Harvey Software Parcel Shipping Blog

Services Like UPS Mail Innovations® Offer Great Rates. Now What?

2009-06-30T00:13:00.014-04:00

Have you been offered (or maybe read about) the new services that combine the package carriers' service with the post office doing final delivery? There are several. Since the UPS Mail Innovations service is a good example of these; I'm going to discuss that service that handles packages up to one (1) pound. The carriers will give you the pros and cons of the service but there is no doubt they do have really appealing rates. But how do you make the service work best for you?

There are obstacles. The special rates you get with this service may not be supported in your order management system so the order system cannot choose the service for you. You could pre-sort your packages after packing, but this can mean double handling packages and missing packages that could ship with this service and losing the maximum savings. This is where a shipping system can help. Here is how our CPS™ Shipping System handles this.

CPS seamlessly integrates UPS Mail Innovations into the CPS shipping software. This lets CPS users choose UPS Mail Innovations for any package, or shipper can let CPS RateBots™ automatically rate shop and choose UPS Mail Innovations so CPS users save with every qualifying package they ship. This type of seamless integration puts CPS users in the driver's seat. Anytime a shipping system lets a shipper take advantage of cost savings, the shipper wins.

Check with your shipping system provider to see how your system can work with these services. Visit http://www.HarveySoft.com/ if you would like to know more about CPS.

Reconciling Your Carrier Bill

2009-06-04T16:24:00.002-04:00

When is the last time you checked your carrier bill? Not just looking at the bottom line to approve the check, but actually checking the bill to reconcile it to your shipping? If you are like many, the carrier bill doesn't easily match up to your shipping records, but you pay it anyway and hope it is right. Add multiple carriers to this, mix in special rate contracts with one or more carriers, and you have a very interesting accounting situation. Now, how do you make those numbers make sense?

Shipping systems can help with this. I'll use our CPS™ shipping software as an example. CPS has settings (we call them environment variables) that can send order reference data to the carriers and this reference data will appear on your bill. CPS also has historical shipping reports that can be selected by carrier. If you have a contract with special rates for a carrier, CPS can also show your company's specific rates, not just the carriers' published rates.

But how does this help? First, you can print the historical report for the billing period, by carrier, so you can pretty easily check the amounts on your bill using your company's rates. Unusual "after delivery" charges, like Saturday delivery and address correction charges (we have a module to help with this, but that's another article) may have to be factored in, but you can see pretty quickly if the bill seems right. Next, if you have shipments you need to verify, the reference data you send to the carrier lets you find the order in question in your records. Of course, the CPS shipping history stores information about the shipment, too. CPS also provides department reports to keep track of shipping costs according to your company's cost centers. Use these report and reference tools and you can take a knowledgeable look at your shipping bills.

Is it still an effort to reconcile a carrier bill? Yes. Can tools like these make it easier? You bet! Look for these tools in your shipping system, or visit http://www.HarveySoft.com/ if you would like to know more about CPS.

Or, you can just trust the carriers…

Why Am I Being Charged a 70 Pound Rate for My 1 Pound Box?

2009-05-12T15:39:00.002-04:00

Dimensional weight is how the carriers bill for the size or volume of a package in a shipment, not just the package weight. The concept is simple. Think of shipping the proverbial 1 pound box of feathers. It's a big box, but there is little weight. And that's the problem - too much space taken up for too little revenue.

To address this, dimensional weight was born. Carriers now want the box size along with the box weight so they get the revenue for the space as well as the weight. How does this affect you as a shipper? It's pretty basic - if you don't account for the correct box size and weight, you can get some real surprises on your carrier billing.

Providing the dimensions is important so that you know how much it will cost to ship a package. Carriers also categorize different box sizes into different dimensional price groups, so it's sometimes more complicated than just a simple calculation.

Shipping software systems handle this situation so that you are not ambushed by extra charges after you ship. Typically, you enter the box measurements, and then the shipping system takes over. Some shipping systems, like Harvey Software's Computerized Parcel System (CPS™), let you keep a data file with your box sizes so you only have to choose the right box type instead of entering the box dimensions every time.

Tired of Playing "Commercial/Residential Address" Roulette?

