Carriers getting ‘creative’ with pricing says report
The report from Reveel looks into growing complexity in the US parcel market.
REVEEL DIRECTOR of optimisation and analytics Jack McCrum, says: “Carriers are getting very creative with pricing; we’ve observed them leaning into definitional changes and incremental rate and fee increases without warning, applied at various times across the calendar year. It’s clear shippers are frustrated, and are hoping to address these issues by expanding their carrier networks.”
Findings from Reveel’s report include that 91% of respondents expect to expand their carrier networks to help reduce parcel shipping costs; and 48% believed embracing automation was the strongest path to reducing expenses.
According to the report, logistics expenses average 22% of organisations’ overall operating expenses. Within their overall logistics budgets, respondents also reported that the amount spent on parcel shipping breaks down as follows:
- 37% allocate between $2 million and $10 million;
- 42% allocate between $10 million and $50 million; and
- 21% allocate more than $50 million
Parcel spend can consume a considerable amount of an organisation’s budget – and because carriers now make incremental increases to rates and fees all year long – costs can quietly creep up.
The study was developed by Reveel in collaboration with an independent, third-party research organisation, and spoke to over 150 supply chain and logistics leaders across North America who participated in a double blind survey.
Reveel offers the Shipping Intelligence Platform with Parcel Spend Management 2.0 included.
