Last Monday, Dec. 5, the US Postal Service filed its proposals with US regulators seeking to adjust key service standards as it cuts the size of its mail processing network by more than a half. The change will affect First Class Mail, as the service will now change from a one-to-three-day service to a two-to-three-day service for the continental United States. The change in USPS First Class mail time will have far-reaching implications for businesses in every sector.

According the PostandParcel.info, “USPS executives told the press today that slowing down [USPS] First Class Mail [time] would allow the Postal Service to consolidate its operations from the current 461 processing plants across America into 200 or less, to respond to the loss of 30% of First Class Mail in the last decade, and the expectation of a further 47% decline in volume by 2020.” This improvement in efficiency is expected to save the agency $2.1bn in operating costs annually.

Post & Parcel estimates that about 28,000 jobs will be lost as a result of the changes to the USPS First Class mail time, along with other concerns and implications. Less service means longer delivery times, and without second-day First Class mail deliveries, there will be fewer days of delivery in general. This will lead to less competition for large private sector carriers like UPS and FedEx, which will mean higher shipping prices across the board.

While there isn’t much you can do about the changes, all hope isn’t lost. Be aware of the impact this most recent news will have on current and future practices, and look to your fulfillment center for advice.

“The proposed changes by the USPS will impact many aspects of fulfillment,” said Ayal Latz, president of a2b Fulfillment. “How the changes affect you will depend on your specific business characteristics.  For example, if you are shipping via First Class mail, the delivery times could be extended.  And that will depend on the zones you are shipping to. If you are shipping 10 lb. packages via ground, the changes will be less impactful.”

“Generally speaking, a cutback by the USPS will make that service less competitive with the private sector carriers like UPS and FedEx.  In turn, that will lead over time to price increases for shippers,” Ayal added.  “Your best defense against the service and pricing issues is to consult with you fulfillment company.  They should be tracking these developments, and can analyze the impact on your business.  At a2b Fulfillment, we take pride in providing our clients with the best shipping solutions for their particular needs”

USPS Cuts Back, Creates Longer First Class Mail Delivery Times is a post from: a2bFulfillment

Last month, Aaron Samuels, Executive Team Analyst for Bridget Solutions Inc., penned an article on the implications of dimensional factors on shipping costs – “While negotiating contracts with your carriers, it’s not enough to focus on just the price that you’re paying on a rate sheet,” said Samuels, “you also need to pay close attention to the dimensional factor that is being applied to your shipments.” The dimensional factor, or DIM, is a number your carrier uses to assess the effective weight of a shipment based on its density, and it can be adding more to your total cost than you may realize. Basically, the dimensional factor is the amount of space the package takes up per pound. If this weight is heavier than the actual weight of the package, your carrier will charge you according to the higher weight. To make this concept a little easier to grasp, we’ll pretend we’re shipping 10 pounds each of bricks and feathers. Ten pounds of bricks can easily fit into a 10x10x10 box, making the volume of that box 1,000 cubic inches. If you divide the cubic inches  bya the 2011 domestic dimensional factor of 166 – – your dimensional weight is about 6 pounds. Because this is lower than the actual weight of the package, your charge would be rounded up to the 10-pound rate.

Now, consider you’re shipping 10 pounds of feathers. This would require a much larger box, say, 15x15x15 inches. If the dimensional factor remains the same, and your volume is 3,375 cubic inches, the dimensional weight would then be 21 pounds. Although you’re shipping the same actual weight in feathers as you are bricks, you would  be charged at the higher 20-pound rate due to the dimensions of the package.

The reason carriers use dimensional factors is obvious. Each truck has a fixed amount of space, and therefore can only fit so many packages per run. In order to protect their profitability, carriers have to charge a higher price for a large box of feathers than a small box of bricks, regardless of the fact that their weight is the same. Although  the standard dimensional factors  are determined by the carriers each year, it is possible to negotiate a better rate. This is particularly true if your company ships a significant amount of packages that are frequently being assessed at a dimensional factor. While you can utilize packaging optimization to reduce dimensional factor-related costs, one of the best possible options you have is to hire a 3PL company to help you analyze your unique shipping characteristics and/or to consult you regarding contract negotiations.

Contact your fulfillment house today for expert advice on how to re-negotiate your annual contract with respect to dimensional factors. A2B Fulfillment offers order fulfillment services, direct response fulfillment, warehousing, value added services and shipping solutions in Canada and the US. For more information, call 866.843.3827 today.

