Order Fulfillment, Small Package Carriers, Technology Case Study, CMS Globalsoft, FedEx, Manifesting, Shipping
Today FedEx released a new case study featuring ProPack and CMS Globalsoft (makers of ProPack’s manifest system, WorldLink). This article is available on the FedEx website and provides great exposure for ProPack.
Check out the FedEx case study at: http://images.fedex.com/images/us/2011crimages/compatible_solutions/content/CaseStudy_ProPack_v1.pdf
Order Fulfillment FedEx, Order Fulfillment, Packaging, Shipping, UPS
Carrier pricing for package shipments is based on the shipment’s destination and time in transit as well as it’s package weight and dimensions. Since the destination is set by the customer the most often area targeted for cost savings is the time in transit (or service level). While selecting a Ground or Mail service with a longer transit time can save money it is not the only way to reduce costs. Lesser known is minimizing the size of the shipment’s packaging to save on dimensional weight charges.
Dimensional weight always applies for FedEx, UPS and DHL domestic air and international shipments. For FedEx and UPS Ground shipments it applies over three cubic feet. Carriers charge based on the greater of weight or dims. The length, width and/or height of a package can easily turn a 10 pound package into a 40 pound package, thus increasing the cost of the shipment.
ProPack has designed a series of custom boxes for use by it’s clients. These boxes have scores (or perforated lines) at 2, 4 and 6 inches down from the top of the box. This allows ProPack’s expert packagers the flexibