UPS and FedEx announced their January 2012 general price increases (GPI). Why is this important? For any company that ships parcels, the GPI will affect your overall shipping costs! As the 2011 GPI showed, there can be substantial impacts on shipping costs resulting from changes to accessorial charges and dimensional weight formulas. The 2012 increases are only announced as averages and can vary greatly from one shipper to the next. Here are a few ways to prepare:
BEST PRACTICES SUGGESTION:
-Before the 2012 UPS and FedEx rates go into effect, all shippers should analyze the cost impact of their respective carrier’s GPI by looking at their historical and anticipated shipping levels and characteristics. If there is an opportunity for you to improve your discounts and rates, you should look into negotiating with your carrier before the rate increase occurs.
-Implementing these plans can require a lot of your time. Using a third party, like Source Consulting, can help you accomplish these best practices and more. Source is made up of former UPS and FedEx employees that are equipped to help you understand the complex carrier contracts. The company is currently offering a free 2012 UPS and FedEx rate analysis specific to your business. Contact us for more information.
Author
Rich Harkey
Rich Harkey
Senior Strategy Manager
Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry.
As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts.
Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results.