Industry News
Alternative Methods for Shipping
By
Aug 16, 2005, 09:10

With the new U.S. Postal Service’s 2006 rate case, filed on April 8 may have direct marketers thinking about alternative methods for shipping. With the 5.4% across the board rate hike it can seem moderate enough for most shippers to deal with, however it still involves assessing dealings with parcel carriers, and seeking new ways to streamline shipping processes.

In today’s highly competitive market, marketers need to be savvy when “shopping” for the most cost efficient, and effective shipping methods. Postal Consolidators, who are typically privately held companies, offer economical ground delivery through three points of entry at the USPS:
· Bulk Mail Center (BMC)
· Sectional Center Facility (SCF)
· Delivery Destination Unit (DDU) or local post office.
The closer to its ultimate destination that the package is dropped off, the lower the cost to the Postal Service, thus the higher the shipper’s savings. Some additional added value the Postal Consolidators offers are: pick up, tracking, expedited delivery, delivery confirmation, and billing.

Consolidators are less affected by the postage increases because only a percentage of their cost is postage-related.

To give an example of a 5-lb. parcel going to Zone 4, the DDU postage rate prior to the
increase was $1.43; with the 5.4% increase, the rate becomes $1.51, just $.08 more for the consolidator to pay. The total delivery rate for this package would go from $4.60 to $4.68, a mere 1.7% increase for the shipper. Consolidators are cost-effective for when shipping high volumes deliveries.

Let’s not however forget the USPS. Even with the new rate increase the USPS still remains a great buy when shipping lighter First Class packages typically under eight-ounces. Another USPS super value is the soon-to-be Priority Mail flat rate of $4.05 for a one-pound package. UPS cannot even get close to this cost.

The bottom line is to always keep in mind there is more than one way to skin a cat. Be certain to entertain all shipping options, with being on time, on spec, and on budget. You and your customers will be the winners.


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