When it comes to choosing a shipping carrier, most businesses pick carriers one at a time and then negotiate rates.
However, your company’s shipping demands keep fluctuating within a year. To keep up with the changing shipping needs, businesses must design an effective carrier strategy that can work any time of the year.
Here is a simple guide on how to create a carrier strategy for your business:
Creating a Carrier Mix
Most companies use two or three carriers to transport products. However, if you want to achieve efficiencies and cost savings, you should select at least have 5 carriers. Having access to a variety of carriers gives you diversification and allows maximum flexibility when dealing with customers.
If a carrier suspends its operations due to weather conditions, you can opt for another carrier service
Your shipping strategy must have the right mix of carriers.
Your Business Goals
1.Next step, align carriers with your business goals and objectives.
2.It is important to realize that companies have different goals..
3.At the same time, no two carriers offer the same kind of service.
4.Evaluating the performance of each carrier will help you decide if it can fulfill your expectations.
Another crucial factor is the products you are selling. For example, in case of perishable food items, you need a carrier that ensures proper transportation of these items to avoid damages
Based on the type and size of your products, you can choose a carrier that will meet your needs.
The Right Carrier Blend
Creating the right carrier blend is tricky. Depending on your specific business goals, risk tolerance level and your market position, you can create either a conservative or an aggressive carrier mix.
Risk Vs. Performance
To compare the risk level and performance of carriers, invest in a multi-carrier system. A multi carrier shipping software is designed to support multiple carriers. It allows customers to compare rates and delivery times of several carriers
Processweaver offers innovative multi-carrier solutions to businesses across the world. The company is based in North America, but operates across Europe and Asia Pacific as well
Designed to solve complex logistics issues, ProcessWeaver’s shipping solutions are used by FedEx, DHL, UPS, USPS, and other carriers
Their shipping software also delivers easy and painless integration with SAP, Sage, Oracle, and many other ERP systems. Interested in trying ProcessWeaver’s software? Request a demo online.