2009-05-08T16:59:00.003-04:00

Address problems come in two categories. First, when the address is wrong, even if the customer typed it themselves. (When you have an online store, you discover that not everyone actually knows where they live!) Second, when you have pages of residential delivery fees that you didn't expect and did not charge to your customer. The first problem means you can have undeliverable packages (or packages with expensive address correction charges) making unhappy customers. The second problem of unexpected fees makes you unhappy. An additional layer to this problem is that address verification programs can cost in the thousands, so how can you make a solution for these problems cost effective?

Here is one way to solve this - address verification capability right in your shipping system. For example, Harvey Software makes an Address Verification Module (AVM) for its CPS shipping software. The AVM uses the USPS CASS certified database and: 1) Makes rate shopping happen correctly between residential and commercial services; 2) Warns you if the residential/commercial choice is incorrect; 3) Tells you when an address doesn't exist; 4) Lets you know that the address exists but is missing some key information such as suite number apt. #, etc.; and 5) Standardizes addresses to match the USPS CASS certified database. The cost for the AVM is just $199.95.

CPS is not the only shipping system that has this available, although the CPS AVM is definitely one of the least costly. Address checking in your shipping system is another way a good shipping system can help your company and put money on the bottom line.

Success Story - From Start Up to Leader

2009-04-22T17:14:00.003-04:00

Alibris has announced that it grew sales for its sellers in the 2008 winter-holiday season by more than 8%, even as online book sales shrank 1% during that same period, according to reports. No surprise here.

From startup just over 10 years, today Alibris lists over 100 million volumes from over 15,000 book sellers participating in the Alibris network, with almost 1 million volumes stocked in their warehouse.

Early on, Alibris identified a need for the advanced technology required for low-cost logistics capabilities and a smooth, consistent order flow. Alibris chose Harvey Software's Computerized Parcel System (CPS™) to act as the heart of their shipping operation, including shipping with UPS.

"CPS provides robust technology as a solution to these issues."
VP of Operations
Alibris
http://www.alibris.com

* * * * * * * * * * * * *

Look for these advanced benefits in a shipping system to save money and optimize the daily shipping process:

Domestic and International shipping services supported

Automatically resolution of residential and commercial address status

Easy integration with in-house data and existing systems

Automatic determination of least cost way to ship using shipper created rate comparison codes

Easy to use cost monitoring reporting so users can offer flat rate or free shipping without worry

Getting the Best Rate for Every Package You Ship

2009-04-22T13:39:00.002-04:00

Getting the best rate for each package involves several factors. One carrier may be best for lighter packages, another for heavier packages, still another for residential deliveries - plus you might get special incentives for your ground or air packages. Master these variables and you will control shipping costs like never before.

Satisfied with your current shipping system or could it use an update? Here are three things to look for so that you get the best for every shipment.

First, your shipping system needs to show you your company's actual shipping rates and have them available as each package is shipped. Make sure your shipping software company can work with the rates your company negotiated with the carrier. For the USPS, be sure your shipping system supports the Retail/Commercial Base/Commercial Plus rates from the USPS.

Next, you need accurate addresses. In addition, when you are shipping to residences and businesses, you avoid unexpected charges if you can determine the address classification as well check the accuracy of the address. Shipping systems with address checking modules can help with this right at the time the package is shipped.

Finally, you need a quick way to accurately compare between your company's actual or contracted rates with the carriers. You are not getting the whole job done if you are just comparing the carriers' published rates. Let's use our CPS shipping software with its RateBot™ feature as an example of how this can work for you. RateBots are automatic rate comparison codes to let you easily control price shopping. For example, set up a RateBot to get the best price for ground delivery service, then use that RateBot to price shop all of your ground packages. CPS even optionally determines if the address is commercial and residential, so the entire "best rate" process is hands-off, automatic and takes many factors into account. You can set up as many RateBots as you need, such as one for ground service, another for the best price on next day service, etc.

Harvey Software's CPS™ shipping software helps with each of these three "must have" shipping system items. Look for these features like these in your shipping system and start putting each carrier’s rates to work the best for you.

Is there a backup?

2009-03-27T17:42:00.002-04:00

That's one computer question that no one likes to hear. It’s even less popular when the answer is "No". This is normally followed by either silence or bad words. Most of the time, computers, as reliable as they are, still fail without any warning. "It was working, but then…" And after that starts either a nightmare or the relief that the planned backup system has saved the day.