Circumventing Dimensional Factors to Reduce Shipping Costs is a post from: a2bFulfillment

Yearly shipping cost increases are inevitable, but smart marketers know how to protect themselves and manage costs. January 2012 is just around the corner, so taking the initiative to renegotiate your shipping strategy with your fulfillment company will save you a lot of time, effort and money. Understanding the market, knowing what programs are available to you and being willing to act are your tools to deal with annual rate increases. Your fulfillment partner is well versed in the industry, studying carrier rates and programs. Don’t be afraid to take advantage of this valuable resource, as fulfillment experts can make recommendations tailored to your unique needs and requirements. Your 3PL can “Leverage their volume for discounted rates and programs not readily available to lower volume shippers,” Ayal explains, “Together you can understand the advantages and disadvantages with trade-offs between costs, speed of delivery, traceability and image/customer perception.” Here are a few other tips:

Geo-target: If a large portion of orders are being shipped to a certain geographic location, ship from there. Let your fulfillment partner analyze your national mix to provide optimum solutions.

Lighten up! Marketers know that weight is a key determinant in shipping costs. “Ongoing innovations in materials lead to lighter and stronger packaging options,” says Ayal. Shave off a few ounces and put your shipping unit into a lower price bucket.

Size matters: Carriers can and will price packages by either weight or size – whichever benefits them most, meaning, whatever costs you more. Reduce both product and package size when possible.

Discriminate: Consider using separate packages for consumer-direct and retail.  “With consumer direct, it is critical to get your package weight and size correct,” Ayal says, “For retail, packaging has an additional objective.”

Packaging optimization is a critical practice for those who wish to cut costs across the board. You may slack on contacting your tax man each April, but it’s vital to contact your fulfillment house as soon as possible to negotiate a strategy for 2012. A2B Fulfillment offers order fulfillment services, direct response fulfillment, warehousing, value added services and shipping solutions in Canada and the US. Call 866.843.3827 today for more information.

Strategies for Adapting to Annual Shipping Cost Increases is a post from: a2bFulfillment

In Direct Response, marketers prefer to drop-ship quickly to individual households, and don’t have the luxury of true consolidation.  But consolidation science has developed tools to make their process more efficient.  This can be applied to upselling in Direct Response while structuring the offers to take advantage of weight and dimensional limits.

“Small package carriers charge customers a per-package rate based on the carton weight and the distance between origin and destination,” explains Tim Zinner of Parcel Industry.com. This means that the cost of per-pound shipping is more expensive for lower-weight packages.  In other words, smaller, lighter packages, which have to bear the burden of a proportionately high shipping cost, have intrinsically lowered the value of the offer to the consumer.

“Savvy shippers have taken advantage of these lower rates and have started packing larger quantities   into cartons,” says Zinner, “In addition to reducing shipping costs, parcel consolidation also helps to reduce the number of charge-backs.” This shipping process is more efficient, as it takes advantage of packaging optimization.   Marketers can do the same thing by creating offers that include assortments that push the limits of the size and weight parameters.   For example, a marketer offers a product at $40 with $8 shipping and handling.  An alternative is two products at $60 with the same $8 shipping and handling.

In his article, Zinner outlines a strategy for achieving the lowest possible shipping cost using drop-shipping:

-Consolidated cartons must stay within dimensional weight range determined by small package carrier.

-Contents should be effectively arranged within the parcel to fit into smallest size carton.

-Utilize Zinner’s software algorithm that determines the most efficient way to load a package – “simply tell the program what products should be shipped and the software generates a guide explaining where the ‘pieces’ should go.”

Using Zinner’s algorithm, shippers can increase productivity and efficiency through packaging optimization. If your company is considering enlisting fulfillment services, contact a2b Fulfillment today. A2b, a 3PL company, offers a complete range of fulfillment services, including warehousing in Atlanta and Toronto, e-commerce fulfillment, as well as shipping services like LTL, FTL, Rail and overall supply chain management. For more information, call 866.843.3827.

Packaging Optimization: How to Save Money with Drop Shipping is a post from: a2bFulfillment

With a population of over 33 million, the Canadian market  can be a source of  significant volume for US marketers. However, there are several hurdles or dis-incentives for Canadian consumers including: prices for U.S. products, the hassle of paying  applicable duties at time of delivery, longer delivery times and poor or even non-existent tracking methods. Now, merchants have become more proactive about their Canadian customers by opening fulfillment centers within the country to reduce charges and shipping times, improving overall customer service to the country.

