Posted on Mon, May 07, 2012 @ 12:00 PM
For some companies, the idea of change is an intimidating one—a thought that invites hard work and dismisses old habits.
It’s a new way of thinking that suggests venturing outside the lines of the way things have always been done.
It’s hard.
But in an industry that continues to grow, standards are constantly evolving.
Not only do companies have to commit to faster transit times and uphold their superior service, but they must do it in a way that poses monetary benefits for them.
Last year, Shipware LLC, in conjunction with PARCEL, conducted a pricing survey centered on benchmarks, trends and strategies.
There were 440 respondents, whose companies ranged from less-than 25 million dollars to over a billion dollars.
What they found was quite interesting.
The results offered shippers an opportunity to compare market data, carrier pricing and contract terms, and cost reduction strategies with hundreds of other shippers.
It also suggested a bigger place for regional carriers in the market.
When asked if it’s harder or easier to negotiate with FedEx and UPS now than in the past, shippers by a margin of 4 to 1 feel it’s harder to negotiate today. Their reasons varied from a lack of competition (44%) to carriers being focused on revenue yield per package (43%); and the perception that pricing has been commoditized (43%).
But with this shared sentiment, what are shippers doing to reduce their parcel costs?
What about the 12 percent of shippers who answered “nothing”?
Twelve percent of the shippers surveyed are upset about how expensive their shipping costs are, but are doing nothing about it?
The good news is, there are alternatives; companies that can be used to reduce cost and enhance, or even replace the national carriers in large sections of the United States delivery market.
Those alternatives are regional parcel carriers.
Through an interconnected hub and spoke model, regional carriers are able to deliver to large geographical areas in multiple states, and offer next-day ground delivery to destinations more than 600 miles from their origin.
Because they are very capital intensive enterprises, there are only a handful of them located across the U.S. Some of the largest ones are Eastern Connection, Lone Star Overnight, OnTrac, Pitt Ohio Ground and Spee Dee Delivery. Though small in number, these carriers deliver to 40 of the lower 48 states and serve well over 200 million consumers.
Save transit time and boost your bottom line by investigating your alternatives.
To view the survey in its entirety, check out Part 1 and Part 2 in PARCEL Magazine.
Posted on Fri, May 04, 2012 @ 03:40 PM
Gone are the days when a Saturday morning meant a stroll down Main Street and window shopping with the family. Say so long to the times you used to spend sorting through the sale racks in hopes of finding that one gem that would make the last three hours of standing in line worthwhile.
The advent of technology and the constant increase in consumer expectations means our favorite pastime could very easily be replaced, at least in some ways, by the internet.
The face of retail is changing— the millennials are growing up, and the next generation of buying is taking shape. For the first time ever in 2011, ecommerce revenue exceeded 200 billion dollars, and in the next five years it is expected to grow by 60 percent!
That means, by 2016, ecommerce will bring in more than 300 billion dollars, affirming the fact that this ecommerce boom is more than a trend, and giving new opportunities to retailers looking to provide customers with more incentive to shop with them.
But in an industry where free shipping is already offered, how do you combat the still-present shopping cart abandonment issue and play to the beat of a generation that not only wants things faster, but for a cheaper price?
There’s a simple solution: regional carriers.
Next-day delivery to zone 4 destinations means shipping up to 600 miles from the point of origin, at a competitive price.
And this isn’t just to and from neighboring zip codes.
The extensive ground network that is inherent to a regional carrier means any ZIP code, within 600 miles, at a ground rate.
Some regional carriers even offer Sunday pickups with Monday delivery to zone four and offer later pickup times, giving shippers the ability to increase productivity and process more shipments during a working day. (As shippers gear up for peak season, now would be a great time to look into that!)
Nobody wants to deal with the woes of buyer’s remorse—when considering a regional carrier, assess your needs first. Let them know what it is you’re looking for in a shipper and let them tell you how they can help.
For more information on regional carriers and the benefits provided by reducing time in transit, you can view Mark Magill's webinar, "Free Shipping is Not Enough: It is Now All About Time in Transit!" by clicking here.
Posted on Thu, May 03, 2012 @ 05:35 PM
Not every shipment comes with the luxury of a week’s worth of planning—sometimes, when products are ordered, deliveries need to be made at a moment’s notice.
