New Year, New Parcel Shipping Approach? It’s Time for a Checkup

From “dry January” to skyrocketing gym memberships, a lot of people are kicking off 2024 by improving their health and wellness practices. 

Why not apply that same principle to your business practices? The start of a new year marks the perfect opportunity to make changes that improve your customer service results, while simultaneously driving costs out of your operations.    

Parcel shipping represents a huge cost center for most companies — and it’s also fundamental to fulfilling your all-important customer promises. With so much at stake, we believe the new year is the perfect time for a parcel shipping health checkup.  

It's 2024 — But Shippers Are Feeling the Effects of 2023

After another year that brought general rate increases and hidden surcharges from major parcel carriers, many logistics teams are entering the new year with limited knowledge. They’re asking questions like: 

• How will the rate increases and new surcharges affect our daily shipping costs?  
• Do we have the right plan in place to balance low costs with high service? 
• Is there an opportunity to negotiate better rates with major carriers, based on our shipping volumes? 
• Can we afford to bypass the major carriers? What are the alternatives? 

Having the right answers to these questions — and kicking off the new year with a smart, informed approach to parcel shipping — is critical to your success in 2024.  

While it’s only January, companies can’t afford to make costly mistakes that drive customers away for the rest of the year. For example, it’s risky to “test the waters” by simply passing new surcharges on to customers in the form of higher delivery fees. It’s equally risky to turn your parcel shipping over to a new, unproven carrier who might compromise your longstanding customer relationships by delivering late. 

What are shippers supposed to do as they begin the new year in a parcel shipping landscape that’s continually changing? How can they make financially healthy choices over the next 12 months, in terms of both profitability and revenue growth?  

Let Redwood Improve Your Parcel Shipping Health…

The good news is that the doctor is in. Redwood’s Parcel Advisory and Mediation services are aimed at assessing your current shipping practices, analyzing the impact of recent industry changes, and creating a proactive plan to meet your shipping fitness goals for 2024. 

How does it work? Redwood follows a step-by-step process that begins with a custom analysis of your company’s parcel shipping activity. A comprehensive review identifies your primary cost drivers, as well as savings opportunities such as modified contract terms, a new carrier mix, new packaging strategies or a new network model. (As a bonus, our proprietary auditing software often identifies variations between your current contract terms and your carrier invoices, leading to reimbursements.) 

Based on this analysis, Redwood’s expert parcel team — which includes former professionals at UPS, FedEx and other carriers — makes concrete recommendations for improvement. They understand the impact of rate increases, surcharges and other complexities on your specific shipping needs. Based on that knowledge, they help you navigate this confusing landscape and achieve top-tier pricing agreements that represent an optimal balance between cost and service.

The Redwood Parcel Advisory and Mediation team also includes contract management experts. After you’ve identified your ideal carrier mix — which may include smaller regional carriers, in addition to UPS and FedEx — these experts coach you through the proposal and negotiation process. Redwood advisors have “been there, done that” with hundreds of customers. They know exactly how to analyze carrier proposals, determine savings opportunities and help you nail down the most competitive pricing.

To ensure your longer-term health, the Redwood Parcel Advisory and Mediation team can continue to check up on your cost and service results, helping you achieve incremental improvements as conditions change. Redwood also offers full-service Parcel Execution for companies looking to outsource their physical shipping activities. 

…Freeing You to Focus on Your Overall Business Health

Faced with demand and supply volatility, supply chain disruptions, rising operating costs and growing customer expectations, companies have enough to worry about in 2024. Busy logistics teams shouldn’t have to invest time and personnel to understand and master the complexities of parcel shipping at scale. 

The value proposition behind Redwood Parcel Advisory and Mediation is simple: Let us help you, based on our specialized expertise and decades of experience. We can step in, diagnose your parcel shipping issues, and improve your fitness in terms of both cost and service. That frees your internal resources to focus on your core supply chain capabilities — and your overall business health. 

Ready to schedule your 2024 parcel shipping checkup? Reach out to Redwood and get on the path to healthier results today. 

Want a sneak peek into Redwood’s Parcel Portal? Check out our exclusive demo!