Riding the Fuel Surcharge Roller Coaster

As oil prices dropped, the carrier's fuel surcharges for air and ground shipments also dropped. This was great for everyone - that is while it lasted. The two major US package carriers have posted their fuel surcharges starting August 3, 2009. Looks like the ride has started again. How much are they going up? Ground is increasing about 27% over the surcharge from July 1st. Air shipments are much more - a 550% increase over the surcharge from July 1st. That's a price increase you need to keep track of.

The fuel surcharge is calculated on fuel prices going two months back, so the rates for August are up even though we see lower gas prices recently. But how does this affect your shipping? After all, you still need to ship your packages. And how can your shipping system help?

First, make sure your shipping system can account for the fuel surcharge so it's included in rate calculations and rate comparisons. Next, check to see if the fuel surcharge amount is included in reports or data you use from your shipping system. This makes sure you can check your bills and charge your customers correctly. Here is how our CPS™ shipping software helps its users cope with these changing monthly figures.

The fuel surcharge is included with every rate calculation and rate comparison. That means the shipper always sees the correct shipping rate. Next, CPS provides a critical report that can be run quickly and at anytime. This report shows the average cost per box and per pound so you can quickly determine your "break even" shipping costs so you can decide how much you should be charging for shipping. We call it the "Flat Rate Calculator" since its shipping cost averages tell you the flat rate you need to charge so you do not lose dollars when charging customers for shipping.

A shipping system that handles the fuel surcharges so you have the best information keeps you in control of your shipping. And isn't that the idea?

FREE Multi-Carrier Shipping Software?

Usually we write about shipping and ideas showing the ways that an automated shipping process can really help a company's profit. Of course, since it's our Blog, we also show how features in our CPS shipping software can help, but we also explain the features to look for in other systems, too. This Blog is different. This will still have an idea (or two!) for shippers to save, but this time we can't tell you what to look for in systems other than CPS. This is not because we are changing our direction, but rather there is not another shipping system we've seen that presents this new offer.

Would you like to use multi-carrier shipping software for FREE? Well, you can! Today's economic conditions are very complex. While we know our multi-carrier shipping products can help you save as you ship, we also realize that finding ways to lower your costs to do business is very important. Plus, the economy is stressing your customers. For these reasons, Harvey Software has created our all new Shipper Dollars program that can let you use our shipping products for FREE! That's something that no other shipping system provider gives you.

If you want to know the details about Harvey Software’s Shipper Dollars click here… The rewards are generous and it's easy to get into the program. Check it out today!

Until next time...

Services Like UPS Mail Innovations® Offer Great Rates. Now What?

Have you been offered (or maybe read about) the new services that combine the package carriers' service with the post office doing final delivery? There are several. Since the UPS Mail Innovations service is a good example of these; I'm going to discuss that service that handles packages up to one (1) pound. The carriers will give you the pros and cons of the service but there is no doubt they do have really appealing rates. But how do you make the service work best for you?

There are obstacles. The special rates you get with this service may not be supported in your order management system so the order system cannot choose the service for you. You could pre-sort your packages after packing, but this can mean double handling packages and missing packages that could ship with this service and losing the maximum savings. This is where a shipping system can help. Here is how our CPS™ Shipping System handles this.

CPS seamlessly integrates UPS Mail Innovations into the CPS shipping software. This lets CPS users choose UPS Mail Innovations for any package, or shipper can let CPS RateBots™ automatically rate shop and choose UPS Mail Innovations so CPS users save with every qualifying package they ship. This type of seamless integration puts CPS users in the driver's seat. Anytime a shipping system lets a shipper take advantage of cost savings, the shipper wins.

Check with your shipping system provider to see how your system can work with these services. Visit http://www.HarveySoft.com/ if you would like to know more about CPS.

Reconciling Your Carrier Bill

When is the last time you checked your carrier bill? Not just looking at the bottom line to approve the check, but actually checking the bill to reconcile it to your shipping? If you are like many, the carrier bill doesn't easily match up to your shipping records, but you pay it anyway and hope it is right. Add multiple carriers to this, mix in special rate contracts with one or more carriers, and you have a very interesting accounting situation. Now, how do you make those numbers make sense?

Shipping systems can help with this. I'll use our CPS™ shipping software as an example. CPS has settings (we call them environment variables) that can send order reference data to the carriers and this reference data will appear on your bill. CPS also has historical shipping reports that can be selected by carrier. If you have a contract with special rates for a carrier, CPS can also show your company's specific rates, not just the carriers' published rates.

