Discover how to tackle rising shipping costs with tactical strategies via shipping software
2024 is here, and with it comes the threat of General Rate Increases (GRIs) looming large for companies across retail, manufacturing, 3PL and so much more. While headline increases of 5.9% from both UPS and FedEx might appear manageable, the full financial impact lies beneath the surface. Rate caps, often relied upon as a buffer for shippers, offer limited protection. The true cost implications are revealed through a complex web of factors: accessorial charges exceeding 5.9% increases (with some spiking as high as 20%), unpredictable fuel fluctuations and carrier-specific adjustments.
This dynamic landscape requires a proactive approach. Strategies such as embracing data-driven decision-making, streamlining operations with automation, and tactical negotiations and partnerships become crucial tools for conquering rising shipping costs.
However, these strategies are only achievable with a foundation of advanced supply chain technology, particularly multi-carrier shipping software. This shipping solution is the engine driving these cost-cutting strategies and resilience solutions.
Read on to learn more about these strategies that present a roadmap for navigating the evolving parcel landscape, empowering you to establish a cost-effective supply chain in 2024 and beyond.
Embrace Data-Driven Decisions
Conquer rising costs and navigate the complex parcel landscape in 2024 with the first practical strategy: data-driven decisions powered by multi-carrier shipping software (MCSS). This dynamic approach goes beyond guesswork, equipping you with real-time insights to optimize your supply chain strategies and slash costs.
Conquer rising shipping costs with intelligent insights:
- Ditch the one-size-fits-all approach: Multi-carrier shipping software unlocks real-time data on rates, routes, and carrier performance. This empowers you to tailor shipping strategies for each package, optimizing costs and transit times.
- Unlock hidden savings: Explore advanced tactics like zone skipping to bypass expensive zones and leverage competitive rates across vast carrier networks. These data-driven strategies often unlock significant cost reductions.
- Empower your team: Equip your team with real-time information and actionable insights. Negotiate with confidence, resolve customer inquiries faster, and minimize manual errors through automated processes. Data-driven decisions empower your team to excel in a dynamic shipping landscape.
When embracing data-driven decisions, it’s not just about numbers – it’s about gaining control, making informed choices, and steering your supply chain towards efficiency and profitability.
Streamline with Automation
Rising costs, frustrated customers, and overworked teams are no longer acceptable realities in 2024’s shipping landscape. Embrace automation, the strategy that slashes costs, optimizes efficiency, and empowers your team to conquer even the most demanding shipping challenges.
Here’s how automation clears the path to cost-cutting success:
- Streamlined compliance & lower risks: Multi-carrier shipping software automates label and documentation generation, reducing manual errors and ensuring carrier compliance to avoid costly chargebacks. But that’s not all! Shipping software also automatically keeps track of ever-changing carrier GRIs and surcharges, meaning you’re always charged the right price, every time. No more surprises, no more scrambling to update rates manually, and no more dreaded chargebacks that eat into your profits. This not only speeds up order confirmations and boosts customer satisfaction, but it also delivers real, quantifiable cost savings that go straight to your bottom line.
- Advanced decisions, optimized savings: Leverage Rate Shopping to secure the most competitive rates, with many companies saving nearly 30% on shipping costs per year. Advanced Date Shopping assigns shipments to the most efficient carriers based on real-time conditions from 9 detailed shipping data sets, further maximizing savings.
- Automation frees up resources: Let your shipping software handle routine tasks like barcode printing and compliance checks. This frees up your valuable staff to focus on strategic cost-saving initiatives like negotiating with carriers or optimizing routes, driving continuous improvement in your supply chain.
Automation is not just about convenience – it’s about finding definitive cost savings with advancements in technology or workflows. Empower your team and your bottom line with the power of data-driven shipping decisions and leaner operations. Embrace automation – it’s your key to a profitable and streamlined shipping future.
Strategic Negotiation & Partnerships
While data-driven decisions and automation equip you with powerful tools, there is a third tactic that goes hand-in-hand: strategic negotiation and partnerships.
Harness your collective power to:
- Negotiate like a pro: Leverage your high shipping volume to unlock exclusive discounts and incentives directly with major carriers. Think bulk discounts, priority lanes, and customized solutions tailored to your unique needs. Utilize carrier volume balancing, an automated business rule carried out by multi-carrier shipping software, to ensure you meet your minimum volume requirements while maintaining your discount to keep transportation spend in check.
- Beyond the giants: Don’t limit your carrier portfolio. Explore partnerships with regional or specialized carrier providers who offer competitive rates and niche expertise, like temperature-controlled shipments for healthcare or last-mile delivery solutions for retail. Ensure that your multi-carrier shipping solution has a broad carrier library and can offer these services to avoid delays and excess onboarding fees.
- Embrace the 3PL advantage: Partner with experienced 3PLs to leverage their vast carrier networks, pre-negotiated rates, and expertise in optimizing multi-carrier shipping strategies. 3PLs can be your one-stop shop for cost-effective and efficient shipping solutions.
Remember, strategic negotiation and partnerships are not one-size-fits-all. Customize your approach based on your industry, shipping volume, and specific needs.
ProShip: Your Partner in Shipping Success
Conquering the 2024 parcel shipping ecosystem takes more than just tools – it requires a trusted partner by your side. ProShip isn’t just any multi-carrier shipping software, we are your partner in a world of rising costs, complex challenges, and versioned, inflexible shipping solutions.
- Unbreakable Reliability: Resilience and control are some of the most valuable assets in the volatile and high-stakes world of parcel shipping. ProShip empowers you with complete ownership of your shipping experience, unlike other solutions that rely on fragile third-party integrations.
- Engineered for Speed: Don’t let slow software drag down your efficiency. ProShip’s platform carrier engines are designed for enterprise-level parcel throughput and operate at lightning-fast speeds, eliminating middleman delays and ensuring peak performance even during high volumes.
- Seamless Updates: Say goodbye to disruptive downtime and costly upgrade fees. ProShip’s versionless solution incorporates seamless automatic updates, ensuring your shipping strategy is always at the cutting edge without ever interrupting your workflow.
- Compliance Confidence: Rest assured knowing your shipments are always compliant. ProShip’s deep carrier relationships and industry-leading certifications guarantee 24/7 compatibility and peace of mind.
The ProShip shipping solution isn’t just industry-leading features, it’s also a dedicated team of IT and supply chain experts to support you every step of the way, providing insightful guidance and personalized solutions to conquer shipping challenges and achieve your goals.
Don’t just survive, thrive in 2024. Take control of your shipping costs, optimize your efficiency, and elevate your customer experience with ProShip as your partner. Want to learn more about why parcel professionals choose ProShip multi-carrier shipping software to power their high-volume enterprise shipping operations? Read more in our detailed Top 3 Reasons White Paper.
Ready to conquer your shipping challenges? Connect with our experts to discuss your specific needs and discover how ProShip can tailor a solution for your success.