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Multi-carrier strategy: the pros outweigh the cons

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Implementing a multi-carrier strategy is key to providing a consistent and reliable delivery experience. But making a change to your operations can be daunting.

We recently surveyed Australian retailers to ask what their biggest challenges are that are preventing them from transitioning to a multi-carrier strategy. The main reasons?

1. Losing volume discounts

2.Technical integration complexity

3. Managing multiple carrier relationships

4. Additional sortation requirements

These concerns are easier to address than you’d think. 

Losing volume discounts

With Shippit, you can either benefit from on-platform rates where we have done the negotiation for you, or you can bring your own carriers. Or, you can do both. 

Either way, you’ll have the ability to select the best rates.

Technical integration complexity

It takes around 15 days on average from sign up to first shipment on the Shippit platform. Once you’re set up, you’ll have immediate access to all features and functionalities that come with your selected subscription, including all carriers and delivery options. 

One integration and you’re all set. 

Managing multiple carrier relationships

Don’t want to manage multiple carrier relationships? Let us do it for you. 

Additional sortation requirement 

Whilst an additional sort can be daunting, this is a well trodden path. Shippit’s carrier operations team are there to support our customers and guide on the best path to introducing an additional carrier into the warehouse, and how to reduce complexity.

Your Shippit Customer Support Manager will be your single point of contact, and they’ll manage all on-platform carrier enquiries on your behalf. 

While implementing a multi-carrier strategy can take a bit of consideration, the benefits far outweigh any perceived challenges.

1. Flexibility and Choice: Multi-carrier shipping offers the flexibility to tailor shipping options to meet customer demands effectively, including to unlock additional options like on-demand delivery.


2. Enhanced Service Levels: Leveraging multiple carriers can help ensure retailers can consistently meet their delivery promises. Multiple carriers can also be used across each leg of the delivery via the Smart Routing solution, allowing for delivery route optimisation.

3. Risk Diversification: Diversifying carrier relationships helps mitigate the risk of service disruptions and delays. If one carrier experiences an issue, businesses can quickly switch to an alternative carrier to ensure seamless delivery and maintain customer satisfaction.

4. Cost Optimisation: Multi-carrier shipping enables retailers to optimise shipping costs by leveraging competitive rates and negotiating volume discounts. This allows Businesses to reduce shipping expenses and improve profitability without compromising on service quality.

5. Global Reach: Multi-carrier solutions provide access to a network of carriers with global reach. This allows Businesses to expand their market presence and reach customers worldwide with ease.

The benefits a multi-carrier strategy offers in terms of flexibility, enhanced service levels, risk diversification, cost optimisation and global reach, make it a valuable strategy for retailers who want to provide a consistent and reliable delivery experience to their customers. Plus, with Shippit on hand as a single point of contact, who will support the technical integration and negotiate volume discounts with carriers, it’s a no brainer. 

Reach out here if you’re interested to learn more.

LAST UPDATED
May 7, 2024
CATEGORY
Shipping

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