There are several regional, small parcel carriers across the country that can offer significant advantages over using UPS and FedEx.
Here are a few benefits:
Expanded Next Day Ground Delivery Area: Regional carriers typically offer significantly expanded next day ground delivery areas. So, more of your customers can benefit from next day deliveries at ground delivery pricing.
Reduction in Shipping Fees: UPS and FedEx assess over 85 different accessorial charges (such as Delivery Area Surcharge and Residential Delivery Fees). These accessorial charges can add up to 28% to the cost of a shipment. In fact, 50% of the zip codes in the continental US are assessed a delivery area surcharge. These zipcodes account for approximately 20% of the volume moving through the UPS and FedEx networks. Most regional carriers do not pass along delivery area or residential surcharges.
Extended Shipping Day: Regional carriers enable you to extend your shipping day and boost productivity by offering later pickup times.
If your operation can benefit from using a Regional Carrier, you should develop sound business rules for incorporating the regional carrier. For example, you might configure your shipping system to automatically select the regional carrier for all supported zip codes. Alternatively, while the regional carrier is most likely to cost less in all covered destinations, you might consider rate shopping between the regional carrier and UPS and/or FedEx for each shipment within the coverage area. This way, you guarantee maximum cost savings.
One regional carrier in particular is OnTrac. OnTrac delivers to a population of over 55 million people in the six largest western states (California, Arizona, Nevada, Oregon, Washington and Utah.) This area accounts for almost 20% of the U.S. economic output. For more information about OnTrac, visit www.ontrac.com.
Other regional carriers include: Spee-Dee Delivery (IA, IL, MN, NB, ND, WI), Lone Star Overnight (TX and OK), and Eastern Connection (from ME to VA) .