If you don't optimize shipping rates between all of the carriers, you might as well tape your boxes shut with the money your business is giving away. We recently began a new series to dive in-depth to specific features of Harvey Software’s CPS shipping software that differentiate it from other multi-carrier shipping systems. Last week we were focused on support, for which our company is second to none in our industry. This week, we’re going to talk dollars and sense. If you are looking into multi-carrier shipping software, your bottom line is likely your highest priority. You are interested in rate shopping between the parcel carriers, and you want to be able to do it quickly. The CPS Best Way Calculator accomplishes both of these goals with rate shopping between the carriers for each package you send. Let’s compare a lighter package, a heavier package, and an overnight package.
The first example is a package going from Atlanta to Chattanooga. Just enter the address, weight, and necessary dimensions into the CPS shipping software. For this five pound, 24x24x18 package, the three major carriers come in close to one another, with one at $14.20, another at $14.28, and another at $13.29. However, to ship the same package from Atlanta to Billings, Montana, there’s more of a separation. One carrier has a rate at $43.92, another at $40.48, but the third comes in at only $14.20 again. Why such a large separation? That cheaper service does not have a guaranteed delivery day, whereas the others guarantee delivery in three days for this package. This allows you, the shipper, the ability to select the service that best meets the needs of your customers.
How about another sample package using ground service, going from Houston to Newark? This one is heavier, at twenty-five pounds. The same carrier that was $14.20 above is now $90.92 for this heavier package and longer distance. The other carriers we are including in the comparison report a cost of $48.88 and $53.09. So even though one carrier charges considerably less in the first example, to use their service for this heavier package would cost almost double compared to the least expensive offering.
Now, for overnight services: for this example, let’s send a ten pound package from Las Vegas to Sacramento. One carrier is $72.68, another $65.80, and the third is $53.81. Again, the cheapest service here was the most expensive in another example. And with the CPS Best Way Calculator, these choices are displayed as soon as the package weight is entered. It takes only seconds to compare rates from the carriers. If you use only one carrier and service without ever looking at the others, it’s very likely you are spending more than necessary on your shipping.
At this point, you might be wondering how your company’s negotiated rates with one of the carriers might come into play. You can use those negotiated rates within CPS or even set the CPS default carrier as your preferred carrier, so your carrier choice is streamlined for even faster processing. With CPS reporting features, which we will address in a later post, you will quickly see how much you’re using each carrier and how often they are truly providing you with the lowest cost option. This is important information that you can use as a tool in your negotiations for upcoming carrier rate contracts.
The CPS Best Way Calculator can save your business money on every package it ships. If you’ve never seen it before, check out our Estimated Savings Calculator on our website. Simply input your shipping volume, your residential vs. commercial percentages, and the CPS tools you might be interested in. You will see that even with a small to moderate volume of packages, using CPS will pay for itself many times over. Start saving immediately with the CPS Best Way Calculator on your side. For more information, visit www.HarveySoft.com.
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