Businesses that rely on UPS and/or FedEx have ridden a roller coaster of change over the past 18+ months. In that time, both carriers waived their service guarantees, implemented a number of new surcharges and fees, and raised their rates.
By now, shippers know that using UPS and Fedex services will continue to get more expensive. That’s expected. What’s unexpected is when and how new policies implemented by the carriers will affect their customers (you!).
If your business uses UPS’s Next Day Air service, here’s an important update to be aware of:
*Effective October 18, 2021 and until further notice, UPS is making the following operational adjustments: Delivery commitment times for UPS Next Day Air® destined to residential locations with a typical delivery time of 10:30 AM will be extended to 12:00 PM. Any applicable Service Guarantee with respect to these packages will be based on these revised delivery commitment times.
The change to Next Day Air residential deliveries comes just weeks after implementing peak holiday season surcharges, fees and restrictions. You can read about all the details for the 2021 Peak Season here.
How Can You Avoid Paying For Costly Service (When You Don’t Need To)?
Don’t overpay for a service you may not actually need, especially when recent changes decrease its value.
When you create a free Lojistic account you’ll be able to see all of the shipments you paid extra for Air service when they could have gone Ground with the same (or quicker) time-in-transit. Our Air vs Ground dashboard helps shippers optimize their service level usage because Air services aren’t always faster than Ground. In fact, sometimes Ground delivery commitments are faster than next day Air - and Ground is always more cost effective.
With UPS changing its guaranteed delivery times for Next Day Air, all businesses using the service should assess its value. Does your package really need to arrive at or before noon? Would a few hours in delivery time make or break your customers’ expectations and experience?
If the answer to either of those questions is “NO” you could be saving a bunch of money by moving some of your package volume to Ground service. Use the Air vs Ground dashboard to quantify your savings and see which packages could be shipped using Ground instead of Air.
When UPS makes policy changes, it can be difficult to fully understand how it’ll impact your business.But with Lojistic, you can determine exactly how carrier changes affect your shipping expenses. The cost savings analytics allow you to make the best decisions for your business and for your customers.
Can Regional Carriers Reduce My Shipping Costs?
Possibly! Using regional carriers can be an effective strategy to offset your reliance on UPS, FedEx or DHL. But, there are many variables to consider in determining whether or not a regional carrier is right for your business. Learn more about regional carriers here.
If you’re interested in learning more about Lojistic or how we can help you reduce shipping costs, we’re here for you!
You can start by connecting to our free platform here. Or, if you prefer to chat, use our chat feature in the bottom right corner of the page (if you’re on desktop), fill out a contact us form here, shoot us an email at email@example.com or give us a call at (800) 783-5753.
Despite UPS’s recent announcement, you can send costs packing with Lojistic.