PARCEL July/August 2016

PARCEL

JULY-AUGUST 2016

www.PARCELindustry.com

OUR ANNUAL

HOT

COMPANIES ISSUE! FACING THE INTERNATIONAL E-COMMERCE CHALLENGE HEAD-ON P.52 KEEPING UP WITH THE ONLINE RETAIL WORLD TODAY P.54 UNPACKING THE GRI: WHAT YOU DON’T KNOW CAN HURT YOU P.56

PROFILES OF LEADING INDUSTRY SOLUTION PROVIDERS P.14

CONTENTS JULY-AUGUST 2016 | volume 23 | issue 4

Features

Departments 06 Editor’s Note

Overcoming International Obstacles

By Amanda Armendariz

07 Spend Perspectives

Cross-Border E-Commerce Solutions Grow

By John Haber

08 Operational Efficiencies If I Could Read Their Minds!

By Susan Rider

14 Our Annual HOT COMPANIES Section

A peek at some of the leading solution providers in the smallpackage logistics industry

09 Ship Right

Choose Your Carrier Wisely: Don’t Let New Fees Derail Your Shipping Operation

By Chris Giles

10 Supply Chain Success

Common Transportation Data Sources and Applications

By Jesse Gates

12 To Sum Up… 50 Inside Looking Out

A parcel pro’s view of the landscape.

By Brian H. Sternberg

52 Facing the International Challenge Head-On

Tips to overcoming the obstacles that are inherent in cross-border e-commerce trade.

58 PARCEL Counsel

A First Look at Consignee Chargebacks

By Brent Wm. Primus, JD

By Doug Caldwell

59 Wrap Up

The Perfect Delivery

By Michael J. Ryan

54 Competing in the Online Retail World Today

E-commerce has changed the retail landscape. Here’s how you can stay competitive.

By Trevor Outman 4

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56 Unpacking the GRI

Annual carrier rate increases — what they are and what parcel shippers can do about them.

By Andy Brueckner & Travis Rhoades

president chad griepentrog publisher ken waddell editor amanda armendariz [ amanda.c@rbpub.com ]

editorial director allison lloyd [ allison.l@rbpub.com ]

audience development manager rachel chapman [ rachel@rbpub.com ]

marketing cierra bauer creative director kelli cooke advertising ken waddell (o) 608.442.5064 (m) 608.235.2212 [ ken.w@rbpub.com ]

PARCEL PARCEL (ISSN 1081-4035) is published 6 times a year by RB Publishing Inc. All material in this magazine is copyrighted 2016 Š by RB Publishing Inc. All rights reserved. Nothing may be reproduced in whole or in part without written permission from the publisher. Any correspondence sent to PARCEL, RB Publishing Inc. or its staff becomes the property of RB Publishing, Inc. The articles in this magazine represent the views of the authors and not those of RB Publishing Inc. or PARCEL. RB Publishing Inc. and/or PARCEL expressly disclaim any liability for the products or services sold or otherwise endorsed by advertisers or authors included in this magazine.

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JULY-AUGUST 2016 | PARCELindustry.com

5

EDITOR’S NOTE

BY AMANDA ARMENDARIZ

Overcoming International Obstacles ou will notice that the topic of international trade is a hot one in this issue. This isn’t surprising, given the explosive growth of international e-commerce over the past decade or so. Even when I started as managing editor of this magazine (which, admittedly, is almost 11 years ago), international shipping was not nearly as pressing a topic for parcel professionals to consider. Oh, of course it happened; people have been purchasing products from other countries, in one way or another, for thousands of years (although let’s be honest, we are spoiled when you consider how quickly we get our items. Can you imagine having to wait two or three months for the trading expedition to return to deliver the spices and silk to your local merchant?) But in the past 10-15 years or so, with the wonders of the Internet, e-commerce is not just thriving, it’s booming. And people still expect their orders to arrive quickly, no matter from which country they originate. Add in the fact that consumers can now order online right from their smartphones, at any time, any place, and it’s safe to say that international trade is now at a level that was likely previously unanticipated by even the most seasoned parcel professional. Who could have predicted the vast number of packages that are now flying through the skies or filling up cargo space on ships every single day?

This boom is, of course, a good thing in many ways for merchants. More products to more people around the world means more money in the company’s pockets. But it also means that there are challenges that are inherent when shipping a product to another country, challenges that are not present when shipping domestically. Customs regulations and forms, duties and taxes, restricted items depending on the country… the list goes on. So while it’s crucial that most shippers enter the international arena in order to remain competitive, they must also take care to not simply rush into things, because filling out a form incorrectly or not paying the appropriate duties and taxes could mean a significant loss of profit once you pay the fines.

Are you signed up for our e-newsletter?

If not, what are you waiting for?

As of press time, these were some of our most popular articles from recent e-newsletters: • Shipping Options and Delivery Partners Essential to Winning the eCommerce Battle • A Day in the Life of a Parcel – Part One • Be on the Watch for Rising Warehousing Costs To get great articles like these emailed to you on a regular basis, go to PARCELindustry.com/enews.

Thursday’s Tip

Have you signed up for our Thursday’s Tip feature yet? If not, you’re missing out on some great information emailed to you every week! Don’t worry, we know you’re busy, so these tips are brief and easy to read — but yet much-needed information for any transportation professional! All you need to do is sign up for our e-newsletter!

We hope you find this issue illuminating. And if international shipping isn’t one of the many hats you wear, no problem; we cover plenty of other topics in here as well. And don’t forget to check out the annual HOT COMPANIES section, which starts on page 14. Whether you are looking for a solution provider to help solve an international shipping dilemma or any other problem a logistics professional may face, it’s likely you’ll find a mutually beneficial partnership in the following pages.

I look forward to seeing many of you at the PARCEL Forum in Dallas, September 12-14! As always, thanks for reading PARCEL.

CONNECT WITH US FOLLOW @ PARCELmedia Join PARCEL Magazine Group

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SPEND PERSPECTIVES

BY JOHN HABER

Cross-Border E-Commerce Solutions Grow hen we last focused on cross-border e-commerce, in the 2015 article, “E-Commerce Cross Border Parcel Shipping,” the market was ready to take off, and since then, it certainly has. In a recent study by Forrester, cross-border online B2C sales will more than double from 2015 to 2021 to $424 billion as more consumers embrace cross-border shopping. In particular, the research firm notes that developing economies in Latin America, Asia Pacific, Africa, and the Middle East will likely experience double digit annual growth over the next five years, significantly more than in Europe and North America.

Global marketplaces such as Alibaba, Amazon, and Japanese-based Rakuten are expected to benefit from this growing trend. Forrester noted that Rakuten reported a 41% growth in cross-border sales in 2015, more than twice the growth of the domestic Japanese e-commerce market. Furthermore, Forrester found that consumers in Germany, France, and the UK are active cross-border e-commerce purchasers, particularly from Amazon and eBay, which makes up half of cross-border e-commerce sales from these countries.

Logistics providers are also benefitting from cross-border online B2C sales, and are providing more than just transportation and warehousing services. Thanks to niche acquisitions, providers FedEx, Pitney Bowes, Singapore Post, and UPS are offering specific solutions for cross-border online sales to address common issues as language, currency, payment, and duties and taxes.

FEDEX CROSSBORDER FedEx’s acquisition of Bongo has been repackaged as FedEx CrossBorder and is a subsidiary of FedEx Trade Networks.

Among the solutions provided are regulatory compliance, duty calculations, package tracking, calculating international shipping costs, secure payment processing, multi-currency pricing, and credit card fraud protection.

PITNEY BOWES CROSS-BORDER E-COMMERCE In 2015, Pitney Bowes acquired Borderfree, which provides e-retailers in the US and UK with a variety of services, including localized e-retail sites for foreign consumers, prices in more than 60 currencies, customs clearance, and fulfillment services. The acquisition complemented Pitney Bowe’s existing solutions, which enables e-retailers to show shipping costs and customs fees to foreign consumers and to facilitate overseas shipments.

SINGAPORE POST Perhaps not a household name when it comes to US cross-border e-commerce solutions, Singapore’s post office has been reinventing itself into a major logistics provider. In late 2015, the postal operator acquired US-based TradeGlobal, which provides digital marketing, product fulfillment, and customer service for companies selling fashion, beauty, and lifestyle-branded products online in North America, Asia, and the United Kingdom. In addition, Singapore Post acquired US-based Jagged Peak, a company that provides logistics services for high-velocity consumer goods through 20 warehouses in the US. The two US acquisitions have been integrated into Singapore Post’s SP Commerce,

which includes web store development and operations, global fulfillment, omni-channel order management, cross-border commerce, performance marketing, and customer care services.

UPS IPARCEL In 2014, UPS acquired i-Parcel, which offers an integrated platform for US and UK merchants to link to e-commerce consumers in over 100 countries. The technology provides a localized look and feel on the respective merchant’s website and also offers fraud protection, fully-landed total prices — including customs duties and taxes — in local currency, and deferred international transportation as an option for low-cost goods.

CONCLUSION The list of cross-border service offerings grows on a regular basis, but determining the best solution for a retailer will depend on the retailer’s budget, requirements, and strategy. In the last issue of PARCEL, Mr. Iyer noted in his article, “Cross-Border 101: A Primer,” that there are differences between shipping internationally and cross-border trade.

Retailers must learn these differences, but also understand what the options are for each. In addition, beware of potential obstacles such as returns management, hidden charges such as country-specific duties and taxes as well as political situations such as the recent Brexit decision, which may change the dynamics of British cross-border e-commerce sales. ¾

JOHN HABER is the Founder and CEO of Spend Management Experts. Contact John at solutions@ spendmgmt.com.

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OPERATIONAL EFFICIENCIES

BY SUSAN RIDER

If I Could Read Their Minds! o some folks, managing people is the hardest part of being a leader. A local fast food manager told me last week he had two people call in to say they weren’t coming in because they found some Pokemons in a local area.

They didn’t even pretend to be sick; they just admitted they were playing Pokemon Go. What were they thinking? Why is there such a draw to that game? How can you make the workplace that exciting that people want to come to work?

Little time is spent in the workplace concentrating on making the workplace the place everyone wants to work, although managers will admit their jobs are easier when they have more tenured people. Therefore, it makes sense to focus on the workplace and make it more inviting, more challenging, and more desirable for every generation of associates. If you don’t have a creative human resource department, enlist associates that are creative to come up with fun, interesting instructional posters. Reward the most percentage of accurate orders with a fun cookout or something to make an 8-5 job fun.

New supervisors are usually promoted from associate position without any training. As if it doesn’t take any special training to be a leader; ha! Trust me; it does take special training to keep associates motivated and to discipline while encouraging people in order to keep them motivated to execute their jobs well. It’s very important, but not much time is spent wondering how to ignite passion among the team. With 8

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passion, you increase productivity and accuracy. Many managers look at purchasing software or material handling equipment to increase productivity, but if they would just look at motivating their workforce and developing a positive culture, they could do more with a lot less. How do you start?

The first step is to acknowledge that all people are different and the same leadership style may not work on some as it does on others. Just as a basketball coach may yell at some players to make them play well, some players totally melt when yelled at and give up. There are four basic personalities that people will fall into. Because I’m in the logistics world, I have renamed them. There’s Type A (the bulldozer), Type B (the ambulance driver), Type C (the submarine), and Type D (the hang glider). It’s helpful to identify what personality you fall into and to acknowledge your traits. Managers tend to treat the workforce the same as their own personalities and don’t acknowledge the personalities of the employees. Changing their style to fit the personality they are working with would reap better results.

For instance, if you have a task that is a one-person task and not a team job, pick a Type C to do it. Submarines just like to get a job and execute it (much like the submarine dives down to execute a task) and when the job is done, voila, they come up for air. A submarine would rather work alone than in groups. Submarines would have trouble in charge of a team meeting.

A hang glider just wants everyone to get along. Therefore, a hang glider usually will complete a task for an associate instead of confronting the associate for a job not done correctly. A hang glider will have trouble disciplining or firing an individual.

The ambulance driver is the person to call on for the “feel good” promotions.

They want to take care of everyone and would be a good nurturer for new people.

The bulldozers are the people that want your job or may be your boss. They just want to get the job done and often times don’t care who gets rolled over in the process.

The top leadership skills include the ability to communicate, delegate, provide feedback, be trustworthy, act as a positive team builder, and be creative and responsive. The typical manager skills still come in to play but if you can adjust your delivery, assignments, and reactions based on the associates’ personality and not yours, you will find it to be much more effective.

Besides personalities, managers now deal with new thoughts and trends of generations. The Gen X, or millennial generation, were born between the 1980s and 2000 and known as the entitlement generation. The next generation just now entering the workforce (16) are the Gen Z or the “Post” generation. The millennials require feedback good and bad. Remember they came from the generation of “everyone gets a trophy.” The positive thing about millennials is their “can do” attitude, and they have the confidence and positivity to complete a task. Millennials are also not afraid of technology or automation and adapt to it very well. They would be good trainers for the older workforce. Although they don’t always respond well to being managed, they expect a manager to seek out their opinions and ideas with respect.

Lead your team into greatness! ¾

SUSAN RIDER, Supply Chain Consultant, Executive/ Life Coach can be reached at susanrider@msn.com.

SHIP RIGHT

BY CHRIS GILES

Choose Your Carrier Wisely: Don’t Let New Fees Derail Your Shipping Operation t used to be that only high-volume senders had complete visibility into carrier costs. Their core business depended on efficient shipping to maximize profitability, and they invested significant time and resources in sophisticated systems to manage their multi-carrier relationships.

In the past, these sophisticated multi-carrier shipping systems required a level of investment and support that made them impractical for office shippers who send mail and parcels regularly, but at much lower volumes.

The default option for office shippers has typically been to track their parcel spend via multiple tedious spreadsheets and analyze their total cost of shipping after all the charges have been billed.

Until recently, overseeing sending costs after the fact didn’t involve too many surprises. But now the stakes are getting higher.

MORE COSTS AND MORE COMPLEXITY Last fall, private carriers hiked rates and re-configured dimensional ratings. January saw a rate hike for USPS Priority Mail and package services, plus its own set of dimensional surcharges.

