Executive Briefings

Should Your Transportation Strategy Include a Regional Parcel Carrier?

Regional parcel carriers can fill an important market niche for many shippers, says Mark Magill, director of business development at OnTrac. By specializing in next-day deliveries within specific and often large geographic regions, these carriers can offer greater flexibility, faster transit and lower rates, he says.

Any shippers interested in reducing supply chain costs should look at adding a regional parcel carrier to their mix of transportation service providers, says Magill.

Because regional parcel carriers don't have the infrastructure costs associated with a national network, they often can provide faster transit times at lower costs than the big nationwide carriers, he says. Moreover, they are more flexible, offering later pickup times." A national carrier may make a final pickup at 5:00 p.m., but a regional carrier could come in at 7:00 p.m., which helps companies' improve productivity," he says.

Service areas can be quite large for next-day delivery, allowing companies to pay ground rates for shipments that previously had to be shipped express, Magill says. This also appeals to "generation Y" consumers, who want immediate service but are not willing to pay a premium.

Shippers interested in exploring regional parcel service should contact a regional parcel carrier serving their area and ask for referrals, especially in the same or similar industries, says Magill.

The next step should be for shippers to provide potential carriers with a detailed shipping sample, especially a list of five-digit zip codes to which they deliver, he says. "This information will allow the carrier to give them a more aggressive rate structure."

OnTrac serves eight Western states.

To view video in its entirety, click here


Keywords: supply chain, supply chain management, global logistics, transportation management, logistics management, logistics & supply chain, logistics services, supply chain solutions, warehouse management systems, transportation management systems, retail supply chain

Any shippers interested in reducing supply chain costs should look at adding a regional parcel carrier to their mix of transportation service providers, says Magill.

Because regional parcel carriers don't have the infrastructure costs associated with a national network, they often can provide faster transit times at lower costs than the big nationwide carriers, he says. Moreover, they are more flexible, offering later pickup times." A national carrier may make a final pickup at 5:00 p.m., but a regional carrier could come in at 7:00 p.m., which helps companies' improve productivity," he says.

Service areas can be quite large for next-day delivery, allowing companies to pay ground rates for shipments that previously had to be shipped express, Magill says. This also appeals to "generation Y" consumers, who want immediate service but are not willing to pay a premium.

Shippers interested in exploring regional parcel service should contact a regional parcel carrier serving their area and ask for referrals, especially in the same or similar industries, says Magill.

The next step should be for shippers to provide potential carriers with a detailed shipping sample, especially a list of five-digit zip codes to which they deliver, he says. "This information will allow the carrier to give them a more aggressive rate structure."

OnTrac serves eight Western states.

To view video in its entirety, click here


Keywords: supply chain, supply chain management, global logistics, transportation management, logistics management, logistics & supply chain, logistics services, supply chain solutions, warehouse management systems, transportation management systems, retail supply chain