You can make local backups, you can use an online service, and some applications (such as our CPS™ shipping software) have a built-in backup to save those specific applications. Local backups might be set up by your network person, or you might just copy your important files to a file server using a backup application or Windows Explorer or the Windows backup program. Online backup systems include Carbonite.com and Symantec. Finally, some applications have built-in features to backup themselves. So there are solutions out there to help make your data safer.

But it's not just a computer failure. Data corruption due to a power failure (we'll cover this in another Blog), files that are deleted accidentally (or otherwise), and other things happen. A current backup can save the day. Be ready.

Summary of Important 2009 Changes by the Major US Parcel Carriers

2009-02-18T09:00:00.001-05:00

Now that the dust has settled on this year's shipping updates, here is a summary of major changes by each carrier. UPS and FedEx changes were effective 01/5/09 with the US Postal Service® changes effective 01/18/09. I've also listed any changes in our CPS™ shipping software that go along with the carrier changes.

For FedEx® Express, FedEx Ground and FedEx Home Delivery shippers, there are new prices for 2009. This includes new rates for shipping and for services like COD, etc, as well as new rural surcharge areas. In addition to adding these changes, CPS includes an updated, smoother end of day closeout procedure for FedEx.

For UPS®, there are new prices 2009 UPS rates and services. UPS also has new rural and extended area surcharges. International UPS shippers will benefits from new shipment validation of international shipments, plus the UPS international Paperless Invoice (a contracted service) is also updated. CPS adds all of these plus an updated end of day closeout for UPS.

Those using the US Postal Service must consider several important changes. There are new domestic package rates and new discount classifications - Commercial Base and Commercial Plus. Commercial Plus is the highest discount category. Only those shipping the highest volumes (100,000+ per year) can take advantage of the Commercial Plus discounts. Starting 1/18/09, if you manifest you must use USPS® Commercial Base domestic rates. Retail rates are no longer accepted on the manifest. If you use a manifest, each of these Commercial price groups provides better prices, but it's only for domestic US shipments.

International USPS shippers also have a rate discount category, Commercial Base. However, Commercial Base rates for international shipping are only available when using an online postage service like Endicia. With discounts up to up to 10% for some services, this is a great option for international shippers.

Finally, a new small flat rate box is now available for domestic and international shippers. All of these money saving rates, requirements, etc., are in the newest CPS.

The newest rates for the regional carrier SpeeDee Delivery are also included in CPS. SpeeDee added a new account format which is also support in the 2009 version of CPS.

That's what's new so far. Coming up are changes for USPS shippers that will be effective on 05/11/09. More info on those as it's available.

The "Other Side" of Carrier Fuel Surcharges

2009-02-17T15:00:00.001-05:00

When fuel surcharges were approaching 35%, it became very important to that surcharge amount when making rate comparisons. After all, that's a BIG percentage to miss in rate shopping. With the drop in oil prices in the last few months, the previously high is now 1%. That means the fuel surcharge is still important to consider, but for the opposite reason. The carrier that would not win the price comparison several months ago might be the carrier to choose today.

The question is how do you keep up with these rate factors that do change monthly and can change a lot in a relatively short period of time? Today's multiple carrier, automated shipping systems can factor in the fuel surcharge and the commercial or residential status of an address when making rate comparisons. Accurate, even automatic, "best rate" shipping helps tremendously in dealing with these ever changing shipping costs. Getting the best price for every package may be even more important today than ever, especially since when a customer thinks shipping is too high, you might lose the sale.

Use CPS™ with Endicia® and Get the Best Shipping Rate Every Time

2009-02-16T22:48:00.002-05:00

The "bottom line" is always important, and even a little more so when times are challenging, like today. Paying more than necessary for shipping comes directly off the bottom line. Understanding the new post office rates (effective 01/18/09) and how to best use them is one way to keep the bucks on the bottom line.

