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Choosing the right parcel carriers for your business is not a trivial task. With so many options available, how do you know which –one best fits your needs? How do you compare the rates, services, reliability, and customer satisfaction of different carriers? How do you optimize your shipping efficiency and cost without compromising on quality?
This article aims to answer these questions with a comprehensive overview of major carriers and their standout features. You'll learn how to select the right carrier and negotiate contracts effectively and make the most of cutting-edge industry technologies. Whether your focus is on small or large shipments or you're navigating domestic or international routes, this article equips you with valuable insights to confidently make informed decisions.
Parcel transportation is essential to the global economy as it moves goods by air, ground, or sea. Let’s explore some of the major players in the industry, highlighting their unique strengths and specialties.
UPS, a global leader in parcel transportation, reaches over 220 countries and handles over 24 million packages. Named the world's largest transportation company by Forbes in 2022 and one of Fortune's Most Admired Companies in 2023, UPS is not just about size. They balance tradition and innovation with sustainable commitments such as alternative fuel vehicles and carbon-neutral shipping by 2050. A recent challenging labor dispute didn't falter their progress in the end, either; a recent union win promises drivers $170,000 in pay and benefits over five years.
DHL Group, a global leader in logistics, specializes in an array of shipping and transportation services for various industries and sectors, including e-commerce, healthcare, automotive, aerospace, and humanitarian aid. Operating in over 220 countries, they deliver more than 1.6 billion parcels annually. Among their standout services:
FedEx Corporation, reaching over 220 countries and handling 6 billion packages annually, remains a formidable force in parcel transportation, even after being overtaken by UPS as the world's largest carrier. Guided by innovation, technology, and social impact, FedEx's commitment to safety and customer satisfaction, coupled with its diverse range of services, cements its position as a one-stop solution for various shipping needs.
Since 1775, the United States Postal Service (USPS) has been a trusted provider of domestic shipments and last-mile delivery, known for its affordability and reach. With rates as low as $0.58 for First-Class letters and $8.55 for Priority Mail Flat Rate envelopes, USPS extends its service to every corner of the country, including remote areas, PO Boxes, and military locations. As of July 2023, the USPS reported an on-time delivery rate of 91.4% for First-Class Mail against its service standard. Through last-mile partnerships with carriers like FedEx and UPS, USPS leverages its existing network to enhance reliability and efficiency further, solidifying its position as a preferred choice for many.
LaserShip and OnTrac, regional parcel carriers operating in the Eastern and Western U.S., offer an appealing alternative to national carriers for e-commerce retailers. Since LaserShip's $1.3 billion acquisition of OnTrac in October 2021, their combined network now reaches over 300 million customers, covering both coasts. Advantages include faster delivery, with options like one or two-day service by LaserShip, and overnight or same-day service by OnTrac. Cost efficiency is another benefit, with lower operating costs translating to fewer surcharges. They also provide greater flexibility with weekend and holiday deliveries or time-critical shipments. Their recently launched transcontinental service further enhances the appeal, allowing coast-to-coast shipments in as little as three days, presenting a faster and more economical option for cross-country needs.
Optimizing logistics within parcel transportation requires a finely tuned approach, focusing on a balance between various parcel transport companies and services. Let's explore the intricacies of this strategy and how businesses can capitalize on it.
The art of parcel transportation is no simple task; it involves carefully selecting parcel transport companies and services, creating what’s known as the carrier mix. The carrier mix isn't just a set of choices; it's a strategic alignment that can spell success or failure for a company's shipping strategy. This mix can include national giants like UPS and FedEx, regional specialists like OnTrac, and even last-mile delivery providers. The right blend can lead to cost reduction, increased profitability, enhanced logistics performance, and better collaboration within the supply chain. Conversely, the wrong mix can lead to inefficiencies, added costs, and customer dissatisfaction.
Businesses can analyze their shipping needs to optimize carrier mix and logistics network by following a few simple steps:
Negotiating favorable rates requires both skill and strategy. Here's how to achieve the best results:
With many options in parcel transportation, shippers recognize the need for intelligent decisions in selecting parcel transport companies and services. Technology offers powerful tools to simplify this complex process, aiding in optimal carrier choice.
The integration of technology in parcel transportation is redefining the way shippers select carriers. Shippers can now effortlessly manage relationships, compare various carriers, and tailor selections to specific needs, such as weight and delivery time, through Carrier Management Systems, Multi-carrier Management Software, and Logistics Network Optimization Software. Real-time data analytics further enrich this process by providing on-the-spot insights into market trends and performance. This technological suite not only streamlines the carrier selection but also sets the stage for a deeper dive into the role of data analytics in modern shipping.
Data analytics and real-time rate shopping create a potent tool for shippers seeking optimal decision-making in parcel transportation. By transforming raw data into actionable insights, shippers can gauge costs, service levels, and more, adapting to current market conditions and availability. Real-time comparison of rates further ensures cost efficiency, allowing for seizing timely offers and discounts. The result is a balance of quality and cost that resonates with modern shipping demands.
In this roundup of the who’s who in parcel transportation, we've highlighted the major industry players and technologies shaping parcel transport. We've highlighted multinational companies and regional carriers and emphasized how tools like data analytics and real-time rate shopping simplify the selection process in this dynamic field.
Intelligent Audit, a premier freight audit and payment provider, offers a cloud-based platform that streamlines transportation processes. By handling tasks from invoice auditing to real-time rate comparisons, Intelligent Audit simplifies shipping logistics, claiming an average savings of 2–5% on annual transportation spending.
Ready to enhance your carrier selection and optimize your parcel transportation? Get started with Intelligent Audit today and discover how their solutions can make your shipping strategy seamless and cost-efficient.
Set up a call with one of our experts to discuss how Intelligent Audit can help your business uncover opportunities for cost reduction and supply chain improvements through automated freight audit and recovery, business intelligence and analytics, contract optimization, and more.
