Reducing Shipping Costs Through Optimizing Carrier Services | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) Reducing Shipping Costs Through Optimizing Carrier Services =========================================================== ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)January 13, 2012 There are many ways to reduce shipping costs. One efficient way of accomplishing this task is by improving one’s organization policies related to carrier service level selection for shipments. Why? Because nearly all UPS and FedEx service levels have in-transit delivery guarantees, in which packages will definitely be delivered in a certain time frame. Thus, shippers should look to maximize a short zone distribution model in order to reduce overall shipping costs. This optimization will require companies to look at their shipping methods and choose deferred services (ground, three-days) rather than express services (overnight, two-days) since the same time-in-transit guarantee is present in all regions of the United States . For instance, when shipping out of California to Nevada, there is a guarantee of a two day transit delivery time, making it more costly to ship using the two-day express service than the much cheaper ground deferred service. Here are some suggested ways to implement this strategy: **BEST PRACTICE SUGGESTIONS** -Study your company’s shipments to see which packages can benefit from this optimization strategy. For instance, figure out which packages that are using express services can be shipped via a ground service that would still arrive in the same amount of time due to the guarantee. -When you offer shipping options to your customers, do not offer the deferred or express services choices. Instead, implement a system in which the customer inputs the date they would like to get the package by. With appropriate optimization studies on your shipping and a small amount of IT programming, you can reduce your company’s shipping costs and pull in profit. -[Source Consulting](https://www.lojistic.com/rate-optimization-rfps) is a trusted and experienced company that can help you better understand and implement these optimization strategies along with other ways to reduce your company’s shipping costs! Contact us for a free quote and discussion about how we can help. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) 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. 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