The post office now has three domestic rate price levels: Retail, Commercial Base and Commercial Plus. Commercial Plus is for the highest volume shippers. Commercial Base rates are available to everyone using Endicia or for those manifesting. Retail rates are the "over-the-counter" rates for stamp and meter users. For international shippers, those using Endicia receive discounts up to 10%, a discount that even those manifesting do not receive. If you use the post office, you definitely want the discounts and Harvey Software's CPS shipping software supports them all. Use CPS with Endicia and you can take advantage of all of the USPS discounts.

If you use more than one carrier, you probably know that rate shopping can be difficult. The "residential or commercial" factor that comes into play for those shipping to residences complicates rate shopping more, but CPS can automatically determine the residential or commercial status when rate shopping. This lets you price shop and use Endicia to the best advantage for every package with the best rates every time. Isn't that how dollars stay on your bottom line? For more on CPS with Endicia click here...

Possible Fines and Prison Time Penalties Effective 02/01/2009

2009-01-30T14:47:00.003-05:00

POSSIBLE FINES AND PRISON TIME EFFECTIVE
FEBRUARY 1, 2009 FOR NON-COMPLIANCE WITH INTERNATIONAL SHIPPING REQUIREMENTS - In June and September, we told you about the Census Bureau change, effective July 2, 2008, requiring mandatory filing of export information through the Automated Export System (AES) or AESDirect [http://www.aesdirect.gov/]. This is for all shipments where a Shipper’s Export Declaration (SED) is required. The "adjustment period", delayed from October 1, 2008 to February 1, 2009, ends tomorrow. Starting February 1, 2009, enforcement of the new requirements, including the potential fines and prison time for non-compliance, will start. The fines and prison time are significant - up to $10,000 and 5 years per shipment.

Some history-

If Electronic Export Information (EEI) is required for a U.S. export, the EEI must be electronically filed to the Automated Export System (AES) by the U.S. Principal Party in Interest (USPPI) (normally this is the exporter) or their designated agent.

There are more rules about when EEI is required than can be covered well here. UPS, FedEx and USPS want different information about EEI, some of the exemption numbers have changed, and there are many other requirements. Contact your carrier(s) so they can advise you about how to comply with this new requirement. The USPPI can file for themselves directly with AESDirect at http://www.aesdirect.gov/. Carriers may offer other filing method options. You will find additional information about this at [http://www.census.gov/foreign-trade/www/].

Green Packaging Can Save You Some Green!

2009-01-05T17:46:00.002-05:00

Happy New Year!

For our first post this year we want to point out an on-line slide show about Green shipping we saw during the holidays at http://www.treehugger.com/. It was a neat slide show that you can see by clicking here.

There are many more reasons to look at your packaging. In addition to all discussed in the slide show, cutting down the weight and size of your packages can save a bundle in oversize and regular shipping costs. Having the right size packaging can also make the difference in which carrier you choose to get the best price.

More Turn to Internet Retailers for Holiday Shopping

2008-12-18T14:17:00.002-05:00

Retail sales figures may be down this year for many retailers. We are told customers are buying less. But, there is one strong trend that we are seeing that is very positive. There are definitely more buyers purchasing on the web this year!

How can that be when overall retail sales are down? We are seeing a 2-5% increase in unique people tracking packages daily as compared to last year’s volumes. This means that even though volumes shipped are down as a whole, more people are turning to the web for their holiday shopping than ever before. We feel this is a very strong indicator for the future of the Internet retailer.

We also continue to receive reports from some of our clients that they not only have more customers buying this year, they also report increased sales. In fact, clients who used our CPS flat rate calculator to employ our flat rate and free shipping strategies were among the majority of those reporting increased sales. We find this very positive, too.

Yet Another Reason to Consider Flat Rate Shipping

2008-12-17T14:34:00.002-05:00

As stated in a recent article at InternetRetailer.com, the U.S. Postal Service web site is still having problems with its web shipping tools. This release also states malfunctioning USPS web tools failed to report the USPS price causing more expensive rates of other carriers to be displayed for those that rate shop on their sites. This caused a measurable increase in shopping cart abandonment. This is yet another example why flat rate or even free shipping is better than trying to use real time rating at the time of order processing. Not to mention the fact that these shipping methods can even help you close more sales and increase the amount purchased!