As reported in PARCEL, FedEx has decreased the maximum length of packages not subject to its Additional Handling Fee. As of June 1, a $10.50 surcharge is now applied to packages whose longest side is 48 to 108 inches. Previously, a package with a longest side of up to 60 inches could be sent without a sur-

charge. UPS followed suit with the same fee and dimension limit, starting June 6. Incidentally, the fee itself was raised January 1, from $9 to $10.50 per package, a 17% boost, which now applies to a greater number of packages. This latest announcement is the sixth fee increase from FedEx and the seventh from UPS since the beginning of 2015.

Compounding the challenge for office shippers is the fact that many of these new fees are not readily visible to the sender.

Carrier sites give you base line pricing, but you may not know the price for other services upfront. For example, there may be a surcharge for delivery to a residential address. If you don’t check that box on the site, you won’t see the charge — typically around $3 per package — until you receive your invoice.

In a similar vein, many shippers don’t enter the actual weight and dimensions online. This can lead to additional charges and handling fees by the carriers. If your package exceeds the maximum length, you will incur an Additional Handling Fee, but you won’t see the $10.50 charge until your bill arrives. If you had known up front, you may have been able to re-package the shipment to avoid the fee and reduce your total cost.

You also may not know whether you’ve entered an incorrect address. If you have, your carrier will correct it and add a fee of $11 to $14 for the service. It doesn’t take much of an “error” to incorrectly address a parcel. In fact, any address that does not match what’s in the carrier’s database is defined as incorrectly addressed. For example, sending a parcel to “River Road” instead of “River Court” could cost you upwards of $14. Even for businesses that send a

relatively small volume of parcels, that’s a scary proposition.

OTHER SENDING TRENDS In many companies, shipping is done by multiple people across the organization.

This of course makes it even more difficult to get visibility into the total multi-carrier spend. It’s easy for an employee to go directly to a carrier site, enter a credit card, and ship. But it makes it much more difficult to see and manage the total shipping costs across the company.

In addition, it often prevents adherence to standardized shipping practices. As a consequence, individual senders may not be leveraging the carrier’s corporate discounts, since contracted rates cannot be easily shared among fragmented sending operations, and could be selecting carriers based on personal preference at greater cost to the company.

Without visibility of your total shipping volume, you may not qualify for the best negotiated rates from your carriers. Likewise, a standardized corporate sending policy may not be the most advantageous when it doesn’t factor in the entire sending operation.

The point is, office shippers need the same total visibility into carrier costs as high-volume senders. Fortunately, affordable multi-carrier solutions are now available in the cloud that offer greater visibility into sending costs and help businesses select the right carrier for each package. Finally, small- and medium-volume senders will be able to choose their carriers wisely! ¾

CHRIS GILES is Vice President, Business Development, Global Product Management, Pitney Bowes.

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SUPPLY CHAIN SUCCESS

BY JESSE GATES

Common Transportation Data Sources and Applications oday’s transportation environment is driven by using data to make critical decisions. Whether the focus is a concentrated carrier sourcing event or a company-wide network realignment, the first step is the assembly of pertinent data.

That is why it is paramount to understand the different subsets of transportation data and how they are best used in practice. Transportation data can be gathered from a variety of sources, but three of the most common sources are Transportation Management Systems (TMS), carriers or 3rd Party Logistics (3PL) providers, and invoice data. This article breaks down each subset and establishes the appropriate applications for each data type.

There are many ways to take advantage of well-maintained TMS data. It is an excellent data source for creating unbiased key performance indicator (KPI) metrics. This is because the TMS is generally owned and operated by the company itself and contains data on all carriers, transportation modes, and business units. Many times relying on carriers to provide on-time performance metrics on themselves results in well overstated figures. Only data from your own planning tool can objectively capture and standardize performance metrics across your transportation network. Additionally,

data extraction. 3PLs often include limited levels of TMS access and data availability. If your company does business with several carriers, then standardizing each carrier’s data format will likely be required to drive any value. Additionally, companies are exposed anytime they rely on a transportation partner as a data source in several alarming ways. First, the data attained may be limited in completeness and/or relatability to internally held company data. Second, the data has the potential to be inaccurate or presented in a way that positively reflects carrier performance, while hiding service failures.

And finally, in the event a carrier relationship is strained or severed, there is no guarantee of retaining access to this data source.

As mentioned above, the ability to capitalize on carrier-provided data often hinges on the level of completeness and depth. Carrier data containing complete lane, cost, and shipment or package characteristics is invaluable during sourcing engagements. By aggregating and standardizing data from all carrier partners, companies can be successful in structuring RFPs that target key impact areas. In the absence of a TMS or execution platform, carrier data can also be used internally to better understand things like inbound vendor management and carrier compliance, service level and mode utilization, and average shipment characteristics.

If your company does business with several carriers, then standardizing each carrier’s data format will likely be required to drive any value.

TMS DATA TMS data is an extremely flexible and useful source of insight into any company’s transportation activities. Depending on the tool the data is sourced from, reporting can usually be done ad-hoc, encompassing multiple levels of transportation records (orders, shipments, loads, etc.)

Unfortunately, the level of investment can be too high for many companies to adopt.

TMS implementations can incur significant costs, both in human and financial capital. However, the investment allows for complete ownership and control over your company’s transportation data.

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TMS data is usually a requirement anytime a network analysis or restructuring is considered. Unlike other data types, TMS data is the most likely to contain planning characteristics and item/order level characteristics. These data elements are critical in building modelling scenarios to evaluate the impacts of any network change.

3PL / CARRIER DATA Carrier sourced data comes in a very wide variety of formats. In many cases this data is sourced via an intermediary (carrier rep, broker, etc.), but there are also a significant amount of carriers that have online portals that allow for limited TMS like

INVOICE DATA Invoice Data also ranges widely in format

types and level of detail. Parcel carriers, such as UPS and FedEx, generally provide a tremendous amount of detail in their invoice data, making it the preferred data for parcel focused engagements. Other types of carriers on the other hand may only provide the bare minimum data detail in order to process payment. In cases where your company or your carriers do not engage in automated invoice data feeds (EDI, XML, FTP, etc.) the data may be sourced from paper invoices keyed into an accounts payable system. This tends to be problematic as it results in non-standardized formats and human errors such as miss-keys and omitted data fields.

There are upfront costs in establishing this automated feed but in many cases carriers are happy to work with companies to mitigate these costs as there are benefits on the carrier side as well. Automated

invoicing reduces the amount of administrative hours required on the carrier end as well as expediting their receivables.

One major downside of invoice data is the time delay between execution and billing.

Depending on the invoice schedule of the carrier or partner, invoice data may only be available several days or weeks after a shipment is executed.

Invoice data is primarily used for audit purposes. Auditing of parcel and freight bills adds value by ensuring the accurate rating of shipments and correct application of accessorial and fuel surcharges. Invoice data can be directly compared to TMS data to identify cost variances and produce exception reports. If no TMS data is available, companies often contract with audit service providers that can simulate carrier contracts and execute audit and pay activities with a basic invoice data feed.

Understanding best practices when it comes to data collection and application is critical in today’s data driven business environment. Transportation data comes in many shapes and sizes, making it difficult for many companies to capitalize on.

However, organizations that take the time to understand the data available to them are best positioned to enable successful engagements that drive value. ž

JESSE GATES is an Analyst with the Transportation Consulting team at enVista. He interacts with client data to support strategic negotiation initiatives that drive savings. His experience in freight brokerage, manufacturing, and wholesale distribution throughout his career provides a unique perspective to freight assessment, analytics, and sourcing projects.

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TO SUM UP...

Think About It

Whether a company fulfills orders from a single warehouse or from hundreds of locations, it will always need competitive shipping costs. For many online retailers, the ability to procure lower shipping costs allows them to pass the improved rates on to their shopping cart platform, consequently enabling them to win new customers.

— TREVOR OUTMAN

Carriers typically target their most utilized areas for higher increases — the areas in which they want to improve their margins the most. The result, of course, is that shippers who do not uniformly utilize every shipping category in the way the GRI outlines (AKA, the vast majority of shippers) will experience a higher rate increase than what is reported in the GRI. — ANDY BRUECKNER & TRAVIS RHOADES

THE LIST OF CROSS-BORDER SERVICE OFFERINGS GROWS ON A REGULAR BASIS, BUT DETERMINING THE BEST SOLUTION FOR A RETAILER WILL DEPEND ON THE RETAILER’S BUDGET, REQUIREMENTS, AND STRATEGY.

— JOHN HABER

The steady shift in trade models increases the opportunities for Chinese merchants and product manufacturers to sell their products directly to the American consumer. However, these opportunities come with a number of challenges.

— DOUG CALDWELL 12

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In many companies, shipping is done by multiple people across the organization. This of course makes it even more difficult to get visibility into the total multi-carrier spend.

I think we can all agree for most businesses to grow, or just compete within their industry, they typically need to ship or receive a product. The average business day sees over 35 million new packages moving through the network.

TMS data is an extremely flexible and useful source of insight into any company’s transportation activities.

Depending on the tool the data is sourced from, reporting can usually be done ad-hoc, encompassing multiple levels of transportation records (orders, shipments, loads, etc.)

— BRIAN H. STERNBERG

— JESSE GATES

— CHRIS GILES

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H O T

COMPANIES Of the many factors driving innovation in the world of e-commerce package and parcel supply chain and logistics, “speed” or “same-day delivery” has become the Holy Grail of modern-day Silk Road crusaders.

This hope is fueled by a number of game-changing innovations creating new value in the economics of supply chain and logistics – innovations based on years of experience in printing, labeling, processing and delivering mail workflows operating at tens of thousands of pieces per hour.

2016

But how does it all come together?

Most pick-pack-ship distribution centers have human operators who are fed a line of items, insert the items – along with filler material – into pre-made packing boxes, and then glue or tape it shut. But even the best e-commerce players say that their operators complete an average of 75 boxes an hour.

Bell and Howell has combatted this inefficiency by introducing a system that measures the dimensions and weight of the object, and then dynamically creates packages in-line by cutting, scoring and folding carton stock automatically. Its CartonWrap system dynamically creates up to 1000 ready-to-ship boxed parcels per hour, all without manual intervention. This solution not only deals with labor automation and improving workflow speeds, but also eliminates filler material required in the traditional one-size-fits-all packaging operation, and helps reduce dimensional weight (DIM weight) expenses.

Bell and Howell has rethought the process of applying labels to the packages via its patented high-performance print-and-apply labeling system, which averages up to 70 labels per minute onto packages that can vary by as much as 36” (1m). This performance is enabled by an integrated, dynamic print-cut-apply head and by the fact that the liner-free labels require no label peeling and generate no backing waste.

Most packages are delivered by a carrier to a residence or retail location. However, today’s busy consumer is often unavailable to pick up the package during normal retail hours or to sign for it at their home. The latest game-changing innovation in the smart locker space – PackRobot – combines sophisticated robotics and a dynamic shelving system into a climate-controlled outdoor enclosure with capacity for up to 500 packages, bringing dramatic efficiency gains to this already convenient solution.

CONTACT INFO: COMPANY: Bell and Howell, LLC

PHONE: 800.792.4782

WEBSITE: BellHowell.net

H O T

COMPANIES IMPROVE TURN-AROUND TIMES As e-commerce volumes increase, you may find yourself trying to handle a larger capacity through the same facilities. Additionally, more consumers opt for priority overnight delivery. Both factors put pressure on you to optimize the parcel handling process. Installing Caljan Telescopic Conveyors at your doors will help you speed up loading & unloading. The conveyors are able to handle small and large parcels, moving any load the operator can lift smoothly into the sortation system. Once the vehicle is (un)loaded the conveyor quickly retracts and the operator is ready to (un)load the next vehicle.

2016

REDUCE COST PER PARCEL Boasting a 5-year structural warranty, Caljan Telescopic Conveyors are future-proof & built to last. The universal multi-connector makes it easy to upgrade or modify the unit, to meet your future requirements. Get more out of your investment, by utilizing the same Telescopic Conveyor at multiple doors. Once the vehicle starts to draw away from the dock, the conveyor can slide along rails to the next door and begin loading or unloading.

FROM VAN TO 45’ TRAILER The height of a Caljan Telescopic Conveyor can be adjusted, so that the same unit can be used to load/unload multiple vehicle types. The impressive extendibility means the operator can work quickly and smoothly even when inside the last 3 ft of the vehicle.

ATTRACT/RETAIN EMPLOYEES Working inside trucks and trailers doesn’t need to be dark and uncomfortable. Numerous optional features allow us to customize each unit to fit your precise requirements: a platform brings the operator to an appropriate working height, a belt extension brings the parcels to the conveyor. It is even possible to heat the work area & circulate air. The incredible front lighting and floor illumination is standard on every conveyor, providing a really bright work environment.

YOUR LOCAL PARTNER Whether you are in the early exploration stage, or in need of service, Caljan Rite-Hite is able to meet your needs. Together we consider possibilities and find the right solution, supporting you at every step, including installation and maintenance.

CONTACT INFO: COMPANY: Caljan Rite-Hite

PHONE:

800.338.1751

WEBSITE: caljan.com

EMAIL:

parcel@caljan.com

H O T

COMPANIES PARCEL AUDITS Reduce parcel costs and save money with the industry’s most advanced and comprehensive package audit program. CTrak’s proven benefits include a completely automated, Global audit system that delivers maximized savings.

Customized Accounting Services: CTrak provides automation for general ledger account code allocations for every shipment and visibility of details at the shipment level. Complete automation ensures all pricing conditions & costs are rated including: optional bundled pricing rates, for all countries, for all currencies, including hundred weight pricing and third-party shipments.

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Reporting: CT’s Cognos Business Intelligent Reports, Graphs and Dashboards produce effective and efficient management insight into your total freight spend.

CONFIDENCE 93 years of experience allows us to create a full range of freight management solutions. CT will work with you, creating customized solutions so that you can focus on your firm/s core competencies -ensuring a quality, efficient, effective and robust supply chain management system for your global needs.

TRUST Firms of all sizes, including Fortune 100 corporations around the globe, rely on CT Logistics to assist them in making solid, informed decisions regarding their freight audit, payment and business intelligence needs. Our team of professionals has been instrumental in assisting our clients in leveraging expertise, technology and best-in-class processes to maximize return on the client's investment. SOC II and ISO 9001:2008 certified.

