Pitney Bowes.

Pitney Bowes Mail Solutions

Tips on Shipping Costs and Logistics for 2013 and Beyond [Webinar]

by Janet Granger | April 10, 2013 | No Comments

On April 9th, 2013 Pitney Bowes transportation and logistics  expert, John Kruzan, shared current trends in the shipping management environment and provided tips on how to decrease your company shipping costs and increase effectiveness given the current industry trends.


The Shipping Environment – What You Need to Know in 2013 and Beyond – Webinar Playback



The Shipping Environment – What You Need to Know in 2013 and Beyond – Webinar Slides



Status of shipping costs today

  • Transportation costs constitute up to 7% of a company’s expenditures
  • Carrier rates and fees have risen 30% overall since 2007 (with higher impact on small parcels)
  • Supply chains are being lengthened by Internationalization and ecommerce
  • Compliance and regulatory requirements have become complicated
  • The ability to optimize shipments is diminished
  • Monitoring carriers performance is difficult
  • Different departments – transportation, procurement, accounting – are in silos and are not sharing the same information

Given this environment, how is it that, according to the Aberdeen Group, 20% of large shippers are “Best-in-Class.” They have decreased transportation spending by 2.5%, achieved overall “on-time” rates of 97%, and they are measuring their carrier performance weekly. In contrast, the “bottom” performing 30% of shippers have seen costs increase 6%, achieved overall “on-time” rates of only 85%, and are measuring their carrier performance fewer than 15x/year.

The answer, as indicated by the measuring differences, is in habits, visibility and control. Industry experts agree that one of the best ways to control carrier spend is by establishing and enforcing business rules and guidelines around carrier usage.

Questions to ask when implementing business rules around shipping costs and carrier management

  • Can anyone in your organization send a package through an overnight carrier?
  • What tools do your employees have to select a carrier service based on price and delivery objectives?
  • Are they aware of the incremental costs that the carriers assign?
  • Does your company use manual air bills?
  • What time does the package really have to be delivered?
  • Are signatures required or just proof of delivery?
  • Can Thursday and Friday shipments be sent Priority Mail®?

Once you’ve examined the shipping “habits” of your organization, and carefully audited the daily performance of your carriers, you will be equipped to make the tough business rules, decisions, and choices that drive down shipping costs and drive up on-time performance.

What are your specific shipping management challenges?


Please observe our community guidelines when posting comments.

This blog is hosted by Pitney Bowes Inc. By using this blog you agree that you are solely responsible for any comment you post to the Blog and you agree to abide and be bound by the Pitney Bowes TERMS OF USE.

Please stay on topic. We may redirect certain submissions if they are better handled through another channel such as customer service. With regard to the content of any submissions you make through this Blog, you agree to remain solely responsible and agree to not submit materials that are unlawful, defamatory, abusive or obscene. You also agree that you will not submit anything to this Blog that violates any right of a third party, including copyright, trademark, privacy or other personal or proprietary rights.

Pitney Bowes reserves the right to terminate your ability to use and/or submit posts to this Blog. Pitney Bowes may not review all postings and is not responsible for comments posted on this Blog. Pitney Bowes nevertheless retains the right to not post, edit a posting or to remove any postings in its sole and absolute discretion.