Now that we are getting to the end of the holiday shipping season, we are getting reports from several retailers that have used our suggestions on how they handled shipping this year at their web sites. Those businesses that decided to try flat rate or free shipping had very positive things to say. They are using the techniques outlined in our free whitepaper found at BusinessShipper.com. The same retailers that have had good results are telling us that even though they see the negative effects of the economy on how much people are spending, they are also seeing more customers buying on-line! Just think how these businesses would have done in a more positive year…

Important Holiday Dates for Shippers

2008-12-15T16:55:00.002-05:00

As we end up 2008 and begin 2009 there are some important dates that all shippers should be aware of. The following are the last days domestic holiday packages can be shipped for on time Christmas deliveries with USPS:

December 16, 2008 Parcel Post
December 20, 2008 First-Class Mail/Priority Mail
December 23, 2008 Express Mail

USPS International delivery schedule can be found at the link below:

http://www.usps.com/holiday/shippingcalendar.htm?from=home_ftpromo&page=holidayintlmaildates

UPS and FedEx pickup and delivery information can be found at the links below:

http://www.compass.ups.com/article/article.aspx?id=2289

http://www.fedex.com/us/holiday/shipping/lastdaystoship.html

In addition to holiday delivery schedules there some other dates that are rapidly coming up. In January many carrier rates and services will be changing. The following are the dates these changes take place.

FedEx

January 5, 2009 Rates, Fuel Surcharges and Services change. For more on these changes visit:

http://www.fedex.com/us/rates2009/index.html

UPS

January 5, 2009 Rates, Fuel Surcharges and Services change. For more on these changes visit:

http://www.ups.com/rates/

USPS

January 18, 2009 Rates and Services change. For more on these changes visit:

http://www.usps.com/prices/pricechanges.htm?from=home_ftpromo&page=newshippingprices

All Harvey Software CPS shippers will receive the rates and service changes by download and will automatically reflect the new carrier changes.

Make sure to mark calendars with all these very important dates!

We here at Harvey Software all wish everyone a happy holiday season and a prosperous New Year!

More Profits for Companies that Ship in December

2008-11-24T15:27:00.003-05:00

Would you like to save over 10% on your air shipping and almost 1½% on you ground shipping? It doesn't look like there has been much notice about this yet, but on December 1st, the fuel surcharge for the two largest package carriers will drop significantly for both ground and air service. If any of your shipping can wait until that December 1st pickup date, you will be charged a lower shipping rate due to the lower fuel surcharge. So, if you absolutely, positively have to ship a package before Thanksgiving, then it's got to go. But if you can wait for that Monday pickup, the savings are significant. This could mean the difference between a good and great holiday sales profit!

Looking at International Packages Damaged in Customs

2008-10-24T14:12:00.001-04:00

Recently we had a shipper neatly roll up and send photographs from the US to Canada using a large Mail Tube. When the photographs arrived at their destination it was discovered that the tube had been opened and the photographs had been folded into thirds and placed back in the tube. Naturally this destroyed the photographs. With some investigation we discovered that the tube had been opened in Customs and that was where the pictures had been folded and placed back in the tube. But that was not the end of the problems for the shipper and recipient.

Unfortunately the recipient did not save the tube. When they made the claim for the damaged contents, they were unable to collect for damages in Canada. This left the shipper to deal with our carrier of choice, and they eventually received an amount that covered only some of their costs.

Hearing all this made us think, “Is there a difference between shipping internationally with all the different carriers when it comes to dealing with customs damages?” The following is what one of the commercial carriers told us during our investigation:

“Any Customs officer can open any package they choose regardless if it is an export or import. The only exceptions are diplomatic bags/pouches. The difference between shipping with us is the fact that one of our employees opens the package and reseals it, where with other carriers, the Customs officers works alone. In the case of our package, should the contents be damaged by a Customs officer, our employee will notate it and the customer (be that consignee or shipper) will have recourse with the government to file a claim.”

The good news is we were also told by this carrier that this does not happen very often. At least for them, in all cases where it did happen they noted that the Customs officer included a claim procedure inside the package. (Something our shipper in the above example did not have happen.) The alternate carrier did say that the Customs officers generally are very respectful of the contents and do take care not to damage goods.