LEADERSHIP With FreitRater , the industry's first choice for freight management software, AuditPay™, TranSaver™ and CT’s TMS software, our customized solutions for your global freight payment systems and solutions will exceed your expectations. ™

CONFIDENCE, TRUST AND LEADERSHIP ... TRADITIONS SINCE 1923 These attributes are woven into our corporate philosophy, the foundation and tradition that our clients have relied on for 93 years. Our evolving services and software will enable you to better manage and reduce supply chain costs while adding more visibility and control to your organization, positively impacting your bottom line; that's our commitment to you.

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CONTACT INFO: COMPANY: CT Logistics

PHONE:

216.267.2000

WEBSITE: ctlogistics.com

EMAIL:

sales@ctlogistics.com

H O T

COMPANIES The entrepreneurial spirit is alive and well, and has been thriving for nearly 30 years at CubiScan®, located in the heart of Farmington, UT. CubiScan’s innovative dimensioning and weighing systems have propelled it from its inception into today’s world of e-commerce and global distribution of anything and everything imaginable.

In an effort to minimize rising parcel shipping costs and increase accuracy, overall efficiency, and customer satisfaction, the CubiScan 75 was born. This new cutting-edge measuring device delivers an impressive parcel dimensioning solution for shippers to proactively take action against ongoing dim-weight shipping charges.

2016

The new CubiScan 75 uses ground breaking 3D sensing technology to instantly measure an item, is specifically designed to be easily installed above an existing shipping station, and integrates easily with many shipping software programs such as UPS WorldShip® and Fedex Ship Manager®. It includes a unique live video display that confirms item placement and displays critical dimensional data for user verification.

The CubiScan® 75 is an advanced overhead 3D dimensioning system designed to quickly and accurately measure parcels within the common shipping line. This new cubing device will instantly measure boxes and irregular-shapes such as polybags, tubes, and many other custom packages with precision, ultimately saving shippers thousands of dollars a year on escalating shipping costs. The CubiScan 75 is an essential tool to minimize costly dimensional (dim) weight shipping charges.

CubiScan has established itself as the global choice for dimensioning and weighing systems for almost 30 years and continues to be the proven leader in parcel dimensioning.

CONTACT INFO: COMPANY: CubiScan

PHONE:

801.451.7000

WEBSITE:

www.cubiscan.com

EMAIL:

info@cubiscan.com

H O T

COMPANIES Engineering Innovation, Inc. is dedicated to providing cutting edge solutions that offer maximum postage savings, excellent service and support, and the best of class technology and engineering to our customers.

EII combines more than 30 years of mailroom experience with over 20 years of postal automation design experience to develop solutions that work for mailers of all volume sizes and mail classes. EII’s systems combine the best data capture with the finest parcel transport (including polybags) in the industry. Our software, as reported by current users, “is second to none!”

EII’s parcel solutions include the revolutionary EZ-WorkDesk and EZ-Parcels systems which rapidly process parcels for induction and routing. EZ-WorkDesk provides quick parcel induction capabilities with the lowest initial investment The EZ-WorkDesk integrates data conversion tools to capture information from multiple platforms and warehouse management system environments to generate shipping labels on demand.

Our latest is the EZ-Parcels Modular Parcel Solution (MPS) that provides custom-off-theshelf options to perfectly fit your needs. The EZ-Parcels MPS can feature barcode and OCR reading, weighing, dimensioning, RFID, label application, and comes in a variety of speed ranges to meet the end users’ needs and budget. This solution can be customized to fit the needs of each company due to the modular design. EZ- Parcels MPS is ideal for Outbound Processing, Data Capture, Parcel Induct, and Logistics companies.

In line with EII’s commitment to provide the mailing industry with cost effective solutions for maximizing postage savings, these systems open up new savings/revenue opportunities for fulfillment, consolidators, returns package processing, mailers, and shippers. All equipment includes options for Wide Area Barcode Reader, UMove Move Update processes, processing International Mail, and Inbound Mail. We compliment these great products by providing hardware and software service after the sale designed to ensure our customer’s success.

This fall, EII will be celebrating its 10th anniversary of providing innovative and cost effective automated parcel solutions. EII has grown from a start-up of three guys in 2006 to a diverse and skilled team of more than 60 employees in 2016, and we look forward to many years of continued growth as we keep pace with the dynamic letter and parcel industry.

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2016

CONTACT INFO: COMPANY:

Engineering Innovation, Inc.

PHONE:

800.350.6450

WEBSITE:

www.eii-online.com

EMAIL:

sales@eii-online.com

H O T

COMPANIES Optimize your global transportation strategy with enVista. enVista delivers leading transportation spend management services that reduce cost and improve visibility for clients worldwide. enVista’s experienced team of transportation management professionals and former carrier pricing managers bring significant expertise reducing transportation spend and optimizing transportation operations.

2016

Services & Solutions: } Global Freight Audit & Payment } Proprietary Audit, Rating and GL Allocation Platform } Carrier Contract Analysis & Negotiation } Managed Operations } Transportation Consulting } Business Intelligence } Capacity Procurement Solutions Expertise: } 1,000+ clients across multiple industries } Robust methodology } Comprehensive multi-lingual, multi-currency implementation capability } Highly experienced team of transportation experts } Inc. 500|5000 fasted growing transportation & logistics company (five consecutive years) Client Testimonial: “enVista has provided significant value to Vera Bradley by identifying service failures and other invalid changes by working with our carrier to retrieve the appropriate credits.

In addition, enVista has given us the visibility to cost savings opportunities and has helped up reduce our annual transportation spend by renegotiating our parcel contract.”

- VP Operations, Vera Bradley Improve profitability. Reduce waste. Enhance customer service. www.envistacorp.com | 877.684.7700

CONTACT INFO: COMPANY: enVista

PHONE:

877.684.7700

WEBSITE:

www.envistacorp.com

EMAIL:

info@envistacorp.com

H O T

COMPANIES WHO WE ARE: FP International, founded in 1968 and based in Fremont California, is a global leader of innovative protective packaging products and systems. From the company’s beginning, we understood the value of listening to our customers and understanding their needs.

That’s why we invested in the R&D necessary to provide solutions for virtually every industrial and retail on demand protective packaging environment.

2016

WHAT WE OFFER: Retail Solutions The MINI PAK’R Retail machine fits in the smallest of spaces and is offered to this market with seven different film types. MINI PAK’R air cushions are recommended and used in thousands of locations by the world’s largest parcel shipper. It is also in thousands of SHIP-FROM-STORE locations to fulfill packaging requirements where space is at a premium and efficiency is critical. The MINI PAK’R has RFID technology, which automatically adjusts the machine to the proper settings for each film type, making film changes quick and easy.

Industrial Solutions Industrial warehouses and 3PLs value the efficiencies that result from using the proper protection and equipment. The MINI PAK’R Industrial machine was developed for small pack station areas and to increase productivity in warehouses packaging a variety of products, where multiple stations are required. The PRO PAK’R is a workhorse machine with the versatility and speed to optimize packaging productivity in both centralized and decentralized environments. The POWER PAK’R, producing 120’ of on demand air cushions per minute, is the fastest machine in the industry. All machines offer multiple air cushion configurations, RFID technology, and product protection that is sustainable and environmentally friendly.

CONTACT US: FP International, our customers are proof of our success! We are proud to contribute to the successful shipment of millions of products every year. To learn more, please contact: Jim O’Shaughnessy, Director of Marketing, 708-589-6523 or Jim.OShaughnessy@fpintl.com.

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CONTACT INFO: COMPANY: FP International

PHONE:

708.589.6523

WEBSITE:

www.fpintl.com www.minipakr.com

EMAIL:

Jim.OShaughnessy@fpintl.com

H O T

COMPANIES What We Do FirstMile is the one of the fastest growing shipping logistics providers with strategic partnerships that include carriers like DHL, FedEx, USPS, and Canada Post. We specialize in complete front-end solutions for domestic and international shippers in eCommerce and direct-to-consumer industries. Our solutions include front-end technology, multichannel software, multi-carrier services, as well as daily pickups and injections. These solutions provide clients with cost savings, error reduction and customer satisfaction.

2016

Why Customers Care FirstMile Specifically helps customers: } Increase bottom-line revenue through shipping rate reduction } Decrease time spent on shipping processes through integrated shipping systems } Access personalized systems and tools that allow transparent shipping management } Utilize multi-carrier shipping options through FirstMile’s strategic partnerships Who Uses FirstMile FirstMile clients are small to medium-size eCommerce companies shipping as few as 50 orders or as many as tens of thousands each day. They ship domestically and internationally, wanting to realize “high-volume” pricing incentives that only large corporations can enjoy. They need efficient and effective labeling, tracking, transit, pick-up, and insertion into the mail streams for destination delivery.

"E-commerce shipping starts here"

CONTACT INFO: COMPANY: FirstMile

PHONE:

855.go1stmile

WEBSITE:

www.firstmile.com

EMAIL:

sales@firstmile.com

EXECUTIVE PROFILE

H O T

COMPANIES Parcel Spend Management solution Green Mountain Technology provides a technology and resource platform for sustainable Parcel Spend Management. GMT partners with the largest parcel shippers in the U.S. to create customized, big data platforms that drive improved cost and service outcomes.

GMT’s analysts and engineers partner with shippers to leverage this platform to plan, monitor and execute a high performing parcel network, allowing shippers to make significant decisions, faster. Leading-edge technology forms the foundation of GMT’s comprehensive solution, and GMT’s deep parcel expertise and ongoing partnership model drive powerful results. Current GMT customers represent a total of $4 billion in annual parcel spend. Year-over-year savings for GMT’s customers are consistently 5 10X the annual fees.

2016

Deep Parcel Expertise GMT specializes in parcel – in fact, it’s all we do. With parcel volumes and associated costs steadily increasing, to remain competitive companies are required to take a deep dive into their parcel. Most shippers don’t have the time or resources for this, and for many it remains a costly missed opportunity.

GMT extends your technology, bandwidth and resources so you can move from macro to micro management of your parcel network. GMT establishes an ongoing partnership with customers so your goals become shared accomplishments and your successes becomes our priority. We’ve engineered a business process and proprietary technology to give you every resource needed to plan, monitor and execute your parcel network at the highest level.

Why the Largest Parcel Shippers are Choosing GMT GMT’s solution addresses the greatest needs and challenges of high volume shippers.

Our solution exponentially expands your resources and bandwidth by providing a big data platform, parcel expertise and a unique market view which results in improved outcomes. No other company possesses the superior, foundational technology needed for deep analysis or the unique business model enabling a strategic engagement with dedicated parcel experts. Because we work exclusively with the largest parcel shippers in the U.S., we are able to identify patterns and trends to keep you on the cutting edge of best in class parcel network execution.

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CONTACT INFO: COMPANY:

Green Mountain Technology

PHONE:

877.397.2834

WEBSITE:

GreenMountainTechnology.com

EMAIL:

contact@gmcps.com

Priority.

Ground.

Freight.

H O T

www.gso.com

Providing Overnight Delivery Since 1995

COMPANIES In business since 1995, GSO is a regional carrier offering Priority Overnight, Next-Day Ground parcel and LTL service throughout California, Nevada, Arizona, and New Mexico.

By focusing on a specific geographic footprint, GSO can provide its customers with the flexibility, convenience, cost savings and customer service that other carriers can’t match.

Our Next-Day Ground service delivers packages overnight across a vast geography that the global carriers would take multiple days to deliver. GSO Freight, with its straightforward per-pallet pricing model and next-day delivery, has simplified the LTL shipping process by eliminating the complicated shipping routines that come with using a traditional freight vendor. And for customers who need Priority Overnight delivery service, GSO Priority offers shippers later pickup times, Saturday delivery, and cost savings of 40% when compared to the global carriers.

2016

With Priority, Ground, and Freight service, GSO can accommodate the shipping needs of thousands of companies across a variety of industries, while focusing on unsurpassed customer service and specialized account management operations to fit specialized shipper requirements. To meet the technological needs of shippers, GSO continuously invests in innovative technology that allows for integration with enterprise and third-party systems, real-time tracking, POD capture, and robust reporting capabilities.

While GSO has seen tremendous growth over the years—with 36 distribution centers and thousands of packages delivered each day—our small-company values remain intact. We make it a point to provide a high level of personalized service with a dedicated customer service center and an account management group that can assist with any questions or issues.

Key benefits of using GSO for your CA, AZ, NV, and NM shipments: } Reduced transit times with next-day ground delivery across a vast geographical footprint } Per-pallet rates and simplified labeling for LTL shipments } Priority overnight services at nearly 40% less cost than national carriers } Later pickups and earlier arrivals } Exceptional customer service with a personal touch } Fewer and lower accessorial fees }EXECUTIVE Innovative technology } Employee-based delivery model

PROFILE

Let GSO help solve your shipping challenges. Contact Us today.

CONTACT INFO: COMPANY: GSO

PHONE:

888.744.7476

WEBSITE: www.gso.com

EMAIL:

sales@gso.com

H O T

COMPANIES LeanLogistics Honeywell Sensing and Productivity Solutions is a global leader in enterprise and workflow performance solutions designed to enable companies to achieve higher performance across their value chain. Customers rely on Honeywell’s integrated solutions, including cloud-connected mobile worker applications and high-performance data collection hardware, to enrich operational intelligence with data-driven insights that enable them to make better business decisions.

2016

Honeywell’s data-driven technologies deliver real-time information exactly where it’s needed so companies have complete and timely visibility of their goods at all times. Embedding data-driven decisions, powered by analytics, empowers organizations to accurately track every item throughout the supply chain and improve efficiency, saving immeasurable hours in cross docking, yard management, and pickup and delivery operations: Postal / Courier / Express / Parcel Develop a high-achieving workforce with Honeywell. Our integrated, mobile workflow solutions equip you to elevate productivity, quality and responsiveness in your core endto-end operations – all of which leads to a more competitive, more profitable enterprise.

Fleet Management Boost your fleet’s efficiency and safety with our agile workflow solutions. Through proactive fleet management, you can increase vehicle lifecycle, performance and efficiency, preventing unplanned downtime and customer dissatisfaction.

