When it comes to parcel delivery, FedEx and UPS are clearly the dominant players. But you can use regional carriers to supplement the service of the Big Two. In fact, if you haven’t evaluated regionals, you might be leaving money and value on the table.
Like the name implies, regional carriers serve a specific region within the U.S. These service providers are ideal for shippers with multiple distribution centers, especially if the DCs are aligned to the regionals’ delivery footprint. For one thing, thanks to their continued reliance on ground versus air transport, lower operating costs and fewer accessorial charges, recent reports show that regional services can save shippers up to 40% for express deliveries.
How have the regional carriers been able to successfully compete against formidable and deep-pocketed competitors in UPS and FedEx?
Many shippers will cite overall value proposition, including cost savings, consistent service performance and innovations that make it easier to ship with regionals. What’s more, regional carriers offer multiple delivery options that offer many benefits — including lower cost, flexibility and, in many cases, better service.
Most regional carriers transport packages via truck hubs instead of airlines. Trucking can be as little as 10% of air costs. Shippers that have a high concentration of customers in a particular market should consider regional carriers in conjunction with less-than-truckload services.
Finally, many shippers leverage regional carriers to lower pricing with the national carriers. Competition enhances leverage, which is essential in any negotiation. Shippers may also feel more comfortable not putting all their eggs in one basket. In short, the parcel industry has experienced quite a transformation over the years, and the landscape continues to change. It started with a pony. It continues today with the information cyber superhighway. And the future will present even more options for shippers. Stay tuned and enjoy the ride
Our services at United Delivery Service have been designed to offer flexibility as well. A single service may not suit the needs of every customer. Our Same Day, Next Day and Customized Routed services offer flexible options. Our services may be customized or combined to offer a complete shipping solution for your company. Contact us today and we will find the solution that best suits the needs of your company. Call us today to learn more about what we can do for your business.