After our investigation we have found that there is a difference. We must package our international shipments so they can be easily inspected by Customs regardless of carrier. We must be aware that there is a difference in how your products could be handled and you should check with your carrier representative to know for sure. We have been told by several industry people that the inspection rate is about 6 percent for Canadian shipments although the government has mandated 10 percent. More on this subject can be found at the links below or at your carrier’s web site:

United States Customs: http://www.cbp.gov/xp/cgov/trade/
Canada Border Services Agency: http://www.cbsa-asfc.gc.ca/

We Always Use the Post Office...It Costs Less…Or Does It?

2008-10-16T15:33:00.004-04:00

We hear this phrase almost daily any more. And yes, many times this is a true statement, but our CPS customers are finding out that this is a very bad assumption. In fact, using only one carrier to ship your products can result in much higher costs than you could ever realize even if you are shipping only a few packages per week!

A good example of this is when one of our employees recently decided to ship a large flat box that weighed 4 pounds. Like many of our customers, he first checked the rates for shipping it using USPS Parcel Post because he incorrectly assumed that they were the cheapest. He found that the cost was $63.23 because of the package dimensions and it would be delivered in 2-9 days. This seemed very high since the shipping cost was nearly as much as the value of the product. He then decided to let CPS shop for the best price and service. To his surprise he discovered that by using standard UPS Ground rates the same package would be delivered in 1-5 days and would only cost $12.81. This is a cost savings of $50.42 for a single package!

So you say, I will look at each thing I ship and determine the best way. After that I will always use the best way I discovered when I ship that item. This is another false sense of security concept. With things like fuel surcharges and prices changing constantly the results of this decision can be costly, too. This points to the fact that automated systems for doing pricing on a box by box basis optimizes savings and is your only real choice to keep from over-paying in today’s fluctuating economy.

If you want to minimize your shipping costs and maximize your profits on every box you ship, you need to have access to multiple carriers and shop between them for each and every parcel. This is especially true when you receive carrier discounts because this, too, can have varying results depending on many factors. The savings you will receive by employing the right tools will easily pay many times over for any solutions needed to get this done in an automated fashion.

Carrier Fuel Surcharge Opportunity for the Holidays

2008-09-23T16:26:00.002-04:00

With all the negative economic issues affecting retail buyers today, many companies are questioning how holiday sales will be this year. We feel that despite an overall retail sales decrease, Internet sales will be higher for 2008. We also feel that these sales will be spread over many more retailers than in years past. For many it could be tough. Many retailers who did not sell on the Internet in past years are now turning to Internet retailing as a way to increase overall retail sales. Many of these are huge, well funded companies. The reason for all of the interest is mainly due to energy costs. Experts feel that more buyers will be shopping from their PCs rather than driving to stores in 2008. With many more established Internet retailers creating a much more competitive market this holiday season, everyone will need to be more innovative to survive.

Keeping this in mind, we have noticed in the last week that the major carriers have announced a decrease of their current fuel surcharges, starting October 6, 2008. This decrease in cost could be an opportunity for you to increase your company's sales right now. With the uncertainty in the energy market, it's possible these prices may not be around very long. To see examples of the decreases, you can visit the UPS and FedEx Fuel Surcharges links on this Blog page.

Now you ask, "How can I benefit from this carrier fuel surcharge decrease?" That is easy. You need to focus on offering deals to your visitors to purchase heavily from your web site during the month of October.

Offering a lower flat-rate (or even free) shipping for volume purchases is a great special to take advantage of this opportunity. If you are a CPS user, now is the time to use your Flat Rate Report to help you determine the right strategy for flat rate or free shipping. We feel this is a good time to get a jump on the holiday market before the fuel surcharges increase again. Let's face it - the odds are in favor of them going up again. And if that's wrong, you still got a jump on 2008 holiday sales.

New International Shipping Document Requirements Mandatory for October 1, 2008

2008-09-10T14:32:00.002-04:00

Back in June, we wrote about an upcoming change effective July 2, 2008, that the Census Bureau would require mandatory filing of export information through the Automated Export System (AES) or AESDirect. This is for all shipments where a Shipper’s Export Declaration (SED) is required. Beginning October 1, 2008, the "adjustment period" is over and there are fines and potentially prison time if these filings are not filed accurately and on time. The fines and prison time are significant - up to $10,000 and 5 years per shipment.