Ports and Intermodal Six of the world’s 10 largest ports and 300+ ports and intermodal facilities worldwide count on Honeywell. Why? Because we understand the industry’s unique requirements. And our workflow solutions enable a more connected, more agile workforce for greater performance For more information, please visit: Honeywell Sensing and Productivity Solutions 9680 Old Bailes Road Fort Mill, SC 29707 800.582.4263 www.honeywellaidc.com 26

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CONTACT INFO: COMPANY:

Honeywell Sensing and Productivity Solutions

PHONE:

800.582.4263

WEBSITE:

www.honeywellaidc.com

H O T

COMPANIES Intelligent Audit provides shippers with a global, all-mode transportation audit, recovery, freight payment and business intelligence reporting partner. As the trusted transportation savings partner for more than 2,000 shippers worldwide, Intelligent Audit continually improves on its best-in-class technology in order to provide clients with an unparalleled mix of analytics and reporting. IA boasts an experienced staff of transportation and logistics professionals who offer cost savings expertise and incomparable client service. With its combination of dynamic technology and seasoned staff, Intelligent Audit is the true partner and trusted advisor every shipper needs. Some of IA’s cost-cutting services include:

2016

Freight Audit, Recovery & Payment Intelligent Audit takes a 360-degree approach to transportation recovery—meticulously auditing, analyzing and reporting across all modes, locations and systems. Using its proprietary software, IA’s small parcel audit is the most thorough solution on the market, catching overcharges due to late shipments, duplicate billing, residential adjustments, address corrections and more. Such a comprehensive audit maximizes the hard-dollar recovery from carriers and helps prevent future overcharges from occurring.

Loss and Damage Claims Management As one of the only freight audit companies that provides an end-to-end solution for loss and damage claims, Intelligent Audit streamlines this labor-intensive process and reduces your internal costs while improving service to your customers.

Financial Logistics Intelligent Audit’s financial logistics processes are deployed within some of the world’s largest shippers, providing them with the detailed cost allocation and forecasting information required in order to truly understand their overall logistics cost down to the item or SKU level.

Analytics and Information Management Intelligent Audit provides a dependable, real-time reporting solution to help your team make smart business decisions – including carrier choice, mode and service level management, and shipment consolidation.

Supply Chain Consulting and Systems Integration Whether negotiating a new carrier contract or evaluating locations for a new distribution center, IA clients receive unparalleled consulting from our team of industry veterans.

Intelligent Audit can create customized solutions for a wide range of cost-cutting projects, from network and operations analyses to TMS, Accounting and WMS integration.

CONTACT INFO: COMPANY: Intelligent Audit

PHONE:

404.750.4413

WEBSITE:

IntelligentAudit.com

EMAIL:

Sales@intelligentaudit.com

H O T

COMPANIES Warehouse Management Solutions (WMS) Warehouse-LINK® Warehouse Management Solutions (WMS) from Interlink Technologies utilizes bar code and mobile computing technology to provide web-based access and real-time information to get control of inventory, boost productivity, and increase profits.

Warehouse-LINK® Features Warehouse-LINK® is a business system designed to support all distribution activities.

Multiple receiving, putaway, picking and shipping options allow flexibility, scalability, auditing and tracking for complete management of warehouse operations. Functionality, such as cross dock, speeds up order processing and eliminates putaway so that product is shipped immediately from receiving or manufacturing. Shuttle transfer provides movement between facilities without creating an order while still generating BOL. Warehouse-LINK® also provides yard management for scheduling inbound/outbound shipments, and managing dock and yard locations as well as storage containers. Order changes are real-time, easy and verified before shipping.

Value Add Warehouse-LINK® WMS includes management for kitting, lot/batch/serial numbers, environmental requirements, hazmat, seasonal products, QC, and cycle counting.

Warehouse-LINK® operates in any warehouse environment, including 3PL, Pharmaceutical, Food, Healthcare, Retail, Automotive, Electronics, Manufacturing, and Distribution.

Warehouse-LINK® is a multi-building, multi-company, multi-location system that allows you to manage independently or dependently. Interlink provides compliance labeling and integration with FedEx, conveyers, scales, pick-to-light systems, CubiScan, automated scanners and ERP/accounting systems.

Other Benefits Warehouse-LINK® provides the opportunity to utilize space more efficiently, incorporate JIT processes and accommodate growth without adding additional real-estate. Using cycle counting with Warehouse-LINK® eliminates physical inventory counts. Increase productivity and labor with system directed tasks.

Budget Friendly ROI is typically 6-18 months with a low cost of ownership. Licensing is based per concurrent user. Interlink is consistently ranked in the Top 100 Technology providers and provides a turn-key solution including software, hardware, project management, system integration, training and support. Think Interlink for your WMS solution!

2016

CONTACT INFO: COMPANY:

Interlink Technologies

PHONE:

800.655.5465 or 419.893.9011

WEBSITE:

www.thinkinterlink.com

EMAIL:

info@thinkinterlink.com

H O T

COMPANIES About Us A worldwide leader in logistics software, Kewill empowers organizations to efficiently MOVE goods and information across the global supply chain.

Kewill delivers quantifiable value to our customers by forging long-term partnerships that enable them to minimize risk, grow their business and respond to changing market dynamics. The Kewill MOVEŽ platform helps companies collaborate, reduce costs, manage volatility and automate processes across the entire supply chain – from transportation and warehousing to compliance and visibility.

2016

Kewill, a Francisco Partners portfolio company, supports supply chain execution activities for more than 7,500 companies in over 100 countries.

Our Solutions Transportation Management Boost the Speed, Accuracy and Transparency of Your Global Transportation Customs Management Lower Risk and Streamline Cross-Border Shipments with Multi-Country Customs and Trade Compliance Warehouse Management Manage Warehouse Operations and Inventory Movement with Optimal Efficiency Visibility & Collaboration Gain Visibility across Your Supply Chain, Effortlessly Collaborate with Business Partners and Harness the Power of Data Analytics For more information on how Kewill can help smarten your supply chain, contact us at www.kewill.com.

CONTACT INFO: COMPANY: Kewill

PHONE:

978.482.2500

WEBSITE: www.kewill.com

EMAIL:

info@kewill.com

®

LaserShip is a parcel carrier facilitating last-mile delivery to the eastern U.S. for shippers that desire reduced transit times and increased flexibility within their supply chain. With a footprint covering 22 states and Washington, D.C., LaserShip is able to reach over 100 million consumers, making it the leading provider of same-day and nextday delivery services for premier e-commerce and product-supply businesses. LaserShip offers seven-day delivery options with same-day services available in 14 metro markets all while offering full visibility into the status of packages.

H O T

COMPANIES

2016

Last month marked 30 years since LaserShip’s first delivery in 1986. Today, deliveries are made by way of 67 distribution centers and four sort centers. LaserShip has not only consistently expanded to keep up with the e-commerce demand as proven by its growth, but has also made technological advances in order to improve its operations and fulfill shipper and consumer demand. This year, LaserShip partnered with OpenLogix, an IBM Premier Business Partner, to develop its omni-channel digital and mobile strategy in order to provide a personalized experience for its customers and, most importantly, consumers. The first of four parts of the strategy will enable LaserShip to choose touch points throughout the service lifecycle through a mobile app and is currently in its testing stages. In addition to its digital strategy, LaserShip announced it will be revealing a brand new website later this year.

To find out more about LaserShip’s shipping solutions and to meet the team, visit booth #441 at the Parcel Forum this September. See you in Dallas!

CONTACT INFO: COMPANY: LaserShip

PHONE:

703.761.9030

WEBSITE: lasership.com

EMAIL:

solutions@lasership.com

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H O T

COMPANIES LeanLogistics LeanLogistics, a Kewill Company, provides solutions to streamline supply chain networks with transportation management system applications and services. The LeanLogistics Transportation Network is one of the largest on the market providing customers actionable intelligence to make better business decisions. LeanTMS is an easy-to-use transportation management system with robust functionality. As a true SaaS model, users benefit from faster innovation, scalable solutions, and a density of information for accurate benchmarking. LeanLogistics is always driving innovative solutions that deliver quantifiable value to our customers.

2016

LeanParcel Powered by LeanTMS Don’t let parcel planning slow down the speed of your supply chain. Optimize your parcel shipments to save time and money with LeanParcel. A module of LeanTMS, LeanParcel is a new tool for your TMS toolbox. Now you can plan and execute parcel shipments in one system.

Delivering Value to Multimodal Shippers LeanParcelÂŽ delivers end-to-end parcel mode planning and execution for multimodal shippers on one system and workflow. Shippers can see real time parcel rating information when evaluating the best carrier and service options. If the parcel is not a rush delivery, LeanParcel will provide optimization opportunities to reduce delivery costs. The software will drive efficient parcel finalization and label printing for the production line.

LeanParcel is connected to parcel carriers to ensure label compliance and actionable tracking information at all times. Since LeanParcel is a module of LeanTMS, all data for multimodal transportation is housed in one system for actionable intelligence across the entire supply chain LeanParcel Features: } Parcel Rating } Optimization } Integration with Parcel Carriers } Responsive Label Printing } Parcel Tracking } Invoice Matching } Product Level Cost Allocation } Analytics

CONTACT INFO: COMPANY: LeanLogistics

PHONE:

866.584.7280

WEBSITE:

www.leanlogistics.com

EMAIL:

solutions@LeanLogistics.com

H O T

COMPANIES Only LSO™ combines the speed of a courier, the discipline of a carrier and the service of a true partner. Our one-of-a-kind shipping model enables us to deliver your own personal rapid delivery system. We offer reliable, efficient package delivery services to every address in Texas, southeastern New Mexico and all major metro markets in Oklahoma, Louisiana, Arkansas, Alabama & Tennessee, plus the country of Mexico. More responsive, more flexible and more friendly than any other shipping company. That's the power of LSO.

2016

Why Switch to LSO? We can help you reduce rates and turn your parcel shipping into a competitive business advantage.

How we help you: } We’re built for SPEED – so you can out-run your competition } We ADAPT our operations to your business – so you can be more efficient } We’re making delivery PERSONAL again – so you can stand out with your customers LSO Parcel Express and Ground Delivery Services } LSO Early Overnight: 8:30 A.M. Guaranteed Delivery } LSO Priority Next Day: 10:30 A.M. Guaranteed Delivery } LSO Economy Next Day: 3 P.M. Guaranteed Delivery } LSO Saturday Delivery: Saturday Guaranteed Delivery } LSO Ground: Day Definite Ground Delivery } LSO eCommerce Services: Cost effective Guaranteed Delivery in specific metro markets } LSO Home Health Services: “Over the threshold” Delivery

COMPANY: LSO

PHONE:

800-800-8984

LSO Final Mile Services } LSO Same Day: Same Day Guaranteed Delivery } LSO On-Demand } LSO Scheduled/Routed Delivery } LSO Warehousing Services Plus } Online Shipping and Tracking } Detailed Customer Billing } Conveniently Located Drop Boxes } Reward Programs for Loyal Customers

CONTACT INFO:

WEBSITE: www.lso.com

EMAIL:

info@lso.com

} Flexible Pickup Times } Live Customer Service } Automated Invoicing

H O T

COMPANIES Are you expanding internationally? Technology and data-driven communications allow us to live in an increasingly interconnected world. What an opportunity for companies of all sizes to thrive. Melissa Data can help you. Like many of our customers, Melissa Data has gone global. We now have offices in the U.K., Germany, Australia, and India offering critical service and support to customers.

2016

We’ve also partnered with Canada Post®, Royal Mail, and Deutsche Post to tackle global data quality and address management issues. Our global suite of solutions verify, standardize, and format international addresses, phone numbers, and email addresses to support customers expanding into new international markets.

Verify your customers’ U.S. and international addresses before you ship to improve order entry and reduce return charges as well as address correction fees. Our address verification tools can autocomplete, correct, and verify data for over 240 countries and territories, standardize addresses to a country’s local format, and add missing components: postal codes; regions; and more. This improves shipping times, reduce risks and costs, and boosts conversions as well as customer experience.

Our global verification tools are available as Cloud services, on-premises APIs, or convenient plugins for Excel®, SQL Server®, and Oracle®. In addition, our tools integrate with popular CRMs like Salesforce® and Microsoft Dynamics®, and with leading ecommerce and shipping solutions such as Magento®, Shopware®, Decimal, and OrderCup. Along with address verification, we also geocode shipping addresses in your database by adding precise lat/long coordinates for over 40 countries. Pinpoint customer locations to improve service and support logistics. Reduce errors in the critical “last mile” of the delivery chain to save time, fuel, resources, and costs while promoting customer satisfaction.

To help shippers choose the most cost-effective carrier, we offer Residential Business Delivery Indicator (RBDI) to verify address delivery type. Take parcel shipping to the highest accuracy and efficiency while reducing costs to the lowest possible rate. Slash cart abandonment with Decimal, our shipping prediction algorithm, and keep shipping costs profitable while pleasing customers.

EXECUTIVE

PROFILE Since 1985, we have committed ourselves and our global data expertise to helping our customers achieve international marketing success.

CONTACT INFO: COMPANY: Melissa Data Corp.

PHONE:

800.635.4772

WEBSITE:

www.MelissaData.com

EMAIL:

sales@melissadata.com

H O T

COMPANIES You Have to Know Where to Look for Shipping Savings There is gold in your shipping organization and Neopost USA can help you mine it.

You may have a good strategy to control your shipping costs. However, there is more value on the table that you may have overlooked. The ever-escalating, but controllable, cost of shipping is an obvious and often overlooked cost-saving opportunity. Neopost USA has shipping solutions to fit every type of environment—whether it is a warehouse environment, a centralized mailroom, or desktop shipping users around the world.

2016

We have the Solutions to Your Shipping Problems. Neopost USA can help you implement a few, easy-to-adopt functions into your operation that will control your shipping spend: } Utilize multiple carriers and services—find the mix of carriers and services that fit your needs best. } Develop an inbound shipping plan for packages to be tracked. } Develop easy-to-follow but disciplined business rules for shipping—get more control over who has the privilege to ship. } Increase the visibility and control of shippers within your organization with easy to use tools and email notifications.