Whatever it is, it needs to get there quick.
For our Menlo Park facility, this is anything but a problem.
In fact, for General Manager Tim Barber and his team, it’s an opportunity—a chance to show customers just how flexible OnTrac can be.
“We typically get orders of plants with less than 24 hours’ notice,” Barber said. “We have excellent communication with our sales team which allows us to coordinate resources.”
And that’s not the only unique attribute to Menlo’s facility.
“We also deal with a very complex campus at Stanford University,” Barber said. “We have a kiosk, or a central location, on the Stanford campus where an SP holds packages for pickups.”
Time is a huge factor in this business and the kiosk is another solution to better serve Stanford customers during the hours of 3-7pm.
With industry standards changing every minute, OnTrac has made it a priority to adapt and find new solutions that meet and exceed expectations.
“In a fast-paced environment, everything is constantly moving and changing,” Barber said. “I know it can be difficult, but it can also be extremely exciting and rewarding.”
The Menlo Park facility, established in September of 2011, services customers as far north as South San Francisco, as far west as the coast, as far east as the Bay and as far south as Los Altos.
Posted on Wed, Apr 11, 2012 @ 11:58 AM
It isn’t uncommon for a feat like skydiving to sit at the top of someone’s bucket list.
Nestled in with the landmark destinations, longstanding apologies and habits to break, inevitably there is some kind of grand adventure—one person’s perfect combination of excitement and danger; a chance to face a fear, and an opportunity to say ‘I did it.’
We all have one.
We iron out the details, travel around the world, and know exactly what we want.
But sometimes, in the midst of all our planning, a new opportunity finds us.
That’s how it went for OnTrac Software Support Manager Danielle Couch who, on a visit to Alaska in 2005, got her first taste of the historic Iditarod.
“I was hooked right away,” she said. “Then I learned fans could be a rider on a sled for the ceremonial start. After following the race over the years I knew I really wanted to take part in the ceremonial start. I told my sister I would do it by my fortieth birthday.”
What had begun as a vacation with her husband to Denali National Park in 2005 turned into a mission to be a part of something bigger, and seven years later, Danielle returned to Alaska—this time, to be a passenger in the Iditarod.
The Iditarod, a reconstruction of the freight route to Nome, commemorates the heroic part sled dogs played not only in the settlement of Alaska, but the 1925 Great Race of Mercy.
Upon her arrival, Danielle and her sister were required to attend a pre- Idit-a-rider instructional meeting, where the main instruction was to “Tuck and Roll.”
“There is a 45-degree turn off the 4th Street corner,” she said. “Sleds have overturned here. As instructed, I had my arms crossed over my chest and held my hands close to my neck, just in case the sled took a turn for the worst.”
Danielle’s veteran musher, Matt Giblin, took the corner fine.
“After I felt I was no longer in danger, I sat back and enjoyed the ride,” she said. “I was amazed to see fans lined along the entire 11.6 mile course. They were waving and yelling out to the musher, ‘good luck’ and ‘get to Nome safely.’”
Giblin made it to Nome on March 16, finishing the race in 11 days 20 hours and 49 minutes.
Posted on Thu, Apr 05, 2012 @ 05:06 PM
It’s no secret that one of the many ways to lead a more “green” lifestyle is to buy local—bypass the big name brands, and opt for something that instead supports the resident economy, creates jobs, helps the environment, and saves energy.
At OnTrac, we want to invite you to take it a step further.
In honor of Earth Day, we are encouraging you to take a look at regional carriers—not only as a cheaper, faster way to ship, but in many cases, as a greener option as well.
At OnTrac, we care about the planet. That's why we've taken big steps to go green by reducing emissions on our fleet of vehicles, optimizing driver routes, and much more.
On a day founded to inspire awareness and appreciation for the Earth's environment, it is imperative to be aware of our role and efforts to conserve—we know giving back doesn’t always mean giving up. These days, small individual contributions and personal lifestyle changes can help greatly.
Through our promotion of electronic waybills, we save paper and thousands of trees every year. OnTrac also optimizes driver delivery routes, and our leased trucks enable us to continue to have the newest, most efficient vehicles, greatly reducing our carbon footprint.
This year, we’re taking it a step further.