Some history-

The changes are in the Foreign Trade Regulations (FTR) that affect the Shipper’s Export Declaration (SED) (now known as Electronic Export Information - EEI) procedures. The new Regulations became effective July 2, 2008. By October 1, 2008, if EEI is required for a U.S. export, the EEI must be electronically filed to the Automated Export System (AES) by the U.S. Principal Party in Interest (USPPI) (normally this is the exporter) or their designated agent.

There are more rules about when EEI is required than can be covered well here. UPS, FedEx and the USPS want different information about EEI, some of the exemption numbers have changed, and there are many other requirements. Be sure to contact your carrier(s) so they can advise you about how to comply with this new requirement. The USPPI can file for themselves directly with AESDirect. You may also find that the carriers offer other filing method options.

You will find additional information about this at the U.S. Census Bureau web site.

Handling Carrier Strikes and Other Service Disruptions

2008-09-02T14:12:00.004-04:00

Recently, the 12,000 member Teamsters Local 705 in metro Chicago authorized a strike against one of the major carriers. Although an agreement was reached just hours before deliveries stopped, it reminded me that there is another important aspect of a multiple carrier shipping system - carrier choice. Sure, carrier choice in your shipping system gives you the best price for each package and more negotiating power with the carriers at contract time. But "best pricing" is in second place compared to making sure your packages get shipped.

Labor problems are not the only reason a carrier may stop picking up your packages. What about weather like hurricanes and winter storms? If a carrier stops picking up your packages, whatever the reason, you need to do something immediately. If packages aren't flowing out, then money is not flowing in. Even a one day interruption is disruptive, and you never know when it will be over until it's over (with apologies to Yogi!). If you miss just one shipping day, you could be facing expensive service upgrades when you ship the next day to you meet promised delivery times.

When an interruption becomes extended, history tells us other carriers may not even accept new customers to prevent overloading and poor service to their current customers. Even if you have selected a "primary" carrier, consider giving another carrier some packages each week so you have an alternate carrier available if the worst happens. As an example, with the CPS shipping software, you simply change the three carrier initials and you are immediately shipping with your alternate carrier, printing carrier accepted labels and sending them accurate data for billing and tracking.

Strikes, weather, etc. are "worst case" situations, and a shipping system with carrier choice can do more than just save money, it could save your business.

UPS® Has Issued a New Sustainability Report

2008-08-29T10:44:00.002-04:00

One day after our Blog posting on “How You Can Save Oil”, UPS released its sixth annual Corporate Sustainability Report with progress reports on the company's economic, social and environmental performance. The report is posted at sustainability.ups.com.

Of special interest to those that are looking at their shipping impact on foreign oil use visit the Environmental Section (PDF).

How You Ship Can Save Oil

2008-08-28T17:02:00.004-04:00

I find it very interesting that T. Boone Pickens, an oil man, is promoting alternate energy sources. I am sure there is a hidden profit motive, like drilling for and selling natural gas, but I will have to admit that he makes some very valid points. The PickensPlan can be seen at his site located at http://pickensplan.com/. Some of Mr. Pickens points include the fact that in 1970 we imported 24% of our oil, but today that figure is 70% and growing! He also points out that our use of oil amounts to $700 billion dollars leaving our country this year alone. That's four times the annual cost of the Iraq war. This is a huge loss of wealth and we contribute to this problem every time we ship something!

In making his argument for change, Mr. Pickens offers some interesting ideas that we think can even be applied to parcel shipping. As you promote your products and ship parcels every day, you can help by directing customers to make the right choice. For example, promoting ground shipping over air shipping decreases our use of foreign oil.

Choosing carriers and services within your chosen carrier’s portfolio of offerings can also make a difference in how much oil you use to ship your parcels. Many carriers have already started to make changes. For example UPS has announced the deployment of 167 compressed natural gas trucks which supports Mr. Pickens plan. And USPS is moving to E85, biofuels and fuel cell vehicles for their delivery vehicles, all of which decreases our dependence on foreign oil.

These are great beginnings but as a parcel shipper you need to fully think about and offer shipping methods that truly help us stop the drain on US wealth by the use of foreign oil, even when shipping domestically. Some solutions will help. Others solutions like E85 and biofuel have caused other issues that you need to take into consideration.

