eCommerce is blowing up the traditional lines that used to differentiate transportation modes. Increasingly, consumers are demanding free and faster delivery for more types of goods than ever before, including appliances, furniture, food, and clothing. Retailers are responding with omnichannel fulfillment and shipping strategies to reduce the cost of free shipping while staying true to their delivery promise.
If you frequently ship freight, the concept of rate shopping isn’t new to you. By using live rating functionality instead of static routing guides and annual contracts, savvy shippers can communicate regularly with their carrier network to renegotiate their rates monthly or quarterly — resulting in savings on transportation costs upwards of 15 percent.
Spurring this on is the growth of eCommerce—and the omnichannel shipping methods being adopted by many e-tailers. Globally, online purchases account for slightly over 10 percent of total retail sales, up from around 5 percent in 2012, according to the report.
Every day, shippers are faced with the growing complexity of ground options and differing service coverage areas making it difficult to select the “best” carrier for their organization’s shipping needs. This leads to them having to have a multi-carrier strategy that requires a multi-carrier software system.
Transtream users understand the value of Intelligent Rate Shopping because it ensures they meet customer expectations for delivery at the lowest cost while helping shippers provide consumers more options for carriers and service.
Consumers want cheaper and faster delivery, or else. The only way retailers can achieve both is to ship from inventory sources located closer to their customers.
Pitney Bowes’ recent Retail (R)Evolution 2019 event served up a smorgasbord of great information about eCommerce logistics, transportation, and consumer trends. Many of the takeaways suggest a shift in the way goods will be delivered in the future:
Pierbridge, Inc., the industry-leading developer of multi-carrier shipping software and part of the WiseTech Global group, is quadrupling its U.S. footprint with a move into new office space in Marlborough, Mass. The new office will accommodate Pierbridge’s rapid growth, following investment in sales, marketing, and development resources.
To keep up with consumer demands for fast and free shipping, as well as a personalized experience with premium services ranging from Sunday delivery to white glove service, retailers are shipping from an endless aisle made up of fulfillment centers, stores, 3PL warehouses, and suppliers to achieve faster delivery at reduced shipping costs. And increasingly they are using alternative delivery services, including local carriers, to do it.
This has led to a jigsaw puzzle of sorts as shippers access this expanding global network of local carrier services in a way that will enable retailers, eCommerce merchants, and 3PLs to meet rising consumer expectations.
Shipping isn’t free. At least not for shippers. For them, it’s about carefully managing transportation costs at all points in the order delivery cycle.
Even as parcel demand continues to push shipping costs up at twice the rate of inflation, consumers increasingly expect free shipping, as well as fast and on-time delivery. For eCommerce players, costs are measured in shopping cart abandonment, customer attrition, and margins. By using multi-carrier shipping APIs across the enterprise, merchants can realize the best of both worlds: customer loyalty and reduced costs.
Efficiency, leanness, cost-cutting. These are all mantras of businesses in today’s highly competitive markets. When it comes to packing shipments, these terms carry even more weight—especially when it comes to dimensional (DIM) weight rating.
Carriers use DIM weight rating to determine shipping costs based on weight, distance, and carton size, instead of just weight and distance. DIM weight is figured by multiplying the carton’s length, width, and height, and then dividing that result by a special number, called a "dimensional weight divisor," "DIM divisor," or "DIM factor." And we have seen the divisor drop steadily over the past few years. Each time carriers reduce the divisor, poorly packed cartons are more likely to yield a higher dimensional weight than being billed for the actual weight, adding costs for what amounts to shipping air.
Pierbridge has achieved certification from the British Standards Institution (BSI) for the world's most recognized quality management standard— ISO 9001:2015.
Pierbridge's achievement demonstrates not only the presence of a robust quality management system (QMS) operating across the organization but is an indicator of how committed the organization is to meeting, and wherever possible, exceeding our customers’ expectations.
Become a better parcel shipper to reduce costs, increase margins, improve customer service, and stay competitive. Stay informed on the latest trends in shipping and parcel transportation management. Delivered regularly by email and through social media.