In the world of small parcel shipping there are largely only two service providers in the United States, UPS and FedEx. Many businesses feel strongly (often based on a prior negative experience) that the service of one carrier is far superior to the other. On the other hand, there do remain some businesses that are relatively neutral in the consideration of a UPS and FedEx service comparison. These are businesses that can approach a carrier rate negotiation largely based upon price, which the carriers hate, and in turn can give the shipper a significant upper hand.
It is important to note, when comparing UPS and FedEx rates it is NOT accurate to simply evaluate each carrier’s proposed incentives and discounts side-by-side. Bear in mind that a 50% discount from one carrier may result in a different net charge than a 50% discount from the other since the carrier’s base tariff and fee schedules can vary from one another. To accurately determine the difference between UPS and FedEx rates it is essential to compare actual net costs after applicable discounts, incentives, and/or rebates.
Source Consulting offers a free online FedEx & UPS Rate Comparison Tool, which provides businesses a useful resource for evaluating the potential differences in the carrier’s transportation (gross and net) rates. The team of experts at Source can also help conduct a more comprehensive rate comparison that takes into account surcharges and accessorial fees. Our team thoroughly understands today’s complex carrier pricing environment and has help hundreds of companies implement solutions to reduce shipping costs. Contact us today to review the solutions we can provide for you.
BEST PRACTICE SUGGESTIONS:
• When conducting a UPS vs. FedEx rate comparison it is important to evaluate net costs NOT discount percentages.
• When negotiating with FedEx and UPS do not rely solely upon their own summary assessment of their pricing proposal. Use your own analytic tools or bring in a third party to help.
• For general transportation rate comparisons there are free online tools like the FedEx & UPS Rate Comparison Tool.
• Companies like Source Consulting can help provide meticulous in depth analysis of UPS vs. FedEx rates, fees, discounts and incentives specific to your business.