Air to Ground Conversion Savings

There’s an assumption that shipping with FedEx, UPS, DHL Express is better, faster than Ground delivery options. It’s certainly more expensive, but better and faster? Not necessarily. In many cases Express shipments are in transit as long as, or longer than, Ground shipments.

The Air to Ground Conversion Analysis identifies Express shipments that could have been shipped Ground without compromising delivery time, and itemizes the potential cost savings of converting to Ground. The results can be staggering. Continue reading

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Wanted: Cost Control Consultants

Direct-Recovery identifies hard and soft cost transport savings for companies that ship with any major parcel shipper. ‘Hard’ savings are refunds due to late deliveries and billing errors, which are credited to the company’s carrier account. Our primary revenue stream is a split of these savings. Continue reading

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Big Impact of Dim Weight Changes on Shipping Costs

If you ship packages, especially less dense packages, you’re probably aware of the dimensional weight changes that went into effect in January 2011 for both FedEx and UPS rates. To encourage denser packaging, FedEx and UPS dropped the dim weight divisor from 194 to 166. Sounds innocuous enough, but what does it mean? Continue reading

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Should I hire a consultant to negotiate my shipping contract?

Not necessarily.

Freight consultants add value by applying industry insight to a company’s unique shipping profile in order to optimize carrier discounts throughout the negotiation process. Interpreting parcel carrier tariffs can be as daunting as navigating the tax code, so consultants play a role similar to that of tax accountants. Hiring a professional with an inside perspective usually results in better discounts. But there’s a hitch. Continue reading

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Business Intelligence for Parcel Shippers

The story from Business Week, March 2009 was “Business Intelligence Software’s Time is Now“.  The writer tells of companies growing more creative in their use of data-mining tools to extract cost-cutting and revenue-enhancing operational solutions in the wake of recessionary economics. Interesting. But, from our perspective at least, not news.

We assume every company wants to stretch a dollar. It’s not universal, we know, but it’s certainly true for our customer base. Of course, you won’t find the celebrity banking cartel in our customer base either. No coincidence here. But I digress… Continue reading

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Shipping Audit Savings – True Confession

The question is reasonable and inevitable – “How much can I save with your shipping cost recovery services?”

The answer may seem elusive coming from industry professionals, but it’s simply true – “Don’t know”. Yes, we have historical comparisons from ‘similar’ shippers, and estimates by carrier, but until we have the live data in the system, hard estimates are speculative at best. If we overshoot, we pull a bait-and-switch. If we undershoot, we lose the sale.

The simple truth is, we have some customers whose carrier operations and internal logistics are so tight, we scarcely recover anything. For them, and obviously for us, it’s hardly worthwhile. We stay on it because every once in a while something pops. We’ll run dry for 11 months, then recover 20 % of an invoice. Go figure. We’re still in business today because, well, ‘stuff happens’.

Here’s another truth. We ran a 17.6% average gsr recovery rate over 2 years for a good sized client shipping with a regional carrier. True, audited result. But put that on the brag-board and we become snake-oil salesmen. Continue reading

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What does a shipping audit cost?

Prompted by a recent conversation with a customer, it’s time to shed some light on our parcel audit pricing structure.  We consider it a simple gain-share model, but it can be a bit confusing.

We deliver hard and soft cost savings to companies who ship with any major parcel carrier – FedEx, UPS, DHL, TNT, US Cargo, BlueDart, etc. The net result is that our customers pay less to ship parcels than they would without our services. How do we make money? Continue reading

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Parcel Audit Refund Windfall

There’s a potential untapped revenue source for companies that ship with parcel or ltl carriers. As mundane as a parcel audit may sound, it can reap rich dividends. Consider the impact of discovering 6 months of refundable FedEx or UPS charge errors. Continue reading

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NCOF Vegas

This week Las Vegas hosts the National Conference on Operations and Fulfillment – the NCOF Show for those in the industry.  We’re getting a bit teary eyed around here because we launched Direct-Recovery at the same show 11 years ago.

This year I have the privilege of participating in a panel discussion regarding shipping cost control. It’s sure to be riveting and provocative, watched closely by celebrity bloggers everywhere… Continue reading

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