What is parcel shipping? Parcel shipping refers to small package shipments and due to hidden fees and complex processes, they are usually left with limited visibility of overall freight spend. Millennium Logistics Management provides us with 3 steps for saving on parcel shipments:
Due to the rapid growth of online retail, E-commerce is changing parcel shipping and delivery drastically. This growth will continue to increase over time because of convenient shopping, shipping and delivery options, which means parcel shipping will continue to grow in popularity as well. That is why it is important to take steps now to save today and in the future!
Did you know that parcel carriers apply accessorial fees and surcharges to a package’s total landed cost? That’s right, in fact, over 30 percent of a carrier’s invoice consists of additional accessorial fees or surcharges.
Accessorial fees are extra items or services needed to ensure delivery and some of these can include shrink wrapping, layovers, storage and/or after hour deliveries. Surcharges are very similar; this fee is applied to transportation services on top of the total cost and these can include seasonal charges, fuel and/or dimensional weight.
With all the rapid growth in deliveries, it is anticipated that carriers are expected to experience a rate increase of 2 to 3 percent in this year alone! Paying more is going to be inevitable therefore what are the steps that will help shippers avoid extra fees and save on costs? Let’s review those steps below:
Shippers, take control of your transportation spend now by analyzing spend, diversifying carriers and changing optimizing operations! Also, remember that when partnering with a logistics expert (such as Millennium Logistics Management) you are able to measure performance, discover correctable shipping mistakes, gain shipment visibility and identify transportation solutions. We formulate a customized solution for your unique needs! For more information, please contact Millennium Logistics Management.
Have you ever wondered about how the product you buy from a store ended up there? The complexities of […]
If you have never worked with a freight broker or are considering working with a freight broker. Here is […]
Supply Chain Visibility refers to understanding what goes on between the start and end of a process. With supply […]
In order to keep up with the evolving customer expectations and high volume of deliveries, these three innovations in […]
Collisions are impossible to predict, and when they happen, they can cost your company millions. To combat this, you’ll […]
When materials and components routinely cross thousands of miles in their supply chain, it seems implausible that the last tiny […]
Supply chain disruptions are not a problem isolated to a few unlucky companies – every business that uses a supply chain […]
If your business can not afford to hire a 4PL company like Millennium Logistics to create an effective and efficient […]
Implementing a 4PL freight management system can bring clients many benefits including access to a uniform process via a transportation […]