For shippers, providing your customers with a fast and high-quality delivery experience is one of the most crucial components to business success. Not only does it encourage repeat purchases, but it also fosters company loyalty and even brand advocacy, ultimately bringing in new customers. However, customers increasingly expect two-day or even next-day shipping when they order products online, and the often steep prices of these delivery speeds can be an expensive barrier for many businesses.
As worldwide e-commerce sales are expected to boom to an estimated $5 trillion this year, the high demand and costly shipping rates will continue to be a heavy burden for companies that lack a robust omni-channel distribution strategy. Perhaps the most significant challenge for shippers is managing transportation costs with delivery schedules. Fortunately, with the right multi-carrier parcel shipping system, it's easy to find the best shipping rates with the fastest delivery speeds to ensure your customers receive their parcel on time and at the lowest cost to your business.
What are shipping rates and how are they calculated?
Shipping rates are the direct expenses involved in shipping parcels from origin to destination. This cost is determined by a variety of factors, including obvious things like size, weight, delivery time and transportation mode. However, there are a variety of other costs associated, such as the shipping materials, labor and potential import and export fees involved with international shipping.
Calculations for shipping rates are highly complex, especially for long-distance parcel shipping. This is because the process of moving parcels through the supply chain is often complicated. Once you receive an order, you must first locate the product and determine the best shipping rates among your contracted carriers. Then you need to organize the parcel's transportation and print carrier-compliant shipping labels. These labels allow you to track the shipments from distribution centers to the last mile, ensuring a timely delivery and customer satisfaction.
Why is rate shopping critical to your bottom line?
Rate shopping is the ability to compare shipping rates between your network of contracted carriers. Whether you're looking for the cheapest transportation mode, the fastest delivery speed or a happy medium between the two, rate shopping allows you to sort through your network of contracted carriers to find the best parcel shipping option according to your business rules. This practice can illuminate savings opportunities for your business, enabling you to optimize your shipping strategy for cost-efficiency. Ultimately, this practice can save your business up to 25% on parcel shipping costs.
Despite the benefits of rate shopping, it's traditionally been a tedious, time-consuming process involving an employee manually gathering data from carrier websites. However, modern tools can streamline this process by consolidating your multi-carrier network into a single platform solution. Now you can easily switch between contracted carriers to optimize each shipment individually and consistently achieve the best shipping rates based on your business practices.
How to take advantage of the best shipping rates
As a retailer shipping parcels, it's critical to rate shop for the best prices available in the shortest amount of time. This not only benefits your customers by reducing shipping costs and expediting delivery, but it also benefits your bottom line by cutting your costs and boosting your business's operational efficiency. However, this often means managing shipping costs across a diverse network of contracted carriers, each with its own website, compliance standards and shipping rates. To optimize this process, streamline order fulfillment workflows and manage transportation spend, you need a robust multi-carrier parcel shipping system.
What is a multi-carrier parcel shipping system?
A multi-carrier parcel shipping system is a software solution that saves businesses time, money and resources throughout the entire shipping process by allowing them to rate shop between multiple contracted carriers, monitor shipping activity, track packages, streamline parcel shipping operations and automate carrier compliance. Shippers also have options when it comes to parcel delivery, whether they want to go with the cheapest, fastest or high-end option. Every day, retailers, manufacturers and logistics providers worldwide utilize multi-carrier shipping technology to ship millions of parcels at the lowest possible costs.
How does it differ from a transportation management system?
While a transportation management system (TMS) sounds like a general shipping solution, this type of software was primarily developed for planning freight movements. Shippers often choose a TMS expecting it to solve all of their shipping issues, however, the rise of e-commerce is increasing the necessity of more optimal shipping solutions. Unlike a multi-carrier system, which provides the technological infrastructure to support and optimize parcel shipping workflows, a TMS can create problems in parcel shipping, complicating critical tasks and causing shippers to overspend.
What does Logtistyx TME offer?
Logistyx TME is a cloud-based multi-carrier shipping software solution designed for any business shipping parcels. With this all-in-one solution, you can monitor parcel movements and delivery, streamline transportation processes, guarantee carrier compliance and identify opportunities for cost savings — all in a single, convenient platform. With more than 550 global carrier integrations, it's easy to expand your contracted carrier network to find the best shipping rates for your business rules. Whether you're shipping domestically or internationally, using a single carrier or a diverse network of hundreds, Logistyx TME can help you deliver the best shipping experience to your customers without sacrificing time or cost-efficiency.
After an easy, seamless integration with your business's existing systems and contracted carrier network, you're ready to start rate shopping for your next shipment. Once you've selected a service, the software prints the labels and any other documentation needed. If your business uses multiple contracted carriers, Logistyx TME will automatically communicate with the label printer for accurate labeling along the assembly line. Once a parcel is shipped, you can monitor its journey to the customer's door, ensuring a timely delivery and customer satisfaction. You can also leverage Business Intelligence to glean valuable insights into the shipping process, forecast fulfillment scenarios and identify cost-savings opportunities.
Want to learn more about how Logistyx can help your business take advantage of the best shipping rates? Contact us today.