Introducing Neopost USA’s shipping strategy into your organization could result in potential savings of 15 to 30 percent. Implementing an enterprise-wide shipping application brings an intrinsic set of control, compliance, cost-management and accounting benefits. That’s in addition to the smart choices you can make with carrier rate and service comparisons and the control you can have when monitoring misuse or unauthorized shipping activities.

The Peace of Mind You Deserve. Neopost USA, a leader in multi-carrier shipping software, has the solutions you can use right away to reverse costly shipping practices and realize the financial benefits of a controlled process.

The gold is there. You just have to know where to look.

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CONTACT INFO: COMPANY: Neopost USA

PHONE:

800.636.7678

WEBSITE:

www.neopostshippingsolutions.com

H O T

COMPANIES NPI is proud to introduce Xstream, our high-speed, automated flats mail and parcel sorting solution. With throughputs up to 30,000 articles per hour, a modular design that facilitates future expansion, and an ergonomic footprint, Xstream makes flat and parcel automation faster and more efficient.

Xstream processes both Incoming and Outgoing articles with ease, including bagged, polywrapped, and otherwise non-machinable flats with ease. Xstream sorts a wide variety of articles weighting up to 70 lbs having dimensions up to 24” long, 17” wide, and 12” thick.

2016

Xstream features two independent feed stations that easily accommodate plant rolling stock or may be alternately integrated with existing conveyor systems to expedite the presentation of articles into the process stream.

Xstream features state-of-the-art Barcode Reading (BCR) processes operating in a userfriendly Microsoft Windows based software environment. In addition, Xstream may be configured with a Weigh-On-Fly scale that supports Manifest Mailings.

After weighing the articles (if equipped), reading the address blocks, or decoding the barcodes, articles are quickly and accurately sorted to output destinations according to he currently loaded sort plan.

In its basic, dual-sided configuration, Xstream features up to 120 sort destinations.

Articles are transported by grooved conveyor belts until one or more carbon fiber blocks known as “shoes” move across the conveyor belt and gently push an article into the destination handling unit or takeaway conveyor. Handling units include but are not limited to tubs, sacks, gondolas, or gaylords.

Xstream is supported by time-tested software applications and utilities for system control and diagnostics, barcode processing, sort plan and report generation.

Xstream is the perfect solution for any processing environment, including but not limited to the following: • Magazine Publishers 2013 • Postal Organizations • Courier Companies

• E-Commerce Distributors • Basic Material Handling Companies, and…

• You!

CONTACT INFO: COMPANY: NPI

PHONE:

888.821.SORT

WEBSITE:

www.NPISorters.com

EMAIL:

michelle@npisorters.com

H O T

COMPANIES The OptiSorter is a multi-purpose sorter designed to sort a large range of different packages and products for the parcel industry. The OptiSorter is a tray with a pusher which moves freely along the tray. The pusher is used to push the packages or product off the tray. The system is controlled by a PLC. We can also offer Sortation Strategy Software.

Key Data: Sorted Products: garments, shoes, accessories, e-commerce, parcels, cartons, bags, and loose items.

Capacity: up to 15,000 trays per hour depending on tray size Tray size: min. 8” x 8” (200 x 200 mm) max. 24”x 32” (600 x 800 mm) Product Weight: up to 35 kg. (75 lbs.)

Destinations: chutes with laminate wood or gravity rollers, postal bag, carton, tote, boxes.

Infeed: manual and automatic Characteristics of the OptiSorter: } Sorts a wide range of items and packages … very small lightweight items to heavier large items, odd-sized packages and cylinder-shaped products } Modular design … faster installation time, easy to extend in the future } Sorter track can decline and incline … eliminate in-feed platform; multi-level solutions are possible } Configurable design … carousel, dog-leg, sort to outside and inside destinations } Configurable destinations … sort to single chute, double chute, boxes, container, roll container } Destination can be equipped with lights and displays … faster packing and destination turns } Item and package scanning … options for manual and automatic } Item and package in-feed … options for manual, automatic overhead, automatic 45degree } Low noise level … <70 decibels } Low number of drive motors…. Low energy consumption (Green technology) } Practical and efficient design … easy to maintain; low maintenance costs

2016

CONTACT INFO: COMPANY: Optimus Sorters

PHONE:

513.833.4159

WEBSITE:

www.optimussorters.com

EMAIL:

rrienecke@cinci.rr.com

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H O T

COMPANIES Think you might be paying too much for small parcel shipments?

Want to improve your rates without spending an outrageous amount?

ParcelLogix can help. ParcelLogix is the leading provider of affordable UPS®, FedEx®, & DHL Express® small parcel benchmarking services. We identify the pricing that you deserve and help make those rates, YOUR rates.

2016

WHAT WE DO: We help you reduce your shipping costs by providing highly affordable small parcel price benchmarking. We identify what you should be paying for every single shipment versus what you are paying. We then help position you to negotiate with your carrier(s) to get the pricing that you deserve, not the pricing the carriers say you deserve.

OUR PRICING: Simply put, our pricing is the best in the industry. There are no lengthy or onerous contracts and you won’t pay a percentage of savings for a period of years.

Pricing starts as low as $4,995. In short, we offer industry-leading results at a fraction of the price of other options.

OUR EXPERIENCE: Our team comes from the major global carriers. We review and price hundreds of small parcel pricing agreements every year. We know what the market will bear and can leverage this knowledge to reduce your current small parcel expenses.

OUR TECHNOLOGY: Our proprietary benchmarking software, derived from an ever-growing database of thousands of shipment profiles, measures your data against the carriers’ key cost-drivers to determine appropriate pricing for every single shipment, including accessorial charges, minimum charges and dimensional weight.

WHAT WE OFFER: More money in your pocket by delivering a best-in-class benchmarking product at a reasonable cost. Our products are designed with our customers’ needs and budgets in mind. Visit us at ParcelLogix.com or call us at 800.471.2310 to determine the right package for you.

If you are looking to save thousands on your company's small parcel shipping expenses, look no further than ParcelLogix. You simply will not find a more capable and more affordable option in the marketplace. Mention this ad for a 20% discount and a free initial analysis - good towards any service. We look forward to exceeding your expectations.

CONTACT INFO: COMPANY: ParcelLogix

PHONE:

800.471.2310

WEBSITE: ParcelLogix.com

H O T

COMPANIES PITT OHIO is a service organization dedicated to providing high-value transportation and supply chain solutions to our customers. PITT OHIO is “Customer Driven, People Driven and Quality Driven.” As an organization we remain committed to innovating in every area of our company with our SUPPLY CHAIN, GROUND, LTL and TRUCKLOAD services. We strive to take it to the next level by providing diverse transportation solutions that help optimize your supply chain.

2016

At PITT OHIO we understand that when it comes to small package shipping, one size does not fit all. We provide a more flexible alternative to your small package shipping and we are able to deliver a GROUND service that is customizable, reliable and more cost effective.

Our GROUND service is able to extend your range of service based on volume to offer a competitive GROUND solution. We also specialize in handling non-conveyable products that you may have claims issues with today such as paint, liquids or rakes.

Our on-time performance for our GROUND service exceeds 97% and we have few damages with a shipment integrity that is better than the competition with 1 in 4000 packages experiencing a claim. For a seamless transition, complete integration services are ossible with our ShipStation shipping software and our dedicated customer service is available to provide you with quick resolution with any issue.

PITT OHIO’s customer-centric mindset has allowed us to give more customers what they want and need to be more competitive in the marketplace. This customer-centric mindset is evident with our participation in The Reliance Network (TRNET) an alliance consisting of ourselves and six other regional LTL carriers who provide service throughout North America.

PITT OHIO continually strives to provide the most reliable service and is committed to our customers, our employees, and our community; We’re Always There For You!

CONTACT INFO: COMPANY: PITT OHIO

PHONE:

800.366.7488

WEBSITE:

www.pittohio.com

EMAIL:

GroundShip@pittohio.com

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H O T

COMPANIES Precision Software is the only solution provider that offers global shipment execution, trade management, shipment visibility & exception management, and trade compliance capabilities on ONE integrated platform. With our solution, you can automate all the efforts involved in Shipment Execution, Trade Compliance and Global Trade. Our shipment visibility and exception management solution, Package Exception Management (PEM), can provide shipment status/visibility for all carriers from a single portal, so users can proactively manage shipment issues with their customers.

2016

We can integrate with your ERP, WMS, TMS, OMS, etc. systems, where all your packing/ shipping stations can ship to all carriers in an automated fashion (no rekeying of shipment information into different systems). Precision Software has certifications with Oracle EBS and OTM, SAP, JDA, Manhattan, HighJump and numerous others.

We have over 500 certified global carrier (UPS, USPS, FedEx, DHL, TNT, Purolator, OnTrac, Royal Mail, CanPar, La Poste, DB Schenker, Yamato Logistics and more) integrations, handle all modes of transportation and are the worldwide leader in shipment execution. In fact, we were the first company to achieve worldwide FedEx certification. We also save companies time and effort through our automated customs integrations. Key to our solution is the ability to screen orders for trade compliance, perform carrier compliant shipping activities, track shipments, and automate both the export and domestic documentation flow. Precision Software provides these industry leading solutions to the banking/finance, insurance, retail, high technology, life science, consumer product, logistics provider, industrial, and automotive sectors. } Established in 1984 in Dublin, Ireland } Acquired by QAD Inc. in 2006 } Headquarters: } U.S. â&#x20AC;&#x201C; Chicago } EMEA R&D â&#x20AC;&#x201C; Dublin, Ireland } Customers: 6000 + Sites } Worldwide: Over 60 Countries } Global Support: 21 Locations } Shipments: 3 Billion plus managed annually } Stock: NASDAQ IPO 1997 QADA } QADB ($277.9 M in FY 16)

CONTACT INFO: COMPANY: Precision Software, a division of QAD, Inc.

PHONE:

805.566.6780

WEBSITE:

www.precisionsoftware.com

EMAIL:

rdp@qad.com

Freight Audit is obsolete.

Today there’s a smarter way.

H O T

COMPANIES RateLinx shipping and logistics management software brings an approach to freight management like you’ve never seen before. Our software and services suite creates a strategic platform to let you find freight strategies through data, test the strategies through modeling, execute the strategies with ShipLinx TMS, and measure and monitor the successful results of the strategies with the Dashboard.

2016

The foundation of RateLinx is built on data collection. Only RateLinx connects order data, shipment data and invoice data with our dynamic Intelligent Invoice ManagementSM payment system. With complete visibility to transactions within 24 hours, RateLinx provides actionable Integrated Shipping IntelligenceSM — saving millions of dollars for our customers as they reduce shipping costs, increase efficiency and work smarter with carriers.

CONTACT INFO: COMPANY: RateLinx

PHONE:

262.565.6150

WEBSITE:

www.ratelinx.com

EMAIL:

sales@ratelinx.com

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H O T

COMPANIES Rice Lake Weighing Systems is a global leader in the manufacture and distribution of weight-related products and process-control equipment, including solutions for the logistics industry. Within this ISO 9001 registered company, progressive new technologies merge with the wisdom of 70 years industry experience to create the future of weighing through cutting-edge research and design. With headquarters in Rice Lake, Wisconsin and sales and service throughout the world, Rice Lake delivers high-quality products, exceptional customer service and custom solutions for virtually any application.

2016

From small businesses and mail counters to large operations and warehouses, parcel and package shipment is a daily occurrence. Many of these facilities routinely use large shipping carriers, such as FedEx®, UPS® and DHL®. In order to more accurately reflect billable weight, these large carriers are now determining shipment pricing based on either dimensional weight or actual weight—whichever is greater. Dimensional weight, often referred to as dim weight, reflects the package’s density—the amount of space the package utilizes in relation to its weight. To determine dim weight, a package’s length, width and height are multiplied, resulting in its cubic size, and then divided by 166 for domestic or 139 for international shipments.

To better maximize carrier capacity and efficiency, dim weight policies prompt shippers to more efficiently package their items with less wasted space and to maintain a higher regard for the importance of package density. Companies who ship packages without properly calculating dim weight will pay increased shipping costs from miscalculated dimensions or due to freight compliance issues. iDimension is Rice Lake’s comprehensive dimensional solution. This 3D imaging system is ideal for packages ranging from tabletop flats and polybags to boxes, tubes and LTL multi-piece pallets. Using a high-resolution camera and workplace-safe sensing technology, iDimension converts packages and irregular shapes into accurate, cubed dimensions. Unlike other dimensioning systems on the market, iDimension systems are designed for busy warehouses and shipping departments by requiring virtually no timeconsuming special parcel handling or alignment. ™

To learn more about Rice Lake’s iDimension Series of dimensional solutions, please visit www.ricelake.com/iDimension.

CONTACT INFO: COMPANY:

Rice Lake Weighing Systems

PHONE:

800.472.6703

WEBSITE:

www.ricelake.com

EMAIL:

prodinfo@ricelake.com

Shipping Intelligence

H O T

COMPANIES ShipHawk is democratizing retail shipping by giving retailers access to the best delivery price points and powerful shipping intelligence software that: √ √ √ √ √ √

Protects and improves margins Optimizes delivery for all product types Decreases costs Improves Net Promoter Scores Optimizes delivery for all product types Provides an on-brand delivery experience

2016

Free shipping has become table stake for e-retailers, and the diversity of goods that consumers seek to purchase online continues to grow. Traditional parcel carriers are adding a variety of surcharges and pricing options that often make it challenging to determine whether you've selected the right shipping experience or not. Meanwhile, the non-parcel market remains highly fragmented.

ShipHawk equips retailers with the ability to overcome these challenges in the following ways: } Real-time rate comparisons at point of sale across national and regional carriers, increases cart conversions and saves the retailer ~20% on shipping rates. } Full back-end automation significantly reduces operational costs, errors, and damages. } "FedEx style" tracking for all shipment types provides visibility and fosters buyer trust. } Advanced shipping analytics provide a complete picture and empower retailers to optimize their marketing.

CONTACT INFO: COMPANY: ShipHawk

PHONE:

805.335.2432

WEBSITE:

www.ShipHawk.com

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H O T

COMPANIES Shipware LLC offers transportation spend management solutions to increase your profitability by delivering savings and value beyond your reach. Whether you ship with FedEx, UPS, USPS or regional carriers, our services are guaranteed to reduce your shipping costs by 5-30%.

