Shippers have more choices of carriers than ever before, but they need to approach "optionality" with care, says Cris Lauer, account executive with Enveyo.

To offset the market power wielded by parcel giants FedEx, UPS and the U.S. Postal Service, shippers need to explore alternative services. Diversification mitigates risk and, in the end, provides better service, Lauer says.

There are plenty of players from which to choose. “There are so many regional carriers coming out of the woodwork,” says Lauer, offering lower cost as well as excellent service. Their goal is “to get their name out there and gain more market share,” he says. “It’s pretty exciting.”

Take care when selecting an alternative carrier, he says. It’s important that a carrier of choice possess the right data infrastructure.  “Evaluate what they bring to the table. Rum some sort of analysis. Then you’ll be able to make an informed decision.”

An automated system is crucial today to making the right evaluation when it comes to shifting volume between carriers. Lauer says shippers should develop a flexible but controlled network, with the ability to employ various checks and balances. “Keep an eye on volume thresholds and surcharges from each carrier so they you can turn on and turn off as needed.” That’s an especially valuable capability in markets with seasonal peaks.

“All parties need to be talking to each other at all times,” Lauer says.