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Home » Watch: The Benefits of a Multi-Carrier Strategy for Parcel Shippers

Watch: The Benefits of a Multi-Carrier Strategy for Parcel Shippers

October 13, 2023
Robert J. Bowman, SupplyChainBrain

These days, parcel shippers have more options than ever before in choosing the right carrier, and they should take full advantage of the opportunity, says Rob Glover, vice president sales with OSM Worldwide.

A range of new options are available today to shippers who desire to adopt a multi-carrier strategy. New providers, including a number of regional carriers with national aspirations, entered the freight market during the surge in demand that was triggered by the COVID-19 pandemic. They have laid the groundwork for shippers looking to control freight costs and lessen their dependence on a handful of dominant national carriers. In the process of doing so, however, shippers need to balance requirements for speed of delivery with the cost of service.

Retailers attempting to grow their business are looking to a multi-carrier strategy to ensure the delivery of packages by the optimum method, speed and cost. The model “can help an e-commerce shipper look at the options that are available,” says Glover.

The opportunity is further supported by the realization that no single carrier can do everything well. Differing service levels are required for national, regional and “hyperlocal” services. As a result, most newcomers to the market are placing less of an emphasis “on bundling everything with one carrier,” Glover says — despite the advantages that accrue to shippers who show loyalty to one service provider.

The multi-carrier strategy is of particular value during peak seasons, when established carriers might be limiting the amount of business they accept from given customers, or impose seasonal surcharges that can greatly affect the cost of shipping.

Glover recommends that shippers pay attention to the size of packages, and ensure that they are appropriate for the contents, so as to avoid unnecessary dimensional charges. Second, “focus your time on looking at what contracts you’re using, to make sure you’re giving the right packages to the right carriers.”

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