of ecommerce retailers in a matter of seconds online, so the pressure is on for small parcel shipping companies to be timely.

Cheap shipping rates are sought after by everyone in the parcel shipping industry, and it shouldn’t be the case that you get what you pay for. Ecommerce businesses shouldn’t have to pay exorbitant shipping rates to get quality carrier service. The goal is to get cheap shipping rates and quality service, and if you have a good relationship with your carrier, and know how to negotiate, this should be an achievable goal. Don’t just accept carriers who can’t deliver on-time.

Expensive Shipping Rates

Both the parcel shipping company and the carrier want to have reliable business partners. Good partnerships are formed when this happens, because both service and cost matter. Supply chain management is about balancing the two. How parcel shipping companies approach carriers determines if they’ll be able to keep quality service levels at good rates.

You need to be confident and knowledgeable. Parcel carriers like partners who know the market and the product their selling. The better your business, the more reliable your business is to the carrier. Parcel carriers want to work with ecommerce businesses that will use their services frequently. Having a well-prepared bid will mean a lot to carriers and it will be able to get you better and cheap shipping rates. You don’t have to settle for high priced shipping rates.

A Lack of Shipping Technology

In today’s parcel shipping industry, there is a lot to keep track of. Shipping software is important to use. Transportation management systems are good to use, and so is parcel auditing software. While parcel auditing and TMS are extremely beneficial for your logistics management, at the very least, your parcel carrier should have some shipping technology.

Carriers should provide access to data and real-time tracking information on your shipments. This should also provide real-time delivery confirmation notices to help you monitor their performance. While carriers aren’t going to provide software for parcel auditing services, they should provide technology to help you with supply chain management. Poor carrier performance has too great an impact on your logistics spend, which directly influences your profits. Don’t settle for carriers who don’t provide technology to help you monitor their performance.

 

Parcel shipping companies should be using transportation management systems and parcel auditing services to monitor their supply chain and their logistics spend, but even beyond the significant savings to be found with parcel auditing, cheap shipping rates depend a great deal on interactions with your carrier. If your parcel shipping is suffering from weak on-time delivery, expensive shipping rates, or a lack of shipping technology, maybe it’s time to find a new carrier. Your parcel shipping supply chain shouldn’t suffer from poor carrier performance, make sure your partners are helping to improve your supply chain.

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