In conjunction with the Environmental Protection Agency's Cell Phone Recycling Week, OnTrac offers internal employees the opportunity to recycle and or dispose of old cell phones and PDA devices properly, per the standards set by the Environmental Protection Agency.
Cell phones are sent to cell phone recycling companies like Full Circle Wireless, Pace Butler and Cell Phone Cycle where they are recycled, reused or turned into cash to help support charitable causes like the American Diabetes Association, Children's Miracle Work, the Coalition Against Domestic Violence and many more organizations. The funds have also been used to help the following causes:
- Sending Missionaries to China
- Treating malnourished children in Asia after the 2004 Tsunami
- Building new homes for low-income families
- Providing overseas military men and women with pre-paid phone calling cards
Cell phones and PDAs are made of precious metals, copper and plastics - all of which require energy to mine and manufacture. Recycling cell phones helps the environment by saving energy and keeping usable materials out of landfills. Instead, these materials are conserved so that they can be turned into new products.
Earth Day invites both citizens and businesses to take a step back and remember that we all share the same planet, and sharing the Earth means taking responsibility for what we use and how we use it. It is a day to think of the environmental challenges we face and how to solve them.
Feel good about the environment and save up to 40% on overnight delivery with OnTrac.
Posted on Tue, Apr 03, 2012 @ 12:03 PM
Oral hygiene isn’t something most of us have to think twice about. We know brushing our teeth is important—it’s something we’ve been doing since we were young.
This part of our routine is easy, and we live in a society that makes necessary tools like toothpaste and toothbrushes readily available.
But what about the areas that can’t afford electric tooth brushes and don’t have the option to choose from ten different flavors of toothpaste?
What about the kids who grow up without the education, or knowledge, of how important oral hygiene really is?
That’s where the Miracle Corners of the World, a non-profit organization whose mission is to empower youth to become positive agents of change in their community, and Henry Schein, a worldwide distributor of medical, dental, and veterinary supplies and equipment, come in.
Their partnership has enabled children and adults in Africa to have access to oral healthcare, performed by trained professionals.
And on Tuesday, April 3rd, MCW will host their 8th Annual Gala to honor individuals who embody their work.
Among the many speakers and recipients, MCW will recognize the successful installation of dental laboratory equipment at the Muhimbili University of Health and Allied Sciences (MUHAS) School of Dentistry in Tanzania.
OnTrac has the privilege of sponsoring MCW and Henry Schein at the Gala and supports their efforts to empower youth for positive change around the world.
In conjunction with their “Local Change through Global Exchange” philosophy, MCW has made it a point to achieve lasting oral health improvement, and with the support of over 30 dental laboratory manufacturers, they have been able to employ a necessary combination of resources and expertise.
Following their upgrade project at the MUHAS in Dar es Salaam, MCW teamed up again with Industry Partners to embark on a joint project that would re-equip the Dental Clinic at the Mnazi Mmoja Hospital in Stone Town, Zanzibar.
The clinic was officially opened on March 13.
Posted on Tue, Mar 13, 2012 @ 01:31 PM
This time of year, Sparks, Nevada is a snow-covered collection of corrugated-steel and otherwise unremarkable industrial buildings framed by the jagged edge of freshly powdered mountains.
A winter wind blows remnants of last night’s snowstorm across car windows, and out in the distance the clouds have opened up to let the sun highlight the beauty of this industrial town.
The future of shipping logistics is unfolding in Reno, and it has more to do with OnTrac’s great customer service than one might think.
At OnTrac, it’s all about exceeding customer expectations, and on Thursday, March 1, the company’s efforts were recognized by Newgistics Inc., a shipping company that provides small parcel delivery and return solutions and offers shippers new opportunities to increase customer loyalty and improve efficiency.
After 12 months of performance evaluation of more than 30 different regions, Newgistics presented the first annual Courier of the Year award to OnTrac at the Reno facility.
Of all the couriers in the 30 regions evaluated, the Reno facility was the only one to break the 90th percentile, receiving a score of 94 out of 100-- the average score of this evaluation was in the 60s.
The combined effort of OnTrac’s senior management and Reno’s PM Operations Manager Galin Brooks, who acted as the main point of contact between Newgistics and the OnTrac Reno facility, enabled OnTrac to provide the best on-time pickup and delivery percentage of all the couriers being evaluated.