But how does this help? First, you can print the historical report for the billing period, by carrier, so you can pretty easily check the amounts on your bill using your company's rates. Unusual "after delivery" charges, like Saturday delivery and address correction charges (we have a module to help with this, but that's another article) may have to be factored in, but you can see pretty quickly if the bill seems right. Next, if you have shipments you need to verify, the reference data you send to the carrier lets you find the order in question in your records. Of course, the CPS shipping history stores information about the shipment, too. CPS also provides department reports to keep track of shipping costs according to your company's cost centers. Use these report and reference tools and you can take a knowledgeable look at your shipping bills.

Is it still an effort to reconcile a carrier bill? Yes. Can tools like these make it easier? You bet! Look for these tools in your shipping system, or visit http://www.HarveySoft.com/ if you would like to know more about CPS.

Or, you can just trust the carriers…

Why Am I Being Charged a 70 Pound Rate for My 1 Pound Box?

Dimensional weight is how the carriers bill for the size or volume of a package in a shipment, not just the package weight. The concept is simple. Think of shipping the proverbial 1 pound box of feathers. It's a big box, but there is little weight. And that's the problem - too much space taken up for too little revenue.

To address this, dimensional weight was born. Carriers now want the box size along with the box weight so they get the revenue for the space as well as the weight. How does this affect you as a shipper? It's pretty basic - if you don't account for the correct box size and weight, you can get some real surprises on your carrier billing.

Providing the dimensions is important so that you know how much it will cost to ship a package. Carriers also categorize different box sizes into different dimensional price groups, so it's sometimes more complicated than just a simple calculation.

Shipping software systems handle this situation so that you are not ambushed by extra charges after you ship. Typically, you enter the box measurements, and then the shipping system takes over. Some shipping systems, like Harvey Software's Computerized Parcel System (CPS™), let you keep a data file with your box sizes so you only have to choose the right box type instead of entering the box dimensions every time.

Tired of Playing "Commercial/Residential Address" Roulette?

Address problems come in two categories. First, when the address is wrong, even if the customer typed it themselves. (When you have an online store, you discover that not everyone actually knows where they live!) Second, when you have pages of residential delivery fees that you didn't expect and did not charge to your customer. The first problem means you can have undeliverable packages (or packages with expensive address correction charges) making unhappy customers. The second problem of unexpected fees makes you unhappy. An additional layer to this problem is that address verification programs can cost in the thousands, so how can you make a solution for these problems cost effective?

Here is one way to solve this - address verification capability right in your shipping system. For example, Harvey Software makes an Address Verification Module (AVM) for its CPS shipping software. The AVM uses the USPS CASS certified database and: 1) Makes rate shopping happen correctly between residential and commercial services; 2) Warns you if the residential/commercial choice is incorrect; 3) Tells you when an address doesn't exist; 4) Lets you know that the address exists but is missing some key information such as suite number apt. #, etc.; and 5) Standardizes addresses to match the USPS CASS certified database. The cost for the AVM is just $199.95.

CPS is not the only shipping system that has this available, although the CPS AVM is definitely one of the least costly. Address checking in your shipping system is another way a good shipping system can help your company and put money on the bottom line.

Success Story - From Start Up to Leader

Alibris has announced that it grew sales for its sellers in the 2008 winter-holiday season by more than 8%, even as online book sales shrank 1% during that same period, according to reports. No surprise here.

From startup just over 10 years, today Alibris lists over 100 million volumes from over 15,000 book sellers participating in the Alibris network, with almost 1 million volumes stocked in their warehouse.

Early on, Alibris identified a need for the advanced technology required for low-cost logistics capabilities and a smooth, consistent order flow. Alibris chose Harvey Software's Computerized Parcel System (CPS™) to act as the heart of their shipping operation, including shipping with UPS.

"CPS provides robust technology as a solution to these issues."
VP of Operations
Alibris
http://www.alibris.com

Read more here about Alibris and how CPS helps with their shipping issues.

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Look for these advanced benefits in a shipping system to save money and optimize the daily shipping process:

• Domestic and International shipping services supported


• Automatically resolution of residential and commercial address status


• Easy integration with in-house data and existing systems


• Automatic determination of least cost way to ship using shipper created rate comparison codes


• Easy to use cost monitoring reporting so users can offer flat rate or free shipping without worry