Contract Optimization Need to master your next parcel contract negotiation? Shipware has been negotiating parcel contracts – on both sides of the negotiating table – since 1991. Using your shipping database, we provide a complimentary and obligation-free savings assessment and benchmark of current contract/rates. Once engaged, we guide your team in real time through the entire contract negotiation process. Our compensation is based on actual, implemented savings, guaranteeing results or we’re not paid.

2016

Modal Optimization Shipware will also analyze and optimize your delivery network to save money and improve delivery transit using regional and national carriers as well as US Postal Service and parcel consolidators.

Parcel Invoice Audit Our proprietary audit software analyzes weekly parcel invoices for billing errors and service failures. With 50+ audit points, Shipware’s audit is widely regarded as the leading platform to reduce shipper’s weekly carrier invoice costs as well as provide key insights. Shipware categorically recovers more dollars than any other audit firm, which is confirmed time and time again in head to head comparisons. All credits are directly applied to your carrier account.

Spend Management Visibility Shipware provides powerful data mining software and state-of-the-art online reporting tools empowering our clients to make intelligent cost-saving transportation decisions.

Results Since 1991, Shipware has achieved savings for its clients 5-30%. We know of no other firm in the world that can match our track record of savings, professionalism, and unmatched value.

CONTACT INFO: COMPANY: Shipware

PHONE:

858.879.2020 x111

WEBSITE:

www.shipware.com

EMAIL:

info@shipware.com

H O T

COMPANIES Among freight audit and payment companies, SSI is unique. We listen. We innovate. We help SMALL PARCEL SHIPPERS implement solutions that reduce transportation costs.

Trust is established through transparency. We encourage shippers to consider the following: Do you know if CARRIERS ARE PAID? Is it timely payment? Do you have visibility to carrier funding?

2016

At SSI, our number one goal is your trust. Our tools allow shippers to independently verify carrier payment. Our solution helps you know exactly when, where and how much was paid. We guarantee weâ&#x20AC;&#x2122;ll be the most transparent partner youâ&#x20AC;&#x2122;ve ever had. To learn more watch our video at: http://ssui.com/freight-payment Are custom freight contracts audited accurately? Do you employ an AUDIT POLICY for each carrier?

We understand that no single-contract is the same. We develop unique pre-audit policies and rules for each client to ensure contract accuracy. Not only do we check for duplicate bills, rate errors, billing discrepancies, and, of course, service failures, but we work with our clients to review the addendums, small-print references, and custom services negotiated with the carrier. The result is a more comprehensive audit and greater savings. For more information about our custom freight bill audits, watch our video at: http://ssui.com/freight-bill-auditing How good are your parcel shipping reports? Can you dig deep into data? Can you SHIP SMARTER? SSI will help your shipping department reduce costs and ship smarter by providing tools that are far beyond the typical offering. Our business intelligence reports deliver graphs and charts that help illustrate carrier activity month-to-month, quarter-to-quarter, and year-to-year. We help you uncover and pinpoint shipments and carriers that adversely affect cost. Our freight benchmarking dashboards illustrate high-level trends and allow analysts to drill deep into shipping metrics. Check out our business intelligence and freight benchmarking video at: http://ssui.com/business-intelligence SSI freight payment and audit services are different by design. Check out our website today to WATCH our VIDEOS and DOWNLOAD our FREE WHITE PAPERS to learn more.

CONTACT INFO: COMPANY:

Software Solutions Unlimited, Inc

PHONE:

971.249.5400

WEBSITE: www.ssui.com

EMAIL:

sales@ssui.com

With transportation costs soaring due to rate increases and rising accessorial charges, even the most sophisticated supply chain operations frequently overpay for shipping.

Achieving a competitive advantage in a dynamic global marketplace requires efficient supply chain operations.

Spend Management Experts can help you optimize your spend across the supply chain, reducing transportation costs by 20 percent or more. Our finance backgrounds and extensive experience analyzing shipping costs relative to carrier profitability enables us to develop effective supply chain optimization strategies.

Our approach is non-invasive to daily supply chain operations. We leverage cutting-edge proprietary models and unparalleled market intelligence to identify savings opportunities.

We then build carrier negotiation strategies based on that data and meaningful business cases.Our value proposition is based on a pay-for-performance fee model. SME is only paid on real and measurable savings.

We offer three categories of service to help you effectively manage your transportation spend across all modes: Transportation Optimization: Carrier Sourcing, Contract Optimization, Market Intelligence.

Strategic Supply Chain Planning: Distribution Network Analysis, Outsourcing Impact Analysis, Spend Forecasting & Budgeting.

Audit Technology: Audit & Recovery, Dynamic Reporting, Freight Payment.

H O T

COMPANIES

2016

The benefits are undeniable; reduced transportation costs, increased operational efficiencies, dynamic reporting and data normalization, greater budgeting and forecasting accuracy and optimized supply chain planning.

EXECUTIVE STATEMENT

â&#x20AC;&#x153;At Spend Management Experts, we strive to be the leading global provider of transportation spend management services, all while providing strategic guidance and market intelligence that helps companies optimize their transportation spend across the supply chain. Our core services enable us to address the shipping needs of virtually every type of company in any sector. Our team of best-in-class analysts use proprietary cost modeling technology to evaluate client profiles and help them maximize their contracts, resulting in real savings that can be strategically reinvested in their company.

SME will continue to serve with transparency, act with integrity, value client relationships and engage with our community, so we can continue to provide the insights and opportunities that our clients are seeking from us.â&#x20AC;?

- John Haber, Founder & CEO

CONTACT INFO: COMPANY:

Spend Management Experts

PHONE:

404.902.5390

WEBSITE:

www.spendmgmt.com

EMAIL:

solutions@spendmgmt.com

H O T

COMPANIES WHO ARE WE? Tension Packaging & Automation designs and builds modular and scalable automated packaging, weighing, manifesting and sorting systems for direct-to-the-consumer order fulfillment distribution centers, AND mail order and central fill pharmacies. If you are hand picking and packing items into corrugated boxes, polybags or padded envelopes, then one of Tension’s automated packaging and sorting solutions could be a very cost effective option for you. Using both proprietary equipment and field-proven automation provided by our key partners Tension provides a one-stop solution for your automated packaging and sorting needs.

2016

EQUIPMENT Automated Packaging Systems: From small Sharp SX Tabletop bagging systems, to our unique HPC Horizontal Polybagging system and now our new BoxSizer that cuts down the size of your carton to save big money on void fill and DIM upcharges, Tension can handle almost any packaging need.

Sorters: The G4 is a pop-up roller based system that handles cartons up to 50 lbs. The Z1 is a raised belt based system that handles small light weight polybags up to 10 lbs.

These sort modules can be integrated into and combined with existing equipment used for sorting, weighing, scanning and labeling.

ABOUT OUR COMPANY Tension Packaging & Automation is a division of Tension Corporation. Headquartered in Kansas City, MO., we have domestic design, manufacturing and sales operations as well as a global footprint that extends throughout Asia and Europe. The Company has leveraged its long-time expertise in machinery, paper, and systems coordination into Tension Packaging & Automation by becoming a leading provider of automated order fulfillment packaging and sorting solutions.

WHY CHOOSE US Tension Packaging brings a totally integrated automated packaging and sorting solution to the pre-pack and direct-to-the-consumer order fulfillment market. Given that we are responsible for all facets of the solution…including concept design, machine, software, consumables, training and support…we remain committed throughout the installation and operation process to make sure your automated pre-pack and order fulfillment solution project goes smoothly and meets all your expectations. We understand the demand to control costs, increase productivity and grow your organization.

CONTACT INFO: COMPANY:

Tension Packaging & Automation

PHONE:

855.763.7275 x 4103

WEBSITE:

www.tensionautomation.com

EMAIL:

info@tension.com

H O T

COMPANIES U.S Cargo a Regional Small Package Transportation Company Specializing In Providing Flexible and Customized Solutions.

U.S Cargo is a specialized regional courier and package delivery company providing consistent, cost-effective, and reliable ground, premium, and customized services. We offer diversified ground services to our customers and provide them with high-value, lowcost solutions. At U.S. Cargo, we identify, design, and deliver innovative, flexible, and service-sensitive transportation solutions encompassing dedicated courier, final mile, pool distribution, parcel, and lightweight LTL. Our solutions create sustainable, longterm value for our customers, business partners, and employees.

2016

U.S. Cargo differentiates itself by offering a personalized approach and commitment to meeting and exceeding our customerâ&#x20AC;&#x2122;s transportation and logistical needs, whether their requirements are standard or unique. If you need your freight delivered earlier than a standard delivery time, our Premium Delivery Services are available upon request.

We specialize in being flexible when it comes to your shipping of parcels and small packages. The ability to offer customized solutions distinguishes our company from the others. We are able to handle inventory pick/pack and distribution, management of dedicated transportation systems, and white glove delivery services including assembly and installation. And these are just a few of the solutions U.S. Cargo can provide! We work with you on the solution that best fits your supply chain.

Since 1972, we have provided superior on-time service and optimal package handling. We believe in having a hands-on approach to package sorting, and we offer better shipment integrity than our competition. Only 1 in 6,000 packages in our system experience a claim.

CONTACT INFO: COMPANY: U.S. Cargo

PHONE:

614.552.2746

U.S. Cargoâ&#x20AC;&#x2122;s comprehensive website puts visibility at your fingertips, providing you with full tracking and tracing capability in real time as well as enabling you to conveniently print your shipping labels.

WEBSITE:

At U.S. Cargo, customers are not just a number. We have a dedicated Customer Service team at both the corporate and the local service station levels in order to ensure that you receive prompt and professional response and follow-up. We pride ourselves in being a strong regional carrier who delivers consistent, cost-effective, and reliable service and solutions to accommodate our customers.

inquiries@us-cargo.com

www.us-cargo.com

EMAIL:

H O T

COMPANIES VeriShip Parcel Accountability provides you with 3D expertise: Data, Diagnosis, and Design. Our 3D approach not only recovers the money you're owed but also helps you streamline processes and optimize parcel spend to save even more.

Data Objective decisions require objective data, and with VeriShip, that’s where it all starts.

We connect our trusted and proven cloud-based software to your parcel accounts in minutes, importing your electronic invoices from your carrier and extracting critical data to help identify savings opportunities. With this data in hand, you’re able to make objective decisions about your parcel shipping costs—and we’re able to request refunds to recoup those costs.

2016

Diagnosis Data is good, but ongoing analysis is better. Likewise, while data can present you with a snapshot view of your savings opportunities and request refunds accordingly, Diagnosis analyzes new information on a continuous (rather than one-shot) basis to uncover cost trends that will improve your overall parcel health. Through Diagnosis, we make use of critical parcel data gained from more than 3,300 clients to change overall outcomes that affect your bottom line.

Powered by our VeriShip Intelligence Platform™ (VIP), Diagnosis offers access to billions of data touch points that offer greater insights into parcel savings opportunities and common carrier mistakes. Our comprehensive analytics platform gives you access to real time analytics like cost per pound, average zone, and more--all without intrusion to your shipping processes and carrier interactions.

Design It’s one thing to recover parcel dollars lost. It’s another thing entirely to uncover new opportunities to save money. The combined power of our proprietary software and 10 years of benchmarking data from more than 3,300 clients helps us to design new cost-savings opportunities for your parcel spend. Our data scientists analyze your parcel spend with objective, real-time benchmarking, so you get actionable intelligence customized to your unique parcel environment.

Design is a cost-saving parcel analytical service built to ensure that all processes related to shipping are managed and executed as efficiently as possible, saving you money. On average, our clients save 10% to 30% of their annual parcel spend through Design.

CONTACT INFO: COMPANY: VeriShip

PHONE:

800.903.3073

WEBSITE: veriship.com

EMAIL:

info@veriship.com

MOOOVING YOU FORWARD...

The parcel shipping, warehousing, distribution and logistics industry is moving forward at “same-day”

GAYLORD TEXAN

speed—in large part due to the role technology is playing in increasing customer demand and expectations in both the B2B and B2C markets. Our industry is moving forward, and companies who fail to recognize the shift taking place within the supply chain will get trampled.

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INSIDE LOOKING OUT: A PARCEL PRO’S LOOK AT THE LANDSCAPE

By Brian H. Sternberg

T

hirty-seven years! Many years, flights, hotels, meetings, countries, contacts, colleagues, and, more importantly, many, many friends. I saw so much regarding technology, instant information, international trade, changing and emerging markets, and a new group of people (both vendors and their customers) embrace these changes and try to navigate this playing field. One thing that has never changed in the last 37 years and will remain the same for years to come is the goal of getting a parcel from point “A” to point “B,” safely, economically, and on time.

I had the privilege to be a part of this (chaotic) parcel market, employed by a major carrier for 37 years. I began as a dock worker at the age of 19, drove a package car, and ultimately spent many

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JULY-AUGUST 2016 | PARCELindustry.com

more years wearing a management hat with many dollars at stake. I have experienced, strategized, invented, and helped to implement these seemingly misunderstood procedures, contracts, services, and rate enhancements that we are faced with today.

My parcel background has been in District, Region, and Corporate/National Account Pricing ( aka “Revenue Management”), sales strategy/training, finance/ accounting, supply chain analytics, and for fun, a bit of FTL/LTL forwarding sprinkled in. This leads me to believe the feelings of chaos in the parcel industry will continue for years to come. Whether you are the shipper, consignee, third party, or even grandma shipping something during the holidays to the grandkids, you have a stake in the parcel game. And it is

just that — a game. It’s a game you can win; you just have to know how to play it. Similarly, the carriers play this game with one another, seeing who will blink first, implement first, gain market share, and ultimately drive revenue. The key for them is to do it without you noticing!

Let’s be clear, however, that these parcel carriers with technology and vision, and especially in the wake of the Internet explosion, drove tremendous growth of commerce and wealth in the United States, made many businesses possible here and around the world, and have provided for a better life for all of us and what we come to expect in our daily lives.

