UPS Profit Triples – 4th Qtr. Of 2009

I don’t know how you felt but when UPS released their earnings yesterday I was shocked.  I literally had to take a Xanax to calm my nerves. Every one of my customers believes it is getting the best deal but guess what? None of them really know for sure! Read on.

How Was Your Profit?

During Q4, 2009 UPS stated how important the across the board 4.9% increase that went into effect on January 2, 2010 was to its company’s profitability. Your rates went up, some as high as 8%. How was your profit? Well my friends if you are not angry about this, then I can’t help.  Why not just offer to pay them 20% more?  But, if you want to fight back, here are five simple steps that will lower your transportation costs…immediately:

Benchmark:  Check with a professional to be absolutely certain the assurances you receive from your carrier rep. are accurate and you in fact have the lowest rates available to you. 

Compare Shipping Rates: When carriers compete, you win.  In real estate valuation is often measured by location, location, location!  I say, compare, compare, compare!  What Brown, Purple, Black and Blue can do for you is based on your ability to negotiate.  You have options! Get an expert if you need help.

Carrier Routes: Make sure every package you send uses the least costly service provided by your preferred carrier.

Hygiene: (Yeah shipping hygiene!): Make sure every carton is addressed perfectly and is placed in the smallest possible carton with the least amount of packing material. BTW, there are foolproof ways to check all your addresses, zip codes and carrier zones.

Freight Bill Audits: Examine your invoice for post-shipment charges and question them when you find them.  Last October at the Parcel Show in Chicago over 50% of the attendees were desperate for ways to control these costs. Why? They needed absolute assurance that their customers were being charged back properly.  They still need it. There are lots of ways to help.

From the Transportation Spend Assassin, I hope this helps your company Ship Better and Save Money℠!

Jim LeRose

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