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Managing Your Shipping Spend 1.
Carriers that charge fees with increased granularity, more demanding customers, and divergent fee methodologies have rocked a part of business that was once fairly straightforward.
But those factors have also created opportunities — particularly for those armed with intelligence tools they need to compare parcel delivery rates and navigate this new shipping frontier. So how did we get here? In most cases you could have a good idea of your shipping costs knowing nothing more than package size, distance shipped, and speed of delivery.
For instance, pretend you shipped lightweight yoga mats. When it came to fees, a three-pound yoga mat in a large box and a three-pound hard drive in a tiny box were essentially treated the same way.
Consequently, shipping companies announced they would start charging dimensional weight fees.
The goal of the fee was simply to make the cost of shipping more fair. But it also added additional complexity to calculating shipping costs — which added headaches for shippers. Though there were some grumbles of dissatisfaction with dimensional weight fees when they were introduced, the practice was mostly accepted.
After all, it was only applicable items larger than three cubic feet. Today, every package is subject to the dimensional weight rule. FedEx modified its dimensional weight divisor from to on January 2, This change initially affected only the U.
When the carrier announced its general rate increase in September, it added FedEx SmartPost to the list of service levels with the dimensional weight divisor. UPS established a dimensional weight divisor of for packages larger than 1, cubic inches or one cubic foot in size.
The weight divisor is used for all packages that are smaller than one cubic foot. But that too is a relic of a simpler, bygone time.
Incarriers diverged in their rate increases. This compounded the complexities of managing transportation. Shippers without analytical tools and personnel are at a disadvantage, thus making more complex than calculating percentage discount and minimum charge.
A shipper will find it extremely difficult to ascertain the carrier with the best rates, especially when factors such as address corrections, DAS fees, residential fees, dimensional weight factor, transportation fees, and other surcharges are considered.
Peak Shipment Surcharge A new peak surcharge fee was announced by UPS in Juneand it has been updated twice to expand its geographic reach. They also added extra charges for packages that are excessively heavy, packages going to Puerto Rico, Hawaii or Alaska, as well as packages from Hong Kong or China.Deutsche Post DHL Group (DPDHL) - the world's leading mail and logistics company.
Air New Zealand. Air New Zealand is proud to be New Zealand’s national carrier, facilitating more than 16 million customer journeys to, from and across New Zealand every year. The airline is committed to sustainably growing its business and creating positive opportunity for New Zealand - socially, environmentally and economically.
Sandra MacQuillan is Senior Vice President and Chief Supply Chain Officer for Kimberly-Clark Corporation, leading their Global Supply Chain organization with global responsibilities for Procurement, Manufacturing, Logistics, Sustainability, Safety, Quality and Regulatory.
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