Although some online retailers are opening fulfillment centers in Canada , it is not essential for  an e-retailer  to have to open their own distribution facilities.     Another solution is to outsource fulfillment through a third-party vendor. A2b fulfillment has recently expanded its services to Canada and now is  helping merchants reach Canadian consumers with the same efficiency for which they are famous in the United States. By staging a portion of your inventory in  a2b’s Toronto-area facility, Canadian consumers receive your product faster, more economically and with duties prepaid. This streamlined methodology increases consumer satisfaction, which translates into decreased cancellations and customer service costs.

A2b’s Canadian Solution provides a single partner for both U.S. and Canadian orders (one file, one point-of-contact, one system), faster delivery (as quick as next-day), excellent tracking and duty-free delivery. For more information, call a2b today at 1.866.843.3827.

Major E-Retailers Opening Fulfillment Centers in Canada is a post from: a2bFulfillment

The ERA D2C Convention is a must-attend event for all companies within the industry, and this year, a2b  made a big splash. Having been in the direct-to-consumer industry for 6 years, owner Ayal Latz was delighted to receive record foot traffic at this year’s event. Excited customers lined up to learn more about a2b’s exciting new products, unveiled live for the first time.

the convention served as the perfect forum in which to  introduce personally the latest additions to industry peers and consumers alike. Customer service has been greatly enhanced via a new call center that utilizes cloud technology to route inbound calls to the best available agent. Calls may also be routed to a2b’s select, integrated contact center partners, providing scalability when needed.

Fulfillment in Canada, one of a2b’s most recent endeavors, was also introduced and explained to the crowd of excited potential clients, highlighting the many surprising benefits of the new program. A2b’s Canadian Solution provides a single partner for both U.S. and Canadian orders, fast delivery, excellent tracking and duty-free delivery.

The final introduction was a2b’s innovative Returns to Profit program, a Reverse Logistics initiative that achieves multiple goals, including: improving customer satisfaction and brand loyalty by providing a customer-friendly return process; reducing customer service costs related to the RMA/Return process; reducing return postage/freight costs; gaining incremental revenue from Customer-Paid Returns; and reusing and renewing returned product.

Ayal is ecstatic about the reception they received at the 2011 D2C Convention. Droves of attendees flocked to the a2b Fulfillment booth to learn about the latest offerings – “This is the best show we’ve ever had,” Ayal exclaimed, “people were lining up to talk to us and were genuinely intrigued with our new services, it was exciting.” For more information on a2b’s services and how your business can save time and money with a third-party logistics company, call 866.843.3827 today.

Watch an interview with a2b President Ayal Latz:

a2b Fulfillment Draws Record Crowds at 2011 D2C Convention is a post from: a2bFulfillment

We’ll try to explain reverse logistics in the most universally relatable way possible. The ultimate goal of reverse logistics is to capture value by making the flow and storage of goods from their point of consumption to their point of origin more efficient and cost-effective. This can mean reusing containers, recycling packaging materials and even redesigning packaging to use less material. Considering that we’re discussing reverse logistics, only those activities that involve sending goods or materials “backward” apply. This can include restocking, seasonal inventory, recalls, processing returned, damaged merchandise, excess inventory and more. It can also include recycling programs, asset recovery, obsolete equipment disposition and hazardous material programs.

As you have likely inferred, reverse logistics helps to lessen the impact that the flow and storage of goods has on the environment. While traditional logistics is focused primarily on making these processes more efficient from start to finish, reverse logistics inherently emphasizes a focus on sustainability. We will discuss this aspect of reverse logistics in the coming weeks.

A2b Fulfillment is a progressive third party logistics provider that  has learned how to help companies deal with reverse logistics in a profitable manner.  A2b has developed a unique returns and refurbishment program, Returns to Profit, which can solve your logistics issues and lower your costs.  A2b also provides direct response fulfillment, order fulfillment services, warehousing and distribution services and more. Contact us today to learn more about how our Returns to Profit program can help you build a stronger brand, lower cost of goods and generate profit from returns.

