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Parcel Management Solutions

For distributors, handling freight can often be a costly expense rather than a source of profit. However, with the right tools and expertise, you can transform this situation. At NSA Professional Services, we offer a range of parcel management solutions that seamlessly integrate with various ERP systems.

In this article, we summarize Supply Chain Brain’s article titled “Delivery Area Surcharges and Other Parcel Rate Hikes to Watch Out for in 2024” and how to address parcel rate hikes.

The article states, “With the new year well underway, shippers are free from the tyranny of urgent holiday order fulfillment. Now, they can shift their attention to the general rate increases (GRIs) levied by parcel carriers, and focus on mitigating the impact on their shipping costs. 

The 2024 GRI announced by UPS and FedEx came with a headline 5.9% figure — a full percentage point lower than last year. In a vacuum, that might sound like a boon for shippers. But the reality is that 5.9% is still the second-highest GRI of all time, and the true impact to shippers is much higher.”

Article Summary and Key Takeaways:

  • Shippers face general rate increases (GRIs) levied by parcel carriers in 2024.
  • The announced GRI of 5.9% by UPS and FedEx may seem favorable, but it is still the second-highest GRI in history.
  • Annual parcel cost increases compound over time and significantly impact shipping costs.
  • Certain shipment profiles, such as those involving remote areas, are particularly affected by GRIs.
  • The topline GRI figure does not account for surcharges and accessorial charges, which can comprise a significant portion of total shipping costs.
  • Hidden within surcharges are higher labor costs and rule changes that carriers use to raise revenue.

 

Actions to Mitigate Parcel Rate Hikes:

  • Understand your shipping profile, including zones, services, and additional requirements.
  • Work with experienced professionals to effectively navigate annual increases and limit their impact.
  • Consider alternative shipping options, such as using ground transportation instead of air.
  • Optimize distribution center operations to expedite order fulfillment without compromising delivery expectations.
  • Take a holistic view of carrier contracts to avoid compromising important discounts.
  • Lastly, prepare your distribution business for the upcoming parcel rate hikes in 2024 by taking proactive steps. NSA Professional Services is here to support you with our specialized parcel management solutions that integrate seamlessly with various ERP systems. We detail our effective solution to distributors below!

 

Multi-carrier shipping software solutions offer a vital component for ERP systems by optimizing shipping and logistics operations. These solutions provide a unified platform to manage, compare, and select shipping carriers, resulting in cost efficiency and improved customer service.

With features like real-time rate comparisons, label generation, tracking and Proof of Delivery, our Multi-Carrier Shipping software solution simplifies the shipping process. This enhances delivery accuracy and ensures a seamless supply chain, making it an indispensable asset for businesses striving for streamlined and cost-effective shipping solutions

If freight management is challenging for your distribution business, don’t hesitate to contact us. Let’s explore how we can provide the assistance you need.

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