Regional parcel carriers may have fewer resources than the national or international players. However, their size doesn’t mean they offer subpar service. In addition, it’s this smaller footprint that effectively enables additional small carrier operations to emerge. As such, they are a diverse group of transportation service providers that can help your company find parcel capacity through disruption.
Ample capacity always seems to be the supply chain professional’s top problem. Unfortunately, the risk of disruption remains omnipresent and continues to force the hands of logisticians. But there is a possible solution by leveraging regional parcel carrier relationships.
As reported by to Jake Wertner of Parcel Industry, “Sourcing relationships with these carriers can provide time-in-transit advantages as well as reduced costs; however, these benefits can be mitigated if one isn’t mindful of national carrier terms and individual package and distribution characteristics, among other factors. As with most decisions regarding small-parcel supply chain, it is critically important to understand package and distribution characteristics. Without a thorough understanding, one risks ineffective transportation procurement at best, and disastrous financial consequences at worst.” Let’s take a closer look at why your company should consider working with regional parcel carrier contracts and how to recognize when it’s time to do so.
Generally Lower Risk of Accessorials
A regional parcel carrier is also less likely to have exorbitant or detailed accessorial and handling fees. Since these companies operate within a smaller service area, they likely have access to additional resources that can keep those fees at bay. For instance, local purchasing of fuel and existing business relationships mean these parcel carriers can simplify their pricing models too. That has the added benefit of helping regional carriers stay more competitive because there is more work required to inject into the regional hubs than the larger, national carriers.
Premium Service Guarantees
Regional carrier service guarantees are also some of the best in the business. Remember that they have an interest in getting the best deals possible. They simply cannot absorb major losses if their companies were to suffer a setback during disruption. That’s why they prioritize service and may offer more robust service guarantees, as well as around-the-clock service and support. It’s all about ensuring your business gets the service and quality necessary to keep the relationships alive, reducing your transportation spend along the way.
Expertise in Local, Regional Areas
A regional carrier also has an added level of expertise in local, regional areas. They deliver to a set area, so they’re more likely to know what could and does go wrong. Take the example of recent extreme weather. Local, regional parcel carrier experience may mean the difference between knowing a back road to get a parcel delivered or ending up stuck in hours-long traffic due to flooding. It’s that added level of expertise and a higher level of customer service offered by regional providers that drives many shippers to seek out regional parcel carrier relationships.
Leverage the Increased Value of Regional Parcel Carrier Partnerships by Working With an Expert
There is one caveat to those considering regional carrier contracts. Due to their size, it could be difficult to find and establish those business relationships. That’s why more companies are turning to experts to help find and build lifelong regional parcel service provider partnerships. At the same time, it can be difficult to know when a company should consider outsourcing more parcel needs to regional carriers. Again, it all depends on staying strategic and letting the data show when it’s time to rethink your network strategy. Fortunately, that is exactly the rationale behind Intelligent Audit — using data to help your company think about the long-term strategy and making the decisions that will promote the best interests of your business. Connect with Intelligent Audit to learn more today.