Choosing an express parcel carrier to fulfill your distribution and administration requirements is no easy task. It can be a minefield.
The express parcel and the small freight market is very competitive and offers a variety of services, such as:
You are spoilt for choice because of the number of carriers operating in the marketplace, but this does not always help when making a choice.
Here are just a few of the main express parcel carriers (in alphabetical order)
| Amtrak Express Parcels | Parceline | |
| ANC | Redstar | |
| Business Post | Securicor Omega Express | |
| City Link | TNT | |
| Lynx Express | Tuffnells Parcels Express | |
| Nightfreight | United Carriers | |
| Nightspeed | UPS | |
| Parcelforce | WPS Express |
There are ten areas which we are now going to highlight, starting with....
Invoicing errors
Due to the manual input of consignment data and contract rate information, errors can occur. (e.g. incorrect weights, incorrect number of packages, incorrect account number, incorrect rates). Look out for charges that do not belong to you; the consignment note number will highlight this for you. Check rates against original contract. Look out for unusual surcharges and query them. Check for incorrect weights.
Booking-in charges
If you supply to customers who require a date and time-window delivery (such as a Cash and Carry), you are more than likely paying to the carrier a booking charge. This is even if you book the consignment in yourself. You may be interested to know that carriers charge for this service from nothing to £15.00 per consignment. So it is worth considering this aspect during your rate review, or when considering changing carrier.
Unsuccessful deliveries and collections
Some carriers charge if they attempt a collection or delivery but is unsuccessful, through no fault of the carrier, which is reasonable. It is worth looking into the reason for these failures because you may find that the carrier is at fault for one reason or another. If so you can request a credit or ask for a free-of-charge consignment. If you find the carrier not at fault you can take action to stop any reccurrence in the future - thus saving unnecessary costs.
Collections
If you request collections from a third party for delivery back to your premises or another specified address, some carriers charge an additional amount over and above the normal carriage rates, which can be as much as £10 per consignment. If you use this service regularly and are being charged it may be worth looking at another carrier or renegotiating with your existing one. There are carriers who do not charge any supplement.
Guaranteed services
All express carriers now offer a guaranteed service with a money-back guarantee. The amount you get back can vary according to the carrier used. Some credit all charges, others the difference between the extra charge and the service actually received.
The point to keep in mind is it is down to you the customer to claim, it is not an automatic reimbursement. With some carriers having a 5% + delivery failure rate, its an area worth checking.
Claims for carriage costs
When putting in a claim for a lost or damaged consignment, remember to claim back the carriage charge or request a F.O.C consignment to compensate. Many forget this.
PODs (proof of delivery )
Several carriers make of charge for providing a hard-copy proof of delivery. If you require this evidence to obtain payment from your customers and are currently paying for this service, it may be worthwhile looking at other carriers who do not charge or negotiate the charge with your existing carrier. This is also a point to keep in mind if thinking of changing to another carrier.
Correct weight
Putting the correct weight on a consignment is important if you are on a weight rate, as this figure will be input to calculate the charge. It may be worthwhile considering purchasing scales if your staff are guessing the weight or putting down a set weight. Every kilo over could be costing you.
Carton rate
If you are on a carton rate it may be worth considering the size of carton you are using at present. Can you reduce the number of cartons when shipping multi-shipments by using a larger carton? When looking at this check the maximum weight and cube permitted by your carrier in their terms and conditions of carriage.
Pallets
If you purchase pallets for distribution you will know that they are not cheap. With this in mind if you currently send your packages on pallets to assist carrier handling, ask them to give you a replacement, or ask if they can supply a number for your needs. Good to set up a pallet log.
In conclusion it is good to review and compare carrier rates every 6 months or at most every 12 months, even if you are happy with your current carrier, but especially if your consignment volume has increased. You may then be able to negotiate a rate reduction or an enhanced service at no extra cost.
If you change your carrier or after negotiation with your current carrier it is prudent to ask for a price stand-still for 12 months. Some carriers can up the rates every two or three months. This could cost you.