Managing small package freight optimization or parcel routing optimization can seem overwhelming. That is until your company looks at how a global TMS lowers freight spend by improving parcel routing efficiency.
Misconceptions of Multimodal Parcel Routing
- Parcels are too small to optimize effectively. Not true. With proper multimodal parcel routing options, land, air, and rail can be used to ensure that these parcels make their way to their destinations faster and more efficiently. Not only does that free up some shipping options with convenience and creativity, but it also helps to ensure that parcels are in the hands of the people who need them in ways that are more efficient and effective than ever before.
- Parcel carriers generally cannot offer better rates. Parcel carriers can offer better rates if the packages go through consolidation into LTL or FT and are moved as a group and not as the individual parcels themselves. This essentially provides a “bulk discount,” even if the parcel routing didn’t start as one combined group of shipments from a specific company.
- Prior reports have suggested customers are often willing to pay premium rates for higher-cost parcels if those parcels are delivered more quickly. However, that is the exception and not the rule. As reported by DC Velocity, “NRF study found that 75 percent of consumers surveyed expect delivery to be free even on orders under $50, up from 68% a year ago.” So, better parcel management is the only thing to consider going forward.
Global TMS Capabilities Enable Similar International Freight Management
Because so many clients want their parcels faster, it’s essential that your company understands and embraces TMS functionality, including robotic process automation and how that can enable strong parcel routing management. You can lower your freight spend with this system, because parcels that travel together can command better rates — especially when clients spend more to get these parcels faster.
How Parcel Routing in a Global TMS Keeps Freight Spend in Check
- Proper routing of shipments from the beginning, to minimize errors.
- Meeting regulations for the carrier to avoid rejected shipments.
- Lower costs of training, with a unified system for employees.
- More on-time deliveries for stronger client relationships.
- Robust parcel movement for on-time efficiency.