Multicarrier shipping has become a cornerstone strategy for businesses looking to optimize their shipping operations. This approach can lead to significant cost savings, improved delivery times, and enhanced customer satisfaction.
What is Multicarrier Shipping?
Multicarrier shipping is the practice of using multiple shipping carriers instead of relying on a single provider. This strategic approach allows businesses to:
- Select the most cost-effective option for each shipment
- Improve delivery speed and reliability
- Reduce dependence on a single carrier
- Adapt to changing market conditions
The Business Case for Multiple Carriers
The financial and operational benefits of a multicarrier approach are compelling:
Cost Optimization
Different carriers excel in different aspects of shipping. By leveraging each carrier's strengths, businesses can:
- Reduce overall shipping costs by 8-15% on average
- Minimize dimensional weight charges through carrier-specific packaging strategies
- Take advantage of competitive pricing during contract negotiations
Risk Mitigation
Relying on a single carrier creates vulnerability:
- Carrier-specific delays or service interruptions can completely halt shipping operations
- Annual rate increases affect your entire shipping volume
- Capacity constraints during peak seasons can leave you without options
Service Area Optimization
Different carriers have different strengths in various geographic regions:
- Regional carriers often provide better service and rates in their core areas
- Some carriers excel at rural deliveries while others are optimized for urban areas
- International shipping capabilities vary significantly between carriers
Our data shows that businesses implementing a well-managed multicarrier strategy can achieve 99.1% on-time delivery rates compared to the industry average of 96.7%.
Implementing a Multicarrier Strategy
Moving to a multicarrier approach requires careful planning:
Technology Requirements
Efficient multicarrier shipping requires specialized software that can:
- Compare real-time rates across carriers
- Apply business rules for carrier selection
- Generate carrier-compliant labels and documentation
- Provide unified tracking information
Carrier Selection Criteria
When building your carrier portfolio, consider:
- Service level options and guaranteed delivery times
- Geographic coverage strengths and limitations
- Specialized service offerings (weekend delivery, white glove, etc.)
- Technical integration capabilities
- Financial stability and reliability
Business Rules Development
Effective multicarrier management requires clear rules for when to use each carrier:
- Package characteristics (weight, dimensions, value)
- Delivery timeframe requirements
- Destination location type (residential vs. commercial)
- Customer segment or order value
Conclusion
Multicarrier shipping is no longer just an option for cutting-edge logistics operations—it's becoming a necessity for businesses of all sizes. By diversifying your carrier portfolio, implementing the right technology, and developing smart business rules, you can achieve significant cost savings while providing superior delivery experiences for your customers.