• Negotiate with multiple carriers. All shipping companies have pricing schedules based on volume: The more you ship, the lower your rate. But small businesses often don’t realize they also may have negotiating power, if you ship large numbers of packages, compare prices, and try to persuade carriers to offer lower rates. If Fed Ex knows UPS is vying for your business, you’ve got something to negotiate.
  • Use packaging provided by your carrier. Consider a regional carrier. Such carriers often provide the same services as FedEx or UPS at a reduced cost. Regional carriers include Speed-Dee Delivery Service in the Midwest, OnTrac in the West and LoneStar Delivery & Process in Texas. But keep in mind their delivery networks are limited. You also might reduce your bargaining power if you spread your business among too many carriers.
  • Buy insurance from a third party. While carriers charge about 80 cents for every $100 of insurance, third-party companies like Parcel Insurance Plan and U-PIC Shipping Insurance charge about 45 cents. The savings can add up, Mitchell notes, if you frequently ship expensive items.
  • Factor in all shipping fees before billing customers. Carriers have more than 75 special charges, including fuel surcharges, fees when requiring a signature from the recipient, or Saturday delivery fees. If your customers pay for shipping, be sure to include all these extra costs in their bills so you don’t end up absorbing them yourself.
  • Consider hybrid services. While they have certain volume, weight and size restrictions, hybrid services like SurePost by UPS and SmartPost by FedEx can cost half as much as standard UPS and FedEx delivery options. These services pick up packages at your business and ship them by UPS or FedEx to the post office closest to the destination. The local mailman then makes the final delivery. While the cost is less, this extra step can slow delivery.
  • Ask about association pricing where professionals like Lawyers, Accountants, Realtors, and Director receive member discounts. FedEx and UPS give discounts up to 50 % based on Org, size.
  • Buy insurance from a third party. Parcel Insurance Plan and U-PIC Shipping Insurance charge about 50 cents where carriers charge as much as 90 cents per hundred dollars.
  • Use automation to reweigh all your packages, most invoice adjustments are not billed to customers.
  • Invest in a Cube Machine to ensure packages are dimmed and customers billed properly.
  • If you’re not using a regional carrier explore the option they can improve service and reduce costs.
  • Delivery Area Surcharge fees affect over 30,000 ZIP codes or about 35% of the U.S population
  • Know your characteristics they’re used to determine discounts and carrier profitability models.
  • Learn the value of your business to the carriers; try to determine how they perceive your business.
  • Investigate third party shipping systems. Business rules and rate shopping will get you a fast ROI.
  • Carriers offer prepaid shipping options with unlimited weight and no accessorial fees.
  • Reduce dim-weight costs by redesign packaging and consolidating as many pieces as possible.
  • Get carrier management reports to learn about your shipment details and freight characteristics.
  • Learn service Mode Optimization and know when to use ground vs. priority or less expensive service
  • Be sure you have a routing guide in place and be sure it is shared with all departments that may ship.
  • Know where to find hidden shipping costs, There are now over 80 different accessorial fees.
  • Be sure you have a routing guide in place and be sure it is shared with all departments that may ship.
  • Know where to find hidden shipping costs, There are now over 80 different accessorial fees.
  • Bad addresses can be corrected at a cost of $12.50 for Ground and $10.00 for Air shipments.
  • Audit or hire a service to insure proper rating and capture service refunds on shipments that are late.
  • Understand when to use small package services verses LTL, or Freight Services.
  • Inspect your use of insurance; people insure everything, even though the first $100 dollars is free.
  • Watch your contract, the revenue incentive plan before you realize a loss or % of your discounts.
  • Investigate using USPS, There are fewer accessorial fees and service has improved.
  • Accessorial fees are 35% of small package spends, Try to reduce and be sure you charge customers.
  • Electronic pre-sortation ROI is eminent and quicker than you realize.
  • Hire a consultant to appraise your contract or perhaps help you negotiate a new one.
  • Do it yourself or hire a third party freight bill auditing firm to ensure rates and fees match your contract.
  • Set up vendor routing guides or use purchase orders with routings already chosen.
  • Integrate with carriers and automate billing, If you help them reduce costs they will help you.
  • Use Residential Delivery Indicator Software during your order entry to identify residential deliveries
  • Proof of delivery is often not needed, Work with your carrier to determine when to use it.