Regional Carriers Can Boost Your Business in All the Right Places!

Posted on Jul 19, 2011 4:27:00 PM

Mark Magill, Director of Business Development at OnTrac, is interviewed by Russell Goodman of Supply Chain Brain. He offers a breakdown of the current status of the shipping industry, and why your shipping rates with national carriers are going up. Watch the video for a look at the current status of the shipping industry, and the change in focus from the national carriers that is leading to your shipping rates going up.

MMagillSCB

Click here to watch Mark’s full interview.

Topics: package delivery options, residential delivery, accessorial charges, Residential Delivery fee, regional package delivery company, yield management, Supply Chain Brain, Accessorial fees, OnTrac Shipping, OnTrac, ontrac.com, Residential Delivery Area Surcharge

Butterflies & Boxes: Long-Term Effects of Switching Carriers

Posted on Mar 5, 2010 5:17:00 PM

Butterfly on Box

Ever heard of the Butterfly effect? No, not the Ashton Kutcher movie, but the metaphor it's based on? The idea is that a butterfly's wings create tiny changes in the atmosphere that could eventually alter the path of an entire weather system! Okay, way too deep. Let's refocus.

Ever ponder how your decision to choose OnTrac affects a whole lot more than just packages getting from point A to point B? Think about it.

Customers get their orders faster and for less cost, which creates a positive impression and a higher chance for repeat business. Repeat business turns into capital, infrastructure, jobs, household brands, you name it.

Rather stick to numbers? No problem. Here's the math:

Next-Day Shipping Rates from Los Angeles, CA to San Francisco, CA

Weight
 OnTrac FedEx UPS
 Letter $11.95 $23.40 $21.70
 1 lb.
$16.50
 $34.05 $31.60
 5 lbs. $20.70 $50.35 $46.70
 10 lbs. $26.65 $68.60 $63.60
15 lbs.
 $34.10 $86.65 $80.35

And, that doesn't even include the money you save on all the fees. Here's a look at one of the dozens of fees you're avoiding by choosing OnTrac:

Daily Long-Term Savings of No Residential Delivery Fee

 VolumePer Day
 Per Month
Per Year
 100 $250 $5,500 $66,000
 250 $625 $13,750 $165,000
 500 $1,250 $27,500 $330,000
 1,000 $2,500 $55,000 $660,000
 2,000 $5,000 $110,000 $1,320,000

 

Sure, there are more variables in the business equation, but choosing the right shipping company can be a big part of your success. A low cost, high-quality carrier can easily be a game-changer; not only in a bad economic environment, but a good one too.

But hey, you're already shipping with OnTrac so this is old news.

Fewer fees add up to BIG savings! See a fee comparison of the most common surcharges here.

Topics: accessorial charges, Residential Delivery fee, OnTrac Shipping, ontrac.com, Residential Delivery Area Surcharge

5 Ways to Save Money with a Regional Package Delivery Company

Posted on Oct 1, 2009 4:28:00 PM

In the midst of the current economic climate, shippers are actively seeking to reduce their costs.  Shipping with a regional package delivery company can reduce a company's shipping spend by as much as 40%.

Just by eliminating the 85 plus accessorial charges that the national carriers levy, a company can save over 25% off their current shipping costs.

Below are 5 reasons, shippers should consider using a regional package delivery carrier:

1) Increased Productivity - Since regional package delivery companies use ground-based solutions to deliver their packages, they have much greater flexibility in offering their customers later pickup times.  They can offer pickup times as late as 8:00 pm and still provide next-day delivery.  For shipments staying in the local area, pickups can be made as late as midnight.

2) Faster Deliveries - Because regional package delivery companies are geographically based, they can provide guaranteed next-day delivery for ground shipments to Zone 4 destinations over 600 miles away from the pickup point.  And can often save a transit day compared to major national carriers.

 

 

3) Aggressive Pricing - Because regional package delivery companies have a specific market niche to fill, they offer rates as low as 40% less than national carriers.  Large companies typically have national contracts with discounted rates from the national carriers.  But now with the exit of DHL from the domestic market there is no "low price leader" to speak of.  As we have seen from the 2009 rate increases, even in challenging economic times, the national carriers will continue to add accessorial charges and raise their rates.  It would very much be in the shipper's best interest to find out where their shipping spend lies on the the national carriers discount tiers. They may be able to move a significant volume over to a regional package delivery company, maintain their national discount level and significantly reduce their costs. 

4) Accessorial Fees- The duopoly of national carriers have over 85 additional charges (accessorials) that can be added to the base price of you shipments.  These include delivery area surcharges, residential surcharges and additional handling fees.  They can add as much as 28% to your package rate.  Most regional carriers limit their additional charges to a handful of fees such as CODs, Saturday delivery and declared value.

5) Within the Region- The majority of packages shipped by companies stay withing their general geographic region.  According to a study done by The Colography Group, 70% of of packages remain within the Zone 4, 600 mile radius of the shipping origin.  And, for regional carriers like OnTrac who also service Zone 5, that percentage climbs to over 80%. 

Using a regional package delivery company can increase your company's productivity by providing later pickup times, give you a speed to market advantage over  your competitors through improved transit times and reduce your shipping expenses through lower rates and fewer accessorial charges. 

Topics: accessorial charges, regional package delivery company, Zone 4 deliveries, overnight shipping at ground rates, save a transit day, 40% less