Love the Zone You Ship

Posted on Feb 15, 2018 6:07:21 PM

Understanding how to use zone shipping to your advantage will make you fall back in love with your shipping provider.

What is Zone Shipping?

Zone shipping is a common practice that shipping carriers use when creating fee structures for their customers. Rather than showing costs based on a map of US state borders, a zone map will divide regions and countries not specific to the state borders, but rather taking into consideration the surrounding megaregions (see megaregion map below.) Essentially, the cost of shipping is determined by how many zones a package must cross when traveling from its original origin.

Megaregions.png

Megaregions, or US population centers, are large metropolitan regions that share economic systems, transportation systems, and natural resources where population continues to grow. With distribution centers located in these largely populated areas, the distance a package travels might be a shorter distance to the destination than you think. OnTrac focuses resources in megaregions in order to be able to provide the very best advantages at the very best price.

Why is Zone Shipping important?

According to research done by The Colography Group, Inc., over 70% of packages stay within Zone 4, which is up to a 600-mile radius of the shipping origin. For regional carriers like OnTrac, who also service Zone 5, that percentage climbs to over 80%. In addition, the majority of these packages actually stay within Zone 2 (approximately 47.9% according to the below chart.) This means that the majority of packages shipped by companies stay within their general geographic region. Implementing a regional carrier, like OnTrac, will provide companies with a significant price savings with less fees and surcharges than the national carriers.

package-travel-distance.jpg

According to VISIBLE Supply Chain Management, “United States e-commerce sales reached $396 billion in 2016, and sales are estimated to grow beyond $684 billion by 2020; that’s nearly double the sales in just four years! Over 53 percent of global Internet users made online purchases in 2016—about 1 billion people. As a result, growing companies that aren't proficient in shipping could lose thousands, if not millions, of dollars. Employing strategic shipping strategies that take zones into account will become increasingly important as e-commerce sales continue to grow."

How to save with Zone Shipping?

Since zone shipping is used by all major shipping providers it is wise to fully understand how each carrier prices their zones. Rates will vary depending on the carrier and the shipping service that you select. Thankfully, OnTrac Ground uses the same rate zones as National Carriers, allowing a more accurate comparison of fees, surcharges and transit times. For example, did you know that OnTrac is 36% less for residential deliveries that require a signature compared to national carriers?

Plus, OnTrac can save multiple transit days for a single package to compared to the national carriers. Below is a Transit Day map that shows how much faster packages travel from Reno, Nevada throughout the OnTrac service region. Speaking of megaregions, OnTrac’s innovation has synchronized supply and demand specifically in the populated Reno area.

Transit Days from RNO.png

Using a multi-carrier strategy will allow for an overall greater shipping experience. For more information on how a regional carrier can set you up for success, continue reading here


OnTrac provides the benefits of next-day delivery at ground rates! To learn more about how OnTrac provides faster transit times and reduces shipping expenses, click here.

Topics: Zone 4 deliveries, Zone Shipping, ZIPTools, faster time in transit, save a transit day, Time in Transit

Service, Savings and Convenience - That’s OnTrac.

Posted on Jul 28, 2014 4:38:00 PM

Overnight Shipping in Denver

When you choose a shipping company, you’re choosing flexibility, cost reduction, faster Ground delivery and increased productivity. 

With OnTrac, you get all of that.

We’ll enable your company to gain the competitive advantage, grow revenue and improve shareholder value.

How? Because we’re able to provide you all the reliability you expect from the National Carriers, without the hassle of big volume commitments.

You, and your customers, will save money with fewer surcharges and simple, easy to understand contracts.

Plus, the OnTrac module is easy to use!

Create labels online and take advantage of our mobile device tracking, multi-state drop box locations and free, convenient pickups.

We service 60 million consumers throughout the 8-state service area of California, Arizona, Nevada, Oregon, Washington, Utah, Colorado and Idaho.

If you’re thinking of switching to OnTrac, or you know someone who should, visit our Welcome Center to see how we stack up against the competition.

We’ll show you how to gain a competitive advantage and improve shareholder value.

With faster, more cost effective delivery that is a sustainable competitive advantage, you will be able to increase customer lifetime value.

Plus, better pricing with a regional carrier will improve expense management and ensure profits are not lost in shipping.

It’s easy to see how incorporating a regional carrier into your existing shipping workflow is a great way to reduce your overall net shipping expenses.

Topics: Time in Transit, overnight shipping at ground rates, save a transit day, improve efficiency

Reduce Transit Time and Shipping Spending with OnTrac

Posted on Jul 1, 2014 2:06:00 PM

As eCommerce sales continue to rise, OnTrac remains in a position to save its customers time in transit and boost their bottom line.

It’s no secret that faster time in transit is the key to keeping businesses competitive – the largest online retailers are able to get products delivered quickly, setting an industry standard and giving customers high expectations for their online shopping experience. They want their ecommerce orders delivered as fast as possible, for as cheap as possible.

According to a recent comScore study, at least 42% of online shoppers reported abandoning their shopping carts because of delivery timing estimates. Two-thirds of shoppers choose the most inexpensive shipping option, more than 40% expect to see the availability of 2-to-3 day delivery and nearly a third want the option to choose overnight shipping. A third of shoppers said they most often choose to pay a fee for faster delivery.

In that same study, 48% of online shoppers said they are not willing to wait more than 5 days for packages to be delivered.

With OnTrac, consumers notice a reduction in both transit time and shipping expenses. As a regional carrier, the company utilizes its regional hub-and-spoke model to provide next-day delivery at Ground rates to more than 60 million consumers in the eight Western States.

In the more than 20 years OnTrac has been in the business, the company has come to know just how important the need for speed is, but they also recognize the need for a great customer experience, as well.

That’s why we provide all the same characteristics people have come to expect of their delivery companies – tracking, software integration, live help and an intuitive, easy-to-use website.

If you have any questions about our service, or are looking to get started with OnTrac, simply call our Customer Service number at 800.334.5000 or visit our Welcome Center at ontrac.com.

 

 

Topics: competitive advantages, online delivery, ground rates, online shopping, fees, eCommerce, comScore, free shipping, faster time in transit, Time in Transit, save a transit day, OnTrac Shipping, deliveries, lowest cost shipping, fewer fees

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