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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.

For one decentralized customer the Air to Ground Analysis identified a full 35% reduction in shipping costs attainable by using a very simple rate shopping tool available in the Direct-Recovery interface. That’s 35% of transport spend that goes straight to the bottom line.

Standard savings? No, but attainable savings in the more egregious cases. The role of Direct-Recovery is to discover these operational inefficiencies and provide the tools to correct. We do that for free given our revenue model. It’s the customer’s job to fix the problem. These are the soft cost savings – operational changes you make based on the information we provide.

Why do shipments go Express unnecessarily? Sometimes it’s about perception. Air is ‘more important, more valuable’, and that’s worth the premium. That’s fine. These shipping expenses are incurred by well-informed shippers, making sensible choices.

Sometimes, however, it may be the end retail customer who selects Express shipping without the knowledge that Ground delivers in the same time. That customer selection is passed to the manifest system which routes Express, and hasn’t the logic to override. That’s a system shortcoming.

Sometimes the source is many individual shippers accessing a central carrier account, without any rate-shopping tool, or with outdated software, or outdated systems. Regardless of the cause, a quick review of the actual cost is essential for the well-informed parcel shipper.

 

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