Pictured (left to right): Mark Cronkrite, Todd Royer, and Galin Brooks
“This is a pretty significant accomplishment,” Senior Manager Transportation Brad Hoff said. “The Reno facility competed with close to 30 other regions over a period of twelve months, and had the highest score during that time. Their score establishes accountability and sets the bar that much higher for years to come.”
Among other things, couriers were evaluated on time in transit, delivery volume, pickup volume and cycle time.
“Reno is the consolidation point for what goes through Newgistics,” General Manager Todd Royer said. “I think a big part of this award has to do with the relationship we have developed with them. They know they can pick up the phone and call us and they will get a resolution. I don’t think they have that with anyone else.”
With this award, OnTrac was named the best company overall for on time delivery and on time returns, both crucial factors that lead back to the most important part of the Newgistics business model: customer service.
“The customer service OnTrac provides is outstanding,” Hoff said. “The whole thing is about the customer experience, and we want a perfect customer experience-- that is what they did for us. As far as I’m concerned, it validates why they’re number one and why the relationship needs to stay in place for a long time.”
Posted on Wed, Feb 01, 2012 @ 12:12 PM
Rate increases have become commonplace in the shipping industry—somewhat of an expected change every year.
But these changes aren’t just percent increases.
Big shipping companies add a superfluity of extra fees—often called accessorial fees, and while a lot of these charges have come to light in recent years, there is one addition that many people do not pay attention to, and it may be costing them considerably more than the advertised rate increase.
It’s simply called: DIM.
What is DIM? DIM stands for dimensional weight. Essentially, a shipper will multiply the length, width, and height of a box, and divide it by the DIM Factor, to determine its shipping “weight”.
According to Jerry Hempstead of Hempstead Consulting, even though the tariff rate increase for UPS and FedEx was 5.9%, because of DIM weighting, rates for ground parcels (1-20lbs) shipped all over the country are likely to see a 7.5% increase. Because of this, in some cases, the increase could be nearly 9%.
With OnTrac, not only will you see fewer (and lower) accessorials, you get a higher DIM Divisor—meaning you can ship more for less. Check our rate comparison!
To read more about dimensional weighting and its impact on your shipping bill, click here for the article from DC Velocity.
Posted on Wed, Jan 11, 2012 @ 01:57 PM
Love is in the air, and this month, OnTrac wants to show you just how much we care!
In celebration of Valentine’s Day, and all of our wonderful customers, OnTrac is giving you the chance to win a $250 dollar gift card to Amazon!
Starting January 16 we will be posting video updates on Monday morning for the next four weeks, with winners announced every Friday and a grand prize drawing on February 14, Valentine’s Day.
To get started, all you have to do is “Like” us on Facebook.
From there, it’s easy.
Play the video, head over to our website and find the answer to the questions.
Leave a comment with the right answer and you’ll be entered into the drawing for that week.
There’s a $50 Amazon gift card winner every Friday!
But, in order to be entered into the drawing for the $250, you must answer all four questions correctly, within the allotted time.
We can’t wait to get started!
Keep an eye on our Facebook page to make sure you’re up-to-date with all the OnTrac News and contest information.
Some exclusions apply—OnTrac employees are not eligible, so make sure to tell your friends!
Posted on Tue, Jan 10, 2012 @ 10:18 AM
All the presents have been unwrapped. The food has been eaten, and the holidays are finally over.
But even with the in-laws gone, and all of the decorations packed away, there is still work to be done.
A recent study by comScore Inc. reported online sales up 15 percent, a grand total of $35.3 billion in sales this past November and December.
But with online buying, so too comes online returning.
Inevitably, some of your customers received gifts that weren’t on their wish lists—sweaters that were too small, too festive or too... much.
And if customers were already insulted by their mother-in-law’s fashion tastes (and all three of the festive new sweaters they received) why make them pay more to ship gifts back?
This year, let us help keep your customer’s budget on track.
With our competitive rates and lower fees and surcharges, OnTrac will get your shipment from point A to point B, hassle free.
It’s the gift that keeps giving.
OnTrac offers ground shipping that will save a transit day, and go easier on your wallet. This means you and the buyer can rest easy knowing that you are getting maximum savings—and getting rid of all those sweaters.
Want to read more about the "return season" in the shipping industry? Click here for the New York Times article.