Compared to traditional retail companies, e-commerce businesses typically employ small parcel providers. But it's important to consider your options as your business grows to determine whether using multiple carriers or using a single carrier is in your best interest.
Know what your business needs
Multiple carriers aren't for everyone, and the volume of your shipments isn't always enough to consider making the switch away from a single-carrier arrangement. A regional carrier may be all your business needs if it's the most efficient strategy for your shipments and if your company's service level is your top priority. Regional carriers are typically best for when your shipments are concentrated in a single geographic location. Their rates and other fees may also be more competitive compared to national carriers.
However, it may be worth considering national carriers if your business begins to see the following:
- A dramatic increase in orders
- A surge in business in other geographic locations
- Increasing problems with your regional carrier
Have professionals conduct a parcel audit
When your business is comparing rates and determining whether using multiple or single carriers is best, it can be helpful to understand how your shipping rates are determined with your current carrier. Professional parcel pricing experts can conduct an audit on your current parcel contract and shipping history to determine if you've been paying for late deliveries, returns, or overcharges.
From there, you can get a more accurate idea of what your business would be paying your carrier after parcel contract optimization is conducted. This gives you the ability to compare shipping carriers, rates, and methods more accurately when choosing whether to use multiple carriers or switching to a new regional carrier.
If your business needs assistance with parcel contract optimization, parcel shipping contract benchmarking, or contract auditing, AFMS has you covered. For more information on our services, contact AFMS today.