What is Causing Your Parcel Spend to Exceed Budget?

The last two years have been very challenging for shippers attempting to control shipping costs and protecting their profit margins. 

 Every year parcel carriers notify you about increases to base rates and surcharges, while according to National Retail Federation study, 75% consumers are expecting you to provide “FREE” shipping even on orders under $50. 

 How do you find a balance between the two while still remaining profitable?

 In a recent survey, shippers were asked, if they know what is driving their parcel shipping costs? 

The results showed:

54% - Are closely monitoring and controlling their shipping costs

32% - Knows total dollars spent / But does not know what is driving their shipping costs

14% - Needs visibility of their shipping costs and assistance with how to control it.

 Here are a just a few examples of some areas that have controllable cost controls that we have assisted our clients with, so that they can manage their increasing transportation costs. 

 Address Corrections – There are address validation solutions and analytics to control these unnecessary costs.(For 2023 - UPS $19.50/per package FedEx $21.00/per package.)

 Air/Ground Substitutions – On average ground is delivered 2-3 days and on-time performance of mid-high 90% range. There are ways to fully leverage carrier networks and on-time performance to control costs.

 Shipping Charge Corrections – Occurs when weight and size of the package is different than what was indicated at the time of shipping and it could also trigger a shipping charge correction fee.

Residential / Delivery Area / Additional Handling Surcharges  There are solutions to control and reduce these surcharges which benefits both shipper and carrier, while improving overall customer experience. 

Carrier Pricing Agreements – Slowing demand and carrier overcapacity is now allowing shippers options to customize and renegotiate their carrier agreements. Many of our clients have benefitted by having visibility of their accessorial charges and package statistics. Which in turn assisted both them and their carrier in creating the right custom agreement for them.

Are there areas driving your shipping costs, that you would like more insight and visibility of?

 Are you looking to renegotiate your carrier agreement(s)? 

 Whichever category in the survey you identify with, ShipMatrix can assist you.

You can schedule a complimentary discovery call to see if ShipMatrix can help you.

Cookie Consent with Real Cookie Banner