Uncover Hidden Express Mail and Small Parcel Costs
Letting your express mail and small parcel vendor costs go unchecked can result in significant financial drain. The critical strategy is to “Discover the hidden fees in your express mail and small parcel services.” Although it might not seem thrilling, the benefits of identifying these concealed charges can be quite impactful. It’s an essential task for ensuring good financial management and keeping your shipping expenses under control.
Dive Deep into Your Shipping Invoices – UPS and FedEx too
Begin with a comprehensive analysis of your express mail and small parcel vendor invoices. When you deeply investigate your company’s shipping services, a revealing picture often emerges, typically riddled with hidden fees and instances of overspending.
Many organizations do not have the time or resources to carry out such a detailed analysis of their shipping costs. With multiple vendors — including UPS and FedEx — for express mail and small parcels across various departments, effectively managing these services can become an expensive affair.
Our company excels in express mail and small parcel cost optimization, among other non-core procurement areas. We utilize national agreements, industry connections, and experts in the field to provide top-tier shipping solutions and services.
After conducting an extensive analysis of your business or portfolio, we recommend the most beneficial customized shipping solutions. We will even oversee the implementation of new express mail and small parcel service programs for you.
Express Mail and Small Parcel Cost Reduction:
- Contract Renegotiations
- Shipping Volume Analysis
- Combining Shipping Services
- Removing Unneeded Service Options
- Streamlining Packaging Solutions
- Invoice Auditing and Dispute Resolution
- Optimizing Shipping Routes and Methods
- Transitioning to More Cost-Effective Carriers
- Leveraging Cloud-Based Logistics Solutions
- Implementing Shipping Expense Management Software
- Consolidating Shipments and Service Providers
- Negotiating Bulk Shipping Rates
For example:
A Fortune 500 healthcare company embarked on a mission to reduce operational costs amid its extreme growth phase, engaging with ACC to tackle its express mail and shipping expenditures. Initially, the client was spending $9 million with an incumbent vendor who, confident in their position, did not engage in competitive bidding or address queries, assuming their business was secure. This complacency opened an opportunity for ACC to introduce a new supplier, leading to significant annual savings of 9.5% or $855K for the client. This strategic move was just the beginning, as ACC revisited the category in 2019, further reducing costs by $750K through enhanced process efficiencies and the implementation of cutting-edge technology that allowed for seamless adjustments in lease cost routing and overall reduced shipping expenses.
The engagement was driven by clear objectives: reducing expenses within the shipping category, enhancing process efficiencies, eliminating blind spots in the supply chain, transitioning to a data-driven decision-making process, and ensuring no disruption to member services. These goals addressed the client’s challenges, including the lack of audited savings for budgeting, inconsistent tracking, difficulty understanding current supply chain processes, and the necessity of department head commitment to maintain focus on adherence. Through ACC’s intervention, the healthcare company saw not only a reduction in costs but also improvements in operational efficiencies and supply chain transparency.
The partnership between ACC and the healthcare company has led to notable successes. Before ACC’s involvement, the client’s shipping volume was increasing by 16.5% annually, with costs rising at 5.9%. Thanks to ACC’s strategic review and process improvements, shipping rates are now 3% below the initial cost per package rate. Moreover, the introduction of bi-monthly audits holds carriers accountable, optimizing shipment speed and rates, and enabling cost savings that directly improve the client’s bottom line. These outcomes highlight the value of proactive vendor management and the adoption of technology in streamlining operations, setting a precedent for continuous improvement beyond the ACC engagement period.
Mail Services Optimization Areas
- Mail service vendor reviews
- Price benchmarking for shipping
- Negotiation of contract terms with shipping vendors
- Analysis and optimization of shipping rates and service levels
- Implementation of shipping software for rate comparison and label printing
- Streamlining of packaging processes to reduce parcel weight and dimensions
- Audit and recovery of overcharges and billing errors
- Consolidation of shipments to leverage volume discounts
- Transition to less expensive shipping options without compromising delivery times
- Evaluation and reduction of accessorial charges and surcharges
- Improvement of shipping zone management to minimize costs
- Optimization of carrier mix
- Enhanced tracking and accountability for parcel delivery and spend
- Implementation of inbound shipping management practices to control costs
- Use of data analytics to identify trends and opportunities for further savings
Rest Assured…
We recognize the potential apprehensions around reducing shipping and parcel costs alongside other indirect expenditures. However, rest assured that:
- Changing shipping carriers is entirely optional, depending on your preference.
- We undertake the intensive efforts required for optimization on your behalf.
- Once our strategies are in place, your organization will see a streamlined approach to managing shipping expenses and processes.
- Leveraging our considerable negotiation leverage and industry expertise, we transform shipping cost management into a strategic advantage for your business.
- Our speciality is navigating the complexities of shipping and parcel cost reduction, ensuring a smooth transition to more economical and efficient shipping solutions without interrupting your daily operations.
Get Started
We collaborate with across sectors and industries, focusing on shipping, express mail, small parcel and other areas of indirect spend.
Allow us to thoroughly analyze your shipping vendors and other indirect expenses.
Experience the advantages of optimizing your shipping and mailing costs without demanding extra time from your team. Our compensation is tied directly to the savings we deliver to your bottom line, confirmed through our exclusive audit process.
Reach out to ACC for a personalized, no-cost savings evaluation.