Reverse Logistics 101: Translating Complex to Comprehensible is a post from: a2bFulfillment

Technology investment:  A shipping company requires costly and sophisticated technology. Logistics companies have already made the investment in this technology, as well as other necessary resources like internal IT. “3PLs have turnkey solutions at their disposal to support complex supply-chain challenges,” said Dennis Maltby, Executive Vice President of Unyson Logistics.

Focus on generating revenue: Since 3PLs already employ trained and qualified resources in the logistics industry, shipping company managers and employees can focus more on  revenue generating  Tasks.  “Having a “do it yourself” philosophy is important for those who have limited budgets.  However, spending all of your time “operating” your business leaves less time for the tasks that produce revenue,” said Ayal Latz, President and Founder of a2b Fulfillment.

Industry experience: 3PLs chief focus and expertise is on supply chain management.  Through working with a 3PL your company will benefit from their industry knowledge and insight. 3PLs utilize on the latest industry information and trends, providing a unique competitive advantage for companies and their customers.

Visibility: 3PLs can reduce overall costs while delivering visibility into all modes of transportation. “This will reduce overall supply-chain cycle times and allow for superior customer service,” says Maltby.

Continuous improvement: A 3PL does far more than ship your packages.  At a2b Fulfillment, the order management system seamlessly manages  a client’s  campaign while providing a real-time, 360-degree view of it all.  A2b also works with the client’s shipping company to continually improve the process.

Value, Savings & Reporting: 3PLs are  always  focused on delivering value that will result in savings for the customer. a2b provides Multi-Channel Retail marketers access to a plethora of data and analytics that help uncover opportunities, increase performance and develop deeper insight into the campaign.

Leverage: “3PLs leverage the collective spending of their clients, increasing the buying power of an individual shipper.” A2b can save you time and money by leveraging our carrier relationships to handle your shipments.

The benefits of partnering with a 3PL for shipping companies are endless. If you’re considering partnering with 3PL to manage your order fulfillment and/or shipping solutions, contact a2b Fulfillment today at 1-866-843-3827.

How to Save Time & Money with Your 3PL is a post from: a2bFulfillment

With all of these barriers and delays, Canadian consumers are discouraged from ordering from US merchants.  Also, as the time between ordering and delivery grows, the campaign experiences higher customer service costs and cancellations.  Continuity programs are hit especially hard as the cycle is extended.

a2b Fulfillment’s Canadian program solves these problems.   By positioning product in our Toronto-area warehouse, packages ship same-day and deliver as quickly as the following day.  Tracking is strong and accountable.  Best of all, delivery is duty free as they are collected in advance at the time of sale (just like state sales tax).

By working with a2b, marketers receive the same efficiency in Canada as a2b is famous for in the US.  All activity on both sides of the border is managed in the same system and through one point-of-contact.  Send us one order file and we will do all the work.  Easy.

Contact a2b Fulfillment today to learn more about how we can help you expand your market into Canada with little effort. We aim to be a top third-party logistics provider for fulfillment in Canada.

Call us Toll Free 866-843-3827 for further information and a customer service representative will be happy to assist you.

Fulfillment in Canada – a2b’s Newest Endeavor is a post from: a2bFulfillment

However, if you’re using the United States Postal Service, you’re not only getting the package back but a hefty bill to go with it.

Effective June 24, 2011 the USPS significantly raised their rates on undeliverable or return to sender postage.   The new rates are being categorized at non-sorted pricing plus an additional $3.00 fee.  The effect of these measures not only adds a dent in profit margin but can be quite frustrating as well.

For example, based on the previous returns rate, the average two pound USPS package returned to sender for insufficient address or refusal would come back at a rate of $4.90.  With the new price increase, that same two pound package is now returned to sender at a rate between $8.17 and $12.32.

At a2b Fulfillment, we qualify for special programs with major freight carriers that offer deep discounts on packages that ship to residences.  Best of all, 75-80% of these packages are not shipped through the USPS system, meaning that the majority of undeliverable packages are returned at the same economical outbound rate.

Don’t let a data entry error send your package right back to you with a hefty fee!  Take advantage of our discounted shipping and save equally on the outbound and on inbound Return to Sender packages.

At a2b, we have all of the components in place for a successful outsourced solution, including modern warehousing and storage facilities, advanced technology, skilled labor, strategic location and discounted shipping.   Contact a2b Fulfillment today to see how we can help you and your business by calling 1.866.843.3827 to learn more.

USPS Adds Hefty Returns Pricing is a post from: a2bFulfillment