If you would like to learn more about this subject so you can do your part, I recommend you visit the sites below:

PickensPlan
http://pickensplan.com/

UPS
http://www.community.ups.com/environment/main.html

FedEx
http://about.fedex.designcdt.com/corporate_responsibility/the_environment

USPS
http://www.usps.com/green/eco.htm

EPA SmartWay
http://www.epa.gov/smartway/

GreenBiz.com
http://www.greenbiz.com/

Treehugger.com
http://www.treehugger.com/

A Reliable Shipping System Must Include a Good UPS

2008-08-22T10:48:00.006-04:00

How can you give your shipping system an additional "edge" to be as reliable as possible? Use a battery backup (or UPS - uninterruptible power supply) so that temporary power interruptions do not affect your shipping.

Our CPS(TM) shipping software is very reliable (with great “Economic Stimulus" pricing through 8/29 - a shameless "plug") but a power problem in the middle of shipping a package can create problems, including an unnecessary system crash. A battery backup gives you time to shut down your computer properly. Better battery backups also provide line conditioning to correct line sags as well as reduce an over voltage on the line.

Ideally, using a good UPS with line conditioning abilities is the way to go. Use it when you need maximum reliability and up time for any computer, including servers, networking devices, and Internet modems and routers.

Choose a good UPS and protect the business's data and make sure that service to customers isn't interrupted. Brand names include MaxPower Corp., APC, Minuteman, Tripp Lite, Liebert, and Best Power.

The right UPS will take the panic out of a power interruption.

Are you selling nationally or locally? Are you sure? (Part 2)

2008-08-11T16:02:00.002-04:00

Forecasts say that online sales will grow in 2008, even in the current economy. Are you going to get your share? Eliminating as much cart abandonment as possible will definitely help. As you plan for the season, your shipping system can give you the information you need to make your final price right for your customers. Make them click "Buy" instead of "Bye".

For the same order, do you charge different amounts for shipping depending on the package destination? That makes your price different according to where your customer lives. If you visit you local Sears store, they don’t ask for your ZIP code before you get the price. Yes, that's a little different situation, but no one likes to know they are paying more than someone else for the same item. That's a key factor that creates abandoned shopping carts.

It's clear that flat rate shipping, strategically mixed with "free" shipping offers, combats this problem. It has been found by a number of experts and Internet entrepreneurs that it is very important to display shipping charges before checking out to avoid shopping cart abandonment. Now, how to do this?

Of course, free shipping is very easy to calculate. Figuring out the right amount for flat-rate shipping is easy but takes a little more effort. The easiest way is to use your actual carrier rates in your shipping system, then use historical reporting directly from the shipping system. As an example, the CPS shipping software can use actual carrier rates, including contract specific rates that reflect the fuel surcharge. CPS provides a report (Click here to see a sample CPS Flat Rate Shipping Charge Report…) showing average shipping cost per package and average shipping cost per pound. These costs are also then split into next day, 2 day, 3 day, ground and international services. With just a few mouse clicks you can keep tabs on your shipping costs for any period of time by carrier and service to accurately manage your flat rate shipping offer.

Of course you can get these same numbers from the carrier bills, but its so much easier if you can just "Click" and see them. The example above is for CPS, but look for similar reporting in your shipping system. Monitor your costs at least monthly and make adjustments for changes in average charges. When using flat rate charges you can offer free shipping for special times of the year like holidays when competing for consumer dollars.

When you look at customer satisfaction and shopping cart abandonment issues, one might conclude that free shipping is the only way to go. This may not be the best approach for a couple of reasons, especially for the bottom line. Using flat rate shipping charges for low volume orders, then using free shipping to increase the order amount are effective ways to increase sales, decrease shopping cart abandonment and increase your return customer rate. When done properly, this leads to increased profits. In addition, if you offer only free shipping you have to build the shipping cost into the item cost. This means you have to change item costs on a regular basis to offset the shipping price increases brought about by fuel surcharges - inconvenient for you and confusing for your customers.

Use your shipping history reporting tool to monitor your average shipping costs and you can successfully use flat-rate or flat-rate and free shipping. Quick, easily available reporting from your shipping system lets you make sure you are making enough to break even for total shipping charges either way.