Shipping products to and from destinations can be quite an expensive service, but it doesn’t always have to be. There are many elements, beyond just volume discounts, that contribute to cost savings when it comes to shipping goods to their final destination.
Elements to consider…
- Volumetric weight
- Consolidation of parcels to the same destination
- Rate shopping amongst various pre-approved carriers
These are all factors that play a key role in shipping cost savings.
Declaring the accurate weight of a parcel is key, and ensuring that the virtual weight, calculated by the dimensions of the outer shipping carton that is being used, does not exceed the net weight of the package. In some cases, outer boxes may require cutting down in order to ensure that excess weight charges beyond the net weight do not apply.
Consolidation is another key factor. A major cost savings requires working with the carriers to ensure that multiple parcels destined to different individuals at the same address are consolidated and sent as one shipment, rather than multiple shipments.
Rate shopping is probably the most effective cost savings available when processing shipments. It is a fact that not all carriers are efficient at all weight categories of shipments, nor are they competitive in every region of the country. For example, “carrier A” may have a very competitive rate for Eastern Canada, but has a very weak infrastructure for Western Canada, resulting in a much higher pricing structure than another carrier who has a strong infrastructure in that region. It is important to shop each shipment amongst as many pre-approved carriers as possible, to ensure that the least expensive option is used at all times, shipment by shipment and not project by project.
Carriers appreciate working with customers who rate shop and favor them when it comes to contract negotiations because this method helps feed volume into the profile where the given carrier makes higher margins and removes the shipments with which they struggle.
At 3DM, we have the technology in place to combine all of the above methodologies in order to maximize the savings on transport costs, which are often the largest components of a campaign. It is important to note that rate shopping is only effective if there are negotiated rates amongst several carriers and not just one. 3DM currently has negotiated rates with: CanPar, UPS, FedEx, Canada Post and ATS.