Parcel carriers have implemented a number of surchares and general rate increases due to COVID-19 and peak season – don't miss them!
Cosmetic and Beauty Manufacturer Partners with GMT for $3M+ in RFP Savings
When a large cosmetic and beauty manufacturer partnered with GMT during a parcel carrier RFP evaluation, the partnership yielded $3.5M in savings.
When it is most clear that your brand and parcel network would be better served through the means of a RFP, we know better than most that there are five critical components to a positive and rewarding RFP outcome.
Before bidding out volume to a regional carrier, certain characteristics of the supply chain should be evaluated. Here, we’ll highlight five specific characteristics or network components that should be considered before selecting a regional carrier.
Novel coronavirus (COVID-19) has impacted the global supply chain, disrupting industries around the world. Just like their customers, carriers are not immune to the negative impacts of COVID-19.
Peak season surcharges began in 2017 as a way for carriers to mitigate some of the costs during the heavy shipping season. Packages that require extra handling (i.e. additional handling, large package/oversize, and over maximum limits/unauthorized package) that get pushed into the carriers’ network create less efficiency; therefore, carriers seem to penalize shippers even more during the holiday season.
An efficient supply chain is one that meets customer expectations in a cost-effective manner. With two-day delivery (or less) becoming the retail standard for customers, balancing cost and customer service is no small feat.
Parcel auditing is a necessary task for shippers in today’s rapidly growing parcel market. Without an accurate auditing system, shippers stand to lose a significant amount of money due to billing errors as well as the valuable data created by the audit.
Your customers are expecting faster and faster delivery times each year, all while you are trying to cut costs. Adding a distribution center (DC) will most likely decrease your average distance to your customers. However, to make adding a DC a profitable venture, you will need to leverage your data.
With another freight payment provider filing for bankruptcy, it is a useful time for shippers to take a closer look at the way they utilize payment vendors and how those vendors facilitate transactions. IPS Worldwide LLC has sought bankruptcy protection on liabilities north of $100 million to address “creditors becoming antsy,” according to the representing bankruptcy lawyer. Assets listed amount to only $50,000.
The tone of the UPS 4Q18 earnings call was uniformly upbeat as strong metrics were revealed one after another. Volume, revenues, earnings per share, and operating margins all went up in the fourth quarter. Comments around peak season performance were far more cheerful than last year as well.
The rapid evolution of the supply chain is being driven by consumers’ expectations for fast (and free!) shipping. How are major brands adapting? Get the latest parcel trends in this Report.
The quick fix for fast order fulfillment is using an express service, but in a world where shippers are constantly battling rising costs, that is not a sustainable option. Placing distribution centers (DCs) in the correct location can provide a long-term, sustainable option to reduce fulfillment time. Are your current DCs placed in the most optimal locations? Here are four steps in evaluating the location of distribution centers.
This is the time of year that shippers are often bracing for the blow of annual rate increases. Usually in the late third or early fourth quarter, parcel carriers will announce their annual rate and surcharge increases. With the growth in e-commerce, parcel is becoming a larger expenditure for companies. According to GMT’s 2018 Benchmark Report, 87% of shippers expect 2018 parcel rates to increase at a similar or higher pace as total transport costs year-over-year.
In the frothy battle for online customer loyalty, shipping choices and amounts charged for those choices is a highly influential front. Retailers have been grappling with this changing landscape for years as online disruption continues. Green Mountain Technology has combined the specific experience of its retail clients along with a multitude of other companies across industries in our annual Benchmark Report to understand strategies for differentiation in this dynamic space.
- 2020 Guide to COVID-19 and Peak Season Surcharges and Rate Changes
- 2021 Guide to COVID-19 Surcharges and Rate Changes
- Thank You for 4 Years of ‘Fastest’ Growth
- Peak Season is Here, but FedEx, UPS, Regional Carriers, and Even Shippers Have Their Eyes on 2021
- How COVID-19 is Affecting the Parcel Industry