I think we can all agree for most businesses to grow, or just compete within their industry, they typically need to ship or receive a product. The average business

day sees over 35 million new packages moving through the network. No slight to the ketchup and mustard guys, or the red white and blue guys, but brown and purple make the rules, own the board, and usually control outcomes. Customers (the players) need to understand the dynamics of this game to lessen the cost of their parcel businesses while improving their supply chain. Understanding how your packages are effected by the carriers’ annual or semiannual changes (rate changes, DIMs, and fuel, etc.) is key to accomplishing a win in the game. No problem, huh? Frequently, the carrier account executives scratch their heads and groan as well when these new changes are applied

by Atlanta, or Memphis, so you are in good company. The only ones celebrating are the stockholders.

I have been challenged during my 37 years of service to my company and now as a consultant to use my skill set to advise and direct companies on the best strategies to achieve lower parcel cost and process improvements for my clients. In this new role I have confirmed that many parcel customers do not have a firm grasp of this, and many tend to struggle keeping up with the industry.

Recently I have met with customers and interested parties that are categorized as Private Equity Groups (PEGs), 3PLs, national accounts, and smaller accounts that use the same carriers (you know the colors!). The common question regardless of size or parcel spend is, “How do we take the mystery out of the parcel industry and lower our cost?” Most attempt to answer this question by asking, “Should we keep it in-house? Stay with what got us here? Throw more people at it? Use third party? Move it away from the traffic manager? Hire a traffic manager?

Make the current traffic manager a logistics manager? Off shore it?” All are good options (but don’t off shore it!).

There is no magic bullet — no one size fits all. Every supply chain is unique, and therefore, your solution will be unique.

Each organization must stop, take a breath, and really look at their parcel supply chain and break it down and benchmark. Assess your parcel footprint and how important you are to your current carrier(s). Your revenue and volume are two key components carriers use to determine importance and discounts, but they are not the only factors. There are many other important contributors to a parcel profile that define each customer to the carrier, but it all comes down to revenue per piece for the carriers. Some other key elements are pick up and delivery density, which, in a nutshell, is the customer’s contribution to the carrier network as the carriers drive cost down through driver stops per hour, and at each stop, the amount of packages on or off the car. Average weight to cube (DIM) helps establish an average parcel identity, and how far away the customer’s average package is from the upper left hand corner of the rate chart. If the carriers played within one to five pounds, zone 2-3 only, they would have a difficult time

pulling down about 100 billion per year in parcel alone. Additionally the parcel mix (air vs ground, commercial vs residential), existing agreements, and flexibilities beyond just rates all contribute. Other considerations are accessorial flexibilities, minimums, age of existing agreements, mode of pick-up, i.e. package car vs tractor trailer, payment terms. All are part of the equation to help further understanding of the parcel profile, footprint, and your importance to the carriers.

Doing business today requires a “Parcel Professional,” whether in-house using the existing team with a more robust approach to understanding parcel, or a consultant or third party. Companies choosing to improve their internal employee acumen can find help through further education at local community colleges or universities, as most now offer logistics classes and degrees. Seminars, associations, networking with like companies, and trade magazines are also effective educational tools and are not that costly. Since the recession, third party logistics firms (3PLs) have grown quickly as company traffic staffs have decreased, but there could be cost associated, whether it be hard dollars or soft, and some loss of control. They can be very effective; however, to vet and choose the right 3PL can further confuse the process. Companies may also consider a middle ground alternative by bringing on board a “subject matter expert” or consultant with parcel experience that can help navigate and make some suggestions and be available when needed via an “a la carte” approach. Companies can work them into the process helping to educate the existing staff along the way. Regardless of choices, company investment in this area needs to be considered to understand their own unique parcel profile and footprint as this game will only become less understood, and more costly in the future. ¾

BRIAN H. STERNBERG has over 37 years of experience in the parcel industry and is available to companies or individuals to discuss this topic and assist in understanding and strategizing their parcel, LTL/ FTL, or forwarding supply chains. For further information, email Info@InframeInc.net.

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By Doug Caldwell

FACING THE INTERNATIONAL CHALLENGE HEAD-ON

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lobally, the shift in trade models has happened rapidly in westernized economies. In China, these changes have occurred a bit more slowly. However, Chinese policies regarding cross-border e-commerce have picked up momentum in the last two years with a heavy concentration on direct B2C sales. Figure 1 visualizes this trade paradigm shift and its impact on the relationship between the product supplier (producer) and consumer.

The traditional trade model was heavily dependent on small and medium foreign trade companies, or middlemen. The new cross-border paradigm, however, eliminates these trade companies and provides the merchant or producer of the goods with a more direct relationship to their international e-commerce consumers.

In China, American consumers’ appetite for international products is being driven by cheaper prices and unique product offerings that are not available domestically.

And the steady shift in trade models increases the opportunities for Chinese mer-

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chants and product manufacturers to sell their products directly to the American consumer. However, these opportunities come with a number of challenges that the merchant or product supplier should be aware of prior to initiating a cross-border e-commerce program.

CHALLENGES AND SOLUTIONS With the globalization of online retail sites like Alibaba, DHGate, and LightintheBox, China is leading the charge with cross-border e-commerce offerings that are attracting large numbers of US consumers. Global cross-border e-commerce is estimated to grow to almost $1 trillion (USD) by 2020, a compound annual growth rate of 27%. Yet for Americans making cross-border purchases, significant issues continue to be focused on the logistics of product delivery: } Shipping costs are too expensive. } Transit times for delivery are too long. } Bottlenecks in customs delay receipt or add unexpected costs. } Tracking products from origination to

Tips to overcoming the obstacles that are inherent in cross-border e-commerce trade destination may not be available. } Return processes are cumbersome or too costly.

BALANCING TRANSIT TIMES AND COSTS Traditional delivery models struggle to meet the needs of consumers’ in today’s global e-commerce environment. Express delivery tends to be high-priced and can often drive the overall cost of the product to unacceptable levels. Less expensive, no-frills mail options tend to be slow and inconsistent with limited or no tracking.

Localized fulfillment can bridge some of the gaps between cost and transit times.

However, maintaining inventory is expensive and updating the product mix to the most current models is slow.

Consumers continue to put pressure on suppliers to reduce or eliminate shipping charges on their product purchases.

Although consumers’ expectations for cross-border delivery are a bit more flexible, there remains a direct connection between unexpected shipping costs and shopping cart abandonment. And similar to domes-

tic shoppers, cross-border purchasers are likely to spend more on products when their shipping cost expectations are met.

Accounting for these consumers’ attitudes, it becomes even more important for e-tailers exploring international markets to find a balance between the traditional delivery models. To meet this balance, a number of hybrid delivery companies have surfaced in the United States in the past decade. These companies have developed unique delivery models that often provide middle-mile air, customs clearance, and final-mile delivery by USPS. By shifting the traditional paradigms, these models deliver products directly to consumers in far fewer days than most mail options, while reducing express delivery charges by significant amounts.

NAVIGATING THE B2C CUSTOMS PROCESSES When exploring a direct-to-consumer model, making sure products will pass through customs quickly is key to ensuring transit time commitments with your customers.

Traditional trade models placed the customs responsibilities on middlemen that provided a necessary service, but added little value to the process.

With today’s evolving models, navigating these customs hurdles becomes the responsibility of the e-tailer and/or their

delivery partner. A strong delivery partner works collaboratively with the supplier to address specific issues that are common to the process and issues that may be isolated to the country of origin.

For example, China has traditionally generated more concern with the importation of products that are counterfeit, knock-offs, or forgeries. If these types of products are discovered, not only does it hold up that specific product delivery, but it can hold up delivery of all products within the shipment.

These are real concerns for the delivery partner as their models are built around consistent shipping volumes and final delivery to the consumer. Early collaboration amongst partners is crucial to developing effective processes that reduce the risk of products getting held up in customs. Ultimately, eliminating customs issues and establishing a consistent delivery expectation helps develop brand trust — a good thing for both the delivery partner and product supplier.

PARCEL TRACKING AND RETURNS PROCESSING Nearly 20% of American consumers making cross-border purchases list the inability to track parcels as an issue that prevents them from making more cross-border purchases. In today’s highly

connected world, consumer confidence is directly linked to the visibility of their product from purchase to delivery. By using delivery partners that provide endto-end product tracking for both the consumer and supplier, you can increase consumer confidence and extend your brand with repeat customers.

American cross-border consumers also list difficulties in returning purchased products as a barrier for making more purchases. Suppliers’ return merchandising systems often require damaged or incorrect products to be physically returned prior to processing a refund. Yet because of the high cost of getting these goods back to the supplier, returned merchandise is usually shipped via slower, more economical methods. Consumers, on the other hand, who receive wrong or damaged products are unwilling to wait under the current models that require “return receipt” prior to issuing a refund or replacement product.

To bridge this gap, developing a localized return process that decreases both cost and time for return receipt is vital in alleviating consumer concerns. And, communicating this policy to potential consumers in clear, concise language can make the difference between a sale and no sale.

CONCLUSIONS The American appetite for international products, from China and other countries, continues to grow and drive significant volumes of cross-border purchases. This appetite provides significant opportunities for international suppliers and e-tailers who can effectively sell and deliver products that these American consumers desire.

As traditional international trade paradigms continue to squeeze out middlemen, more and more responsibilities for navigating these international B2C delivery obstacles fall on the product supplier.

By investing the time in understanding these obstacles and identifying the right delivery partner, international suppliers can increase their opportunities by making a strong first impression and driving repeat consumer purchases. ¾

DOUG CALDWELL is Vice President of International Development, International Bridge, Inc. He can be reached at doug.caldwell@myib.com.

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COMPETING IN THE ONLINE RETAIL WORLD TODAY E-commerce has changed the retail landscape.

Here’s how you can stay competitive.

T

here’s a unique consumer profile for every organization competing in the online retail world. We can broadly identify unique trends that differ from one industry to the next. There are some markets in which the customer base is more time-sensitive than they are cost-sensitive.

In other words, when an online customer is checking out, if the option is available, some might choose a shorter delivery time in exchange for a higher price. Other industries might have more cost-sensitive consumers. These customers will prefer free shipping (if available) and be happy to wait a week for their orders to arrive. Regardless of particular consumer

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preferences, the challenge rests on the company to: 1. Know their customers and 2. Strike the right balance between cost and time in transit. “Balance” is the operative word in this formula. It is never binary; while the quickest delivery may be most important to the customer, this does not mean that cost is disregarded entirely.

Identifying this balance will improve shopping cart conversions, enhance customer lifetime value, and ultimately provide a competitive edge in the marketplace. Furthermore, knowing how to execute time in transit improvement as well as the ability to reduce overall shipping costs can mean the difference between surviving and thriving in the online retail world.

There are numerous ways to improve

time in transit. However, omnichannel fulfillment delivers the strongest competitive edge. While omnichannel fulfillment has its challenges (namely inventory management), it is here to stay and will continue to offer a competitive advantage as it addresses both sides of the time vs. cost equation. Large retailers that have multiple distribution centers and dozens (if not hundreds) of stores across the nation can drastically reduce their delivery time by leveraging their national footprint. Ensuring each location has inventory to fulfill online orders, although challenging, means shortening the distance between product location and the consumer’s delivery location. The subsequent hurdle is employing the right distributed order management technology to dynamically pair the delivery ZIP Code with the closest location that has inventory to fulfill the order. If executed properly, this strategy offers a quicker de-

By Trevor Outman

Editor’s Note: Trevor also touched on this topic in our March/April issue. You can read that here.

livery at less the cost because the parcel carriers price each parcel based on the distance from pickup to delivery destination, categorized as zones by the carriers.

A Zone 2 (one to 150 miles) shipment costs much less than a shipment to Zone 8 (1,801+ miles). Theoretically, a company employing omnichannel fulfillment can eliminate shipments to the more expensive outer zones while also reducing time in transit. There are multiple considerations and complexities to omnichannel fulfillment, making successful entry challenging. However, the pursuit of improving omnichannel fulfillment and the competitive edge it provides will continue to deliver meaningful value in the highly competitive .com world.

Whether a company fulfills orders from a single warehouse or from hundreds of locations, it will always need competitive shipping costs. For many online retailers, the

ability to procure lower shipping costs allows them to pass the improved rates on to their shopping cart platform, consequently enabling them to win new customers. For other companies offering free shipping, lower shipping costs means improved margins, which enhances competitive sustainability. The most immediate way to reduce shipping costs is to renegotiate pricing with the parcel carriers. However, navigating the parcel negotiation waters can be a challenging. Parcel carriers are making it more difficult than ever to negotiate competitive shipping rates. Carriers are implementing new contract complexities, new and meaningful nuances that often get overlooked.

Additionally, while the parcel carriers raise their rates every year, most online retailers typically do not. Consequently, these annual increases directly cut into the profit margins of the online retailers. The carriers have evolved over the years to ensure they are delivering value to their shareholders by offering shippers specific pricing based on the unique package characteristics. These specific shipping characteristics or shipping profiles will affect the carrier’s margins and, in turn, impact proposed pricing.

These critical components include service usage mix, weight distribution, zonal usage, pickup and delivery density, package weight and dimensions, and more. Therefore, every shipper has different criteria and a unique set of priorities when pursuing contract renegotiations. There isn’t enough space in this publication to detail every consideration when procuring bestin-class parcel pricing. For brevity’s sake, I’ll list the common contract negotiation pitfalls that online retailers should avoid when procuring competitive parcel pricing from their carrier: 1. Piecemeal. Don’t negotiate each concession one at a time. Consolidate requests and form a business case justifying the requests.

2. Discount tunnel vision. Don’t focus solely on improving discounts per service category. There are other components, like the minimum charge, that can significantly mitigate a competitive rate down to a far inferior discount.

3. Wrong path. It’s not uncommon to see competitive concessions within a contract only to realize upon further anal-

ysis that there is little to no financial impact from said concession.

4. Uninformed. Educate yourself on the carrier’s dimensional billing policies, general rate increases, accessorial charges, minimum charges, etc. This is often an expensive oversight for many online retailers.

5. Pricing cliff. Most contracts have volume-based discounts with upper and lower thresholds. Overlooking the threshold bandwidth could inadvertently allow pricing to fall in to a step-down tier.

The lower tiered pricing is typically second-rate and far inferior compared to the targeted volume based discount tier.

6. Data. Analyze it and understand your unique shipping profile, which will uncover areas of focus for maximum financial impact.

7. Loyalty. Sadly, long term loyalty is not always rewarded. A relationship between an online retailer and their parcel carrier is critically important. The relationship may have been initiated with competitive pricing. However, sustaining competitive pricing is difficult when the incumbent carrier doesn’t feel threatened by its competitors. Remaining with the same carrier for years on end can lull online retailers in to a less than competitive pricing program.

In conclusion, there are many other strategies to help reduce transit time and dozens of other negotiation pitfalls that a company should avoid when procuring competitive shipping rates. Of course, there isn’t a onesize fits all strategy. However, the strategies discussed should contribute to the development of a competitive advantage in the online retail marketplace. ¾

TREVOR OUTMAN, MBA, is Co-Founder & Principal Partner of Shipware, an innovative audit and consulting firm that provides expertise focused on helping companies reduce their shipping costs.

Trevor founded Shipware over a decade ago, leveraging years of experience analyzing volumes of parcel data and carrier contracts. Trevor’s knowledge of how the carriers structure their margin-based pricing has allowed him to assist some of the most recognizable brands in the US in reducing their parcel costs 10-30%. He welcomes questions and comments, and can be reached at 858.879.2020 x117 or trevor@shipware.com JULY-AUGUST 2016 | PARCELindustry.com

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UNPACKING THE GRI Annual carrier rate increases — what they are and what parcel shippers can do about them

By Andy Brueckner & Travis Rhoades

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enjamin Franklin once said: “In this world nothing can be said to be certain, except death and taxes.”

Well, Mr. Franklin clearly wasn’t a parcel shipper — if he was, he surely would have added the yearly General Rates Increase (GRI) to that list of certainties.

Parcel shippers know the term GRI well, mostly because of its impact on their annual parcel spend. The GRI refers to an annual increase of rates that parcel carriers assess to shippers utilizing their services, usually amounting to about a 4.5-6% increase of their parcel spend — or so it might seem at first glance.

What shippers often don’t know is that the announced GRI represents merely an average of different rate increases across different service types. So, for example, the real numbers might include a six percent increase on ground commercial oneto-five-pound packages in zone 4, while a one-to-five-pound package in zone 2

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is only a two percent increase. Several other increases are distributed unevenly, then averaged together in order to calculate that year’s GRI. As you can imagine, these different rate increases impact different shippers in different ways. If a parcel shipper’s shipping profile is primarily comprised of the hypothetical one-to-five-pound zone 4 packages referenced above, the dollar amount attached to that shipper’s rate increase is going to be much more substantial than a shipper who primarily ships the hypothetical one to five packages in zone 2.

In other words, carriers typically target their most utilized areas for higher increases — the areas in which they want to improve their margins the most. The result, of course, is that shippers who do not uniformly utilize every shipping category in the way the GRI outlines (AKA, the vast majority of shippers) will experience a higher rate increase than what is reported in the GRI. Typically, the reported GRI amounts to a 4.5-6% annual increase. This in and of it-

self is daunting for many parcel shippers, but based on the uneven distribution of rate increases targeted by carriers, many shippers find their parcel spend increased by a percentage in the double digits!

It’s also important for shippers to remember that any standard year-over-year increase based on a percentage of parcel spend will compound with each successive year, resulting in progressively higher increases.

The figure on the next page assumes a flat six percent GRI (often the best case scenario for many shippers affected by uneven distribution) applied over the course of four years for a parcel shipper, with no additional service utilizations each year.

As you can see, the GRI, when compounded over the course of four years, ultimately increases the parcel spend by 26% (as opposed to 24%, as one might expect). And that’s assuming a “best case scenario” rate increase and no additional service utilizations.

Like taxes, the GRI occurs every year

the GRI is the best way to mitigate its impact on a shipper’s overall business. Below, we have isolated three tips for parcel shippers attempting to plan for the GRI: 1. Understand the Shipping Profile: It is critical that shippers understand what service types they use, what weights they ship, what zones they ship to, and what accessorials and surcharges are imposed on their account. All of these factors can be targeted in the annual GRI — and often are. It is only when a parcel shipper understands their unique shipping profile that they can begin to understand how the GRI will impact their business and future shipping behaviors.

2. Optimize the Carrier Agreement: For parcel shippers who have not renegotiated their carrier agreement in several years, but have continued to be assessed new rate increases each year, it is highly unlikely that those agreements are still serving the shipper’s needs. Taking a data-based approach to renegotiating that carrier agreement for mutual accountability between the shipper and the carrier can produce lucrative results; indeed, if that same $100,000 parcel shipper mentioned earlier were to renegotiate their carrier agreement and save even 10%, they would be in a much better

4-Year Impact of GRI Starting Point

Year 1

Year 2

Year 3

Year 4

$100,000

$106,000

$112,360

$119,101

$126,247

26% Total Increase (although admittedly, the GRI usually occurs around the start of the new year rather than April). And also like taxes, only the absolute largest shippers with massive parcel spends have any hope of avoiding or side-stepping the GRI. For most shippers — especially Internet retailers or e-commerce companies that ship primarily residential, large, or heavy packages — the GRI is an unavoidable reality. But it is also a reality that can be managed with proper foresight and preparation. Typically, it cannot be mitigated entirely, but its impacts certainly can be.

The numbers make it clear that shippers must account for the GRI in their yearly planning sessions. Proactively planning for

position when it comes to a GRI, which compounds the amount of the total spend over multiple years. And for some larger shippers, it is even possible to negotiate a graduated cap in which they may accept, for example, only a two percent rate increase in year one, a 2.5% increase in year two, and a 3.5% in year three.

3. Utilize Predictive Analysis: While carriers do not outright announce and outline the service areas where rates will be increased in the months leading up to the official announcement, they do provide clues through the announcements they release leading up to it. This year, carriers have released some discussing the impact

of seasonality; it is reasonable, therefore, to assume there may be increases in seasonal surcharges and accessorials. In that case, parcel shippers can begin to look at what an increase in rates during the holiday season would do to their parcel spend.

Utilizing a simulation tool, which applies a GRI to previous years’ shipments, provides insight into the impact of the GRI on your historic shipments, letting you better plan for selecting service types and budgeting appropriately. A shipper may determine that if the cost of their shipping is to rise by 10%, the cost of the good(s) may rise accordingly, the shipping charges customers pay may have to rise, or more cost efficient service types will need to be selected. These sorts of upfront preparations can ultimately help to mitigate the impacts of the GRI. Parcel shippers have an obligation to understand how annual GRIs will impact their overall parcel spend. Every shipper’s situation will be different based on their unique shipping behaviors and characteristics, but one thing will be the same for all: shippers must not take this number at face value. A 4.5% GRI could represent double digit increases — thousands of dollars — to your shipping costs. It is only through a careful understanding of their shipping profile, a carrier agreement built on a strong foundation of mutual accountability, a data-based approach to predictive modeling, and the proper simulation tools, that shippers can mitigate the impacts of the GRI on their overall business.

When it comes to Benjamin Franklin’s quote about life’s certainties, we were mostly in agreement, with the one notable addition of the GRI. But he also once said that “an investment in knowledge pays the best interest.”

And we have to admit — where the GRI is concerned, we couldn’t agree more. ¾

ANDY BRUECKNER is Vice President, Business Solutions at VeriShip and specializes in developing strategies to optimize parcel carrier agreements. He can be reached at Andrew.Brueckner@veriship.com.

TRAVIS RHOADES is Director of Data Science at VeriShip and is responsible for the creation of valuable information products from VeriShip’s vast data resources. He can be reached at Travis.Rhoades@veriship.com.

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PARCEL COUNSEL

BY BRENT WM. PRIMUS, J.D

A First Look at Consignee Chargebacks onsignee charge backs have been around in various forms for a long, long time. However, in recent years a new form has arrived, which gives rise to a new set of problems for sellers of goods and their carriers.

The older form of consignee chargebacks occurs when the seller ships the wrong product or quantity. Not receiving what it intended to buy, the purchaser adjusts the invoice amount to correspond to the goods actually received. The more recent form of consignee chargebacks arises out of a problem with the manner or way in which the goods are delivered — as opposed to a problem with the goods themselves.

A frequent example of this category of chargebacks is when the seller’s carrier misses a delivery appointment. For instance, a receiver may require the delivery appointment to be made 24 hours in advance. If the carrier arrives at destination outside of a specified window of time, the receiving buyer reduces the seller’s invoice by a certain amount, that is, a chargeback.

It should be noted that the term “shipper” is usually used in this column to refer to a customer of a carrier. However, from a broader viewpoint, a particular company will typically both ship and receive goods.

For instance, a manufacturer who receives raw materials and ships finished products.

This means that a particular company will, depending upon the situation, be a receiver or consignee with respect to its vendors and be a consignor with respect to its consignee purchasers. Accordingly, a company could have a schedule of 58

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chargebacks that it imposes upon deliveries made to it by its customers… while at the same time it is subject to chargebacks when delivering its products. This also means that a reader of this column could be on either — or both — sides of this issue.

While it may not be unreasonable for a receiver to use monetary sanctions to help regulate or manage a constant flow of trucks with a finite amount of dock space, over time the dollar amount of chargebacks can have a significant economic impact on the shipper consignor.

In addition to deductions for missing a delivery appointment, there can also be chargebacks for rescheduling a delivery appointment and other sundry items such as a missing packing list. It is my understanding that these chargebacks can range from $100 to as much as $500 or even more. For certain deliveries there could be multiple chargebacks.

Up to this point, we have only considered the relationship between the selling consignor and the purchasing consignee.

However, as a seller starts to feel the economic pinch of the chargebacks, the carriers also become involved. This is because the seller will look to the carrier for compensation and file a claim with the carrier to recover its loss. However, the carriers will almost universally reject such claims on the grounds that they are in the nature of “consequential or incidental damages,” which, as a general principle, are not recoverable unless reasonably foreseeable.

Given all of the above, it may be hard, if not impossible, for a “shipper of goods and receiver of chargebacks” to eliminate them entirely. However, there are steps a company could take to attempt to minimize them.

From a legal perspective, the point in

time to best address consignee chargebacks is when negotiating purchase agreements or supply contracts. Do not put chargebacks in the “by the way” category. In the context of a $500,000 sale, a $100 chargeback may seem insignificant… but it isn’t. To take one not at all improbable example, a $500 chargeback for a shipment of $1,000 in goods on one pallet would probably eliminate any profit.

From an operational viewpoint, establish systems to track chargebacks by category, carrier, and vendee as well as amount. An analysis of those results could reveal patterns in the underlying causes for chargebacks that could lead to a change in shipping patterns or procedures that could in turn reduce the chargebacks.

For instance, if certain carriers are triggering more chargebacks than your other carriers, a discussion with them would be in order to try to further identify the problems — and possible solutions. Depending upon a shipper’s bargaining power with the carrier, a shipper might even get the carrier to agree by contract to “share” at least a portion of the dollar amount of the chargeback.

Alternatively, if certain receivers or locations are the source of more chargebacks than other receivers or locations, than a discussion as to why this is so would also be in order. In saying this I am well aware of the fact that the “problem receiver” might be one’s largest customer… but hey! It never hurts to ask. ¾

BRENT WM. PRIMUS, J.D., is the CEO of Primus Law Office, P.A. and the Senior Editor of transportlawtexts, inc. Previous columns, including those of William J. Augello, may be found on the PARCEL website by searching PARCEL Counsel. Your questions are welcome at brent@primuslawoffice.com.

WRAP UP

BY MICHAEL J. RYAN

The Perfect Delivery ave you ever ordered some thing online in the afternoon and checked to see if there was a tracking number by evening? You likely have… and are likely checking it again in the morning to see if it has any check points or scans. The speed of e-commerce is moving faster each day. We all want it fast and cheap.

These are two words that don’t typically go together. A perfect delivery is getting it on time (based on expected delivery day), with the correct items, and intact (no damage).

We have all experienced the “perfect delivery.” However, we have all experienced the “not so pretty delivery” (likely more often than we have experienced the perfect one).

Let’s review this in more detail.

ON-TIME DELIVERY This is a very complicated concept. An on-time delivery starts with the expectations of the consumer. There are many different delivery options being offered by the e-tailers. The new norm is becoming two-to-three-day delivery, whereas this used to be a premium service. As Amazon continues to expand its warehouse network and its new air network, it is moving forward to making the new delivery norm one to two days. Many of the brick and mortar retailers are quickly implementing programs to ship from store.

This will get them to next day delivery and will put pressure on Amazon.

CORRECT ITEMS We all have high expectations that we

will get what we ordered. Have you ever opened a package only to find out that you have the wrong item or the incorrect amount? This is where the real fun begins. It is a very frustrating process to prove to an e-tailer that they sent you the wrong items or quantity because, in their view, the paperwork is correct and they don’t make mistakes. This part of the perfect delivery has nothing to do with the transit or carrier but the consumer is not happy. This type of a delivery can lose a customer for good, and this customer will probably share this experience with 10-20 people.

their parcel was not handled with gentle loving care. Again, the perception was that they did not have a perfect delivery.

Many e-tailers are developing enhanced communication with their customers so they can inform them throughout the short delivery process that their shipment is moving along and when they can expect to get it. This is helping to manage the “perfect delivery” expectation. As the e-commerce delivery world gets closer to the consumer, there will be fewer touches to the parcel, which will minimize damage… also contributing to a perfect delivery. Many millennials prefer to receive

Many millennials prefer to receive communication via their mobile phones, but nothing replaces a strong customer support team.

INTACT There has been an increase in e-tailers trying to build their brand with branded boxes, personal notes on the inside, or added stickers on the outside of the box.

If you receive a box and it sounds like it is in multiple pieces, then it probably is.

Many e-commerce packages go through high-speed sort facilities that on occasion will get marked up in the sort process. When a consumer sees scuff marks or dented corners, they have a sense that

communication via their mobile phones, but nothing replaces a strong customer support team. At the end of the day, people like to work with people. The perfect delivery is a complex process but is what we all expect. Take notice of the next one you receive on your door step! ¾

MICHAEL J. RYAN is the Executive Vice President –Parcel Solutions at Pro Star Logistics and has over 25 years’ experience in the parcel industry. He can be reached at 708.224.1498 or michael.ryan@prostar.com.

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