With the e-Commerce push businesses are now under increasing pressure of quick doorstep delivery of packages to customers. In the era of same-day and next-day delivery e-Commerce companies are tapping into affordable and efficient mail carriers for their shipping needs. Companies are now adopting multi-carrier shipping strategies to keep up with the rising demand and reduce shipping costs.
Multi-carrier shipping services are becoming popular among e-Commerce businesses and are replacing single carrier shipping strategies. According to Supply chain management review, companies who ship with multiple carriers save 36% on overall shipping costs compared to those who only ship with a single carrier. To choose the shipping needs for your business you need to know the difference between multi-carrier shipping and single carrier shipping.
What is single-carrier shipping?
When a company chooses a single carrier company for all its shipment it is called single carrier shipping. Single carrier shipping strategies were more prevalent before COVID-19 and companies negotiated exclusive shipping contracts with major carriers for all their parcel shipping to customers, partners, distributors, etc.
What is multi-carrier shipping?
Multi-carrier shipping strategy is the most common shipping strategy used by companies now. It refers to using multiple carrier services to assist with package delivery instead of relying on a single carrier to deliver all the packages. This way companies can tap into both national and regional carriers to deliver packages to your consumers. For example, a company will use the services of Blue Dart, FedEx and DHL for its shipment.
Why are multi carrier shipping strategies gaining prominence over single carrier shipping strategies?
With the rampant supply chain disruptions during COVID-19, companies started to look for more efficient and affordable ways to ship their products with less disruptions. When large e-Commerce companies were promising same-day deliveries other companies had to decrease their delivery time to keep up with the competition. Increasing shipping options became a priority for all companies.
Let us consider some factors that makes multi carrier shipping decidedly better over single carrier shipping:
- Keeping up with the rising online sales demand
A single shipping provider is good for early stages of business because order volumes are not high enough to sign up for more than one carrier service. When the business expands and online sales increase, you need to diversify your shipping strategy. Using a multi carrier shipping strategy will help to ensure efficient order fulfillment because there are less disruptions when you choose multiple carriers.
- Cost effective
Opting for single-carrier strategies means businesses should go with the shipping carrier’s service and rates. With a multi-carrier strategy, businesses can compare prices of different shipping carriers and take advantage of the best shipping rates and services from multiple courier partners. This leads to cost savings and improved customer satisfaction.
With a multi-carrier shipping strategy, different delivery locations, package sizes, and so on come at different shipping costs. Therefore, it helps businesses to pick and choose providers as needed to keep shipping costs as low as possible. This strategy will help you choose prices based on shipment weight (I.e., volumetric weight vs actual weight), origin, destination, and speed.
- Take advantage of different carrier features
Every shipping provider has their own features to suit different types of parcels and customers. This means that some offer you faster delivery time and the best customer experience for every order while keeping rates low. Customers are more likely to choose services that provide fast deliveries and adhere to the delivery timelines.
Adopting a multi-carrier shipping strategy will help reduce your logistics costs and let you tap into the pool of regional carriers, which will lead to faster delivery times. If you are looking for a trusted logistics partner visit Tata nexarc’s Logistics, a platform that connects small businesses with trusted logistics companies to speed up delivery times and improve customer satisfaction.
Also Read: Importance of DDP in shipping