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Articles & Tips

3 Tips to Get Your Business Ready for the Holidays

10/30/2020

 
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The holiday season is right around the corner, which means businesses across the U.S. are gearing up for the busiest and most competitive time of the year. For many of those who have experienced financial losses during the COVID-19 pandemic throughout 2020, the holiday season could potentially land your business a good chunk of revenue. But it's crucial that you play your cards right to keep your holiday gains from turning into holiday losses.

That said, here are a few tips you can use to help get your business ready for the upcoming holiday season so you don't find your business falling behind in the rush.


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Soon FedEx won't require boxes and labels when you make some returns

10/21/2020

 
View Original Article on CNN Business
New York (CNN Business)Soon, you may not need a label or a box when you're trying to return something at FedEx.
The company is working with Happy Returns, an e-commerce return technology company. Customers will be able to return products in person — without a box or label — for an immediate refund or exchange from participating retailers.
At the FedEx hubs, returns are sorted by retailer, prepared for resale and shipped in bulk back to the retailer that sold them originally. Refunds and exchanges will be initiated by the retailer at the time of drop off.

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And Now For Something Completely Different..

10/14/2020

 
UPS eliminates non-profitable volume to make way for high margin packages, while also preparing to move COVID Vaccine.
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We all have seen the shift from the major carriers trying to deal with capacity constraints and the residential surge. In addition, the onslaught of Peak surcharges and rate increases would make any shipper’s head spin. News of carriers going out to long time customers, both Commercial and Residential, delivering an ultimatum dictating volume limits, time constraints, and increased rates are becoming more commonplace.
One has to ask themselves the fundamental question…why? Well the short version is that each customer is being looked at under the profitability microscope. If they pass, then all is well. If not, then let the adjustments begin.  

UPS is trying to clear out non-profitable packages in the network to make way for high margin pharmaceutical packages, such as a potential COVID vaccine. UPS has been investing in the Bio/Pharma segment for years and clearly has continued to target resources to do so. Additional Capital Expenditures in acquiring refrigerated trailers and containers remains a priority. Let us not forget building facilities, such as the one in the Netherlands to expedite worldwide distribution of both pharma and a possible COVID vaccine.

Teamsters Canada/UPS Negotiation Update 
Customers who ship to, have operations in or who are simply thinking of expanding their market to our neighbors to the North need to be aware of the latest updates in Teamster Canada negotiations with UPS. 
As of last update (September 11, 2020) there was a 97.1% “in favor of strike action” agreed to by the members of the local Teamsters.

Negotiations have lasted longer than most heavyweight fights. According to Teamsters Canada officials, a “last best and final” Round #7 offer was presented by UPS on September 19, 2020. Voting has been taking place over the past few weeks. AFMS will continue to monitor for the results. Updates are also available by visiting teamsters.ca/UPS
Warning flags abound. 2021 will be the most challenging time for shippers to figure out how all this works and negotiate on their own. Keep in mind that UPS has not announced their 2021 general rate increase.  
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As always, these changes will affect each company differently.  Let AFMS help you sort out the changes and how they will impact your business. Contact AFMS for a detailed analysis or consultation or call 800-246-3521.  


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Holiday Shipping Will Be Wild This Year. That’s Good News for FedEx and UPS Stock.

10/8/2020

 
The Grinch couldn’t steal Christmas, and neither could Covid-19. But it is moving more shopping online and that’s good news for shipping companies.
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GSR Waivers: Are the Ghosts of Your Missing Parcels Haunting You?

10/6/2020

 
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Halloween is right around the corner, but it isn't werewolves and vampires your business needs to be scared of. It's the ghosts of your missing packages and the refunds your business has been forced to make on behalf of those packages.

Not all Ground and Express packages are delivered on-time despite carrier guarantees. In fact, if a package arrives late or goes missing, there may not even be any recourse with the carrier. Instead, you're stuck with a complaint from your customers that could impact your bottom line and a loss of revenue by refunding the client's shipping costs.

But how does this incident end up happening and what keeps your carrier from being held accountable for their lateness? It turns out, it could be your parcel shipping contract.

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Traders Are Backing Transports After FedEX and UPS Q3 Results

10/1/2020

 
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Due to many Americans staying home during the COVID-19 pandemic to reduce the risk of spreading the virus, the e-commerce industry has seen an uptick in business. According to CNBC, FedEx and UPS have seen their best quarter in decades, and traders are expected to back them.

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FedEx Announces Higher Rates in 2021

9/24/2020

 
  • “New Normal” includes Freight and Accessorial Increases 4.9%-9.5%
  • FedEx Introduces 6% late payment fee
  • “Frozen Tiers” to end October 2020
  • Learn how to mitigate these new increases, See below
​FedEx announced their 2021 General Rate Increase on Monday evening, September 14th. Overall, FedEx Ground Home Delivery, Express and International rates, will increase an average of 4.9%. Accessorials, fees and surcharges will see an increase of 4.9% -9.5%. While base freight rates mirror last year’s rate increase of 4.9%, Accessorial fees and surcharges will continue to add to the carrier’s bottom line. Although SmartPost and Ground Multi-Weight service increases have yet to be posted, suffice to say they are on their way. 

Given the recent rounds of Peak charges introduced over the past few months, 2021 Rate increases should be of no surprise. Due to the ecommerce explosion, rising costs, capacity and yield management concerns, carriers have went on the “offensive”. If you were fortunate enough to have your revenue tiers temporarily “frozen” due to COVID, FedEx will be thawing them out in mid-October. If all of these changes are not enough to digest, you will also want to make sure you pay your bill on time or else you will receive a 6% late payment fee, courtesy of FedEx. 

Keep in mind that these increases are only “service level” averages, while fees and surcharges will incur entirely different increases. Each company’s impact is uniquely dependent on a variety of factors. Let AFMS help you sort out the changes and how they will affect your business.

To get down to the details of this increase AFMS has prepared an expert analysis that you can find here.

3 Ways Your Business Can Save Money on Shipping Costs

9/14/2020

 
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Many companies too preoccupied with the key factors of their business to pay close attention to their shipping. This is especially true of small businesses, which rely on a smaller workforce and may not have the time or resources to sit down and go through their parcel shipping contracts line by line.

However, if you're not paying attention to your shipping at all, then you may find yourself losing more money than you think. That said, how can your business save money on shipping costs over time without sweating the details? Here are three ways you can save some serious money.

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RFI and RFP: What's the Difference?

9/8/2020

 
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When it comes to parcel contract auditing and parcel contract optimization, there are a few key terms you ought to know: RFI and RFP. RFI and RFP stand for refund for information (RFI) and request for proposal (RFP). Both differ from request for quotation (RFQ).

RFI and RFP each serve different purposes throughout the procurement process, but both are used to obtain important information. The more you know about these RFx documents, the more you can do as a business to improve your position when it comes to shipping and your shipping contract. Both RFI and RFP are instrumental in cost savings, risk mitigation, and process standardization.

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The Future of USPS and What It Could Mean for FedEx

8/11/2020

 
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The U.S. Postal Service has been hit hard by the COVID-19 pandemic, suffering a $4.5 billion net loss in its most recently reported quarter. After decades of operating without taxpayer subsidy, the public service received no rescue funding since the beginning of the COVID-19 crisis. To stay afloat, the USPS has been prohibiting overtime and cutting transportation costs.

Many small businesses and entrepreneurs rely on the USPS to make shipments. This is especially true of international entrepreneurs who may otherwise have to pay substantial shipping costs that are more expensive than the item being shipped. An end to the USPS could not only mean a significant loss to small businesses but also a shift toward larger carriers like FedEx.

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