It's Time to Think Outside the Box

Posted on May 7, 2012 10:00:00 AM

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.

Topics: package delivery options, Shipware, regional carriers, OnTrac Shipping

The Time is Right to Make the Switch to a Regional Carrier

Posted on Oct 3, 2011 3:12:00 PM

With the announcement that UPS is changing their rate structure, more and more people are turning to regional carriers to give them high-quality package delivery service at affordable rates. There is a growing list of accessorial fees with national carriers that are continually costing you more on your shipping bill. With OnTrac, there are only a few. Conservative estimates of FedEx and UPS list over 40 accessorial fees.

Sure, you may be getting a “discount” with a national carrier, but you are also paying more fees on top of the shipping costs. OnTrac delivers your shipments on time, and with fewer fees and surcharges—all at a lower rate. Save a transit day, and get next-day service at ground rates—go OnTrac.

Read more about regional carriers at DC Velocity »

Topics: package delivery options, DC Velocity, Accessorial fees, OnTrac, OnTrac in the News

E-Tailers Are Changing the Rules on Shipping

Posted on Aug 31, 2011 10:45:00 AM

Remember when it used to take forever to get your online orders delivered? The rules are changing, as we’re seeing with Amazon’s newly acquired subsidiaries. Diapers.com, Soap.com, and Wag.com all offer free 2-day shipping with orders of $49 or more. How is this possible? Executive Vice President of Operations Scott Hilton talks about the technological advances in the video below. Another reason it’s affordable? They use OnTrac.

Diapers.com

OnTrac offers next-day shipping for exceptionally low rates in the Western seven states. In the case of these three companies, OnTrac can ship next day to a majority of its service area from their warehouse in Reno, NV.

Are you giving your customers the best you can?

Check out the interview with Scott Hilton on YouTube »

Click here for an article about Wag.com on Internet Retailer »

Topics: package delivery options, regional package delivery company, Internet Retailer, Soap.com, OnTrac Shipping, Diapers.com, Wag.com

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

Staying Cool: Summer Shipping Tips

Posted on Jul 6, 2010 9:57:00 AM

OnTrac delivery truck

It's officially summer!  If you live in, or ship to the desert Southwest it's time to factor triple-digit degrees into your temperature-sensitive residential deliveries.

Most shipments may endure the heat, but chances are Fido's medication or the box of bonbons won't fare as well as they safely wait for the recipient to return from work.

Luckily, avoiding high-temperature situations is easy with OnTrac.  Both shippers and receivers have tools and options available to protect deliveries from the seasonal heat wave.

:: Shippers ::

Delivery Instructions

If your products can't stand the heat, get them out of the kitchen with the delivery instructions.  Use the waybill field to inform the OnTrac Service Provider of any special placement arrangements you've made with the recipient.

Signature Required

At no additional cost, this feature tells the Service Provider that the shipment must be signed for by someone at the delivery address.  If no one's available, a door tag is left, giving the recipient delivery options, including an area to communicate special delivery instructions.

Email Notification

In this day and age of smartphones, an email may be the fastest way to reach your customer.  Email notification not only notifies the recipient of the proof of delivery but also allows you to share the shipment's information when the waybill is created.   Receiving the tracking details before the delivery gives the recipient time to make arrangements if needed.

:: Recipients ::

Ship it to the Office

Subtract sleeping and weekends and you probably spend more time at the office than you do at home.  Plus, your office probably has a receiving department.  Even if you're not available, your shipment will be better protected from the elements in an office than if left outside.

Deliver it to the Neighbor

Good packages make good neighbors, sort of.  If you know your neighbor will be available the day of the delivery, contact OnTrac" href="http://www.ontrac.com/contactus.asp" target="_self">contact OnTrac with the details and the Service Provider will be glad to deliver it next door.

Go for Gold

By upgrading to a premium service your delivery will arrive early AM, probably before you leave for work.  OnTrac Gold service is up to 50% less expensive than the early AM services offered by national carriers.  And, it has an earlier guaranteed delivery time, too.  Check the OnTrac website" href="http://www.ontrac.com" target="_self">OnTrac website or ZIP Code Guide" href="http://www.ontrac.com/pdf/zipCodeGuide.pdf" target="_self">ZIP Code Guide for the exact delivery time for your ZIP.

Bottom line, you've got choices with OnTrac.  Flexibility and a "can do" attitude is what we're known for and delivering customized shipping solutions is what we do best; just let us know how we can help" href="http://www.ontrac.com/contactus.asp" target="_self">let us know how we can help.

Topics: package delivery options, residential delivery, summer shipping