Common carriers like FedEx and UPS represent globally recognized and trusted names, but their global footprint can be a disadvantage to shippers needing a niche transportation option. Regional shippers are becoming more attractive as businesses look to cut costs and tighten delivery windows. A regional shipper will focus on specific geographic regions, offer more personable service, advanced flexibility and various cost reduction options. Let’s discuss three reasons why shippers are choosing regional carriers to supplement their UPS or FedEx service.
Regional carriers are more apt to welcome special requests and respond quickly. Same-day delivery is a must as e-commerce retailers extend faster delivery options to customers. Regional carriers offer services to ship packages in the same-day delivery window and will pick up the package within an hour of being notified. Because of the targeted delivery area, regional carriers can market faster time in transit and often at a lower price than FedEx or UPS.
When it comes to negotiation with UPS and FedEx, working with a regional carrier can give you a slight upper hand. When you vary your logistics providers it gives you a competitive advantage in the negotiation process. Not only will it help during contract negotiation time, but regional carriers help save money instantly. The big-name carriers have dozens of accessorial fees, surcharges and minimums tacked onto shipments that are significantly lowered when using regional carriers in your logistics operations. If you ship regularly you know the stress of the dimensional weight charges, but with most regional carriers they offer a better dim divisor – 166 compared to 139 that FedEx and UPS enforce. The lower dim costs alone would accrue quite the dollar amount in savings.
Learn more: The rise of dimensional weight
If you are using one carrier it’s difficult to compare the quality of service you are receiving. Regional carriers are usually more agile when handling special shipping requests by being able to extend pickup windows for customers later into the evening and retrieve packages on Friday to be delivered on Saturday. Because there are fewer hands on your packages, this means less lost and damaged shipments to hassle with and the smaller shipping area guarantees better on-time delivery.
Using regional carriers to complement your global carriers can offer valuable long-term advantages. If you are considering diversifying your carrier portfolio, think about optimizing your carrier contract too. Taking the time to investigate the best shipping solutions for your business will help save more money. Share a Refund Carrier Agreement Optimization service will either save you money or guarantee you have the best possible contract. It’s a win-win. If you want to increase profits press here to signup for Share a Refund Carrier Agreement Optimization.