Supply Chain Discussion: The Benefits of a Multi-Carrier Strategy for Parcel Shippers
These days, parcel shippers have more options than ever before in choosing the right carrier, says Rob Glover, vice president of sales with OSM Worldwide. They are a data-driven shipping and e-commerce software solution that provides tracking and visibility.
In this interview with Robert Bowman from Supplychainbrain they talk about how 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 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.”
For businesses that find the prospect of having to manage multiple carriers daunting, Nucleus provides a one-stop shop platform that achieves the benefits of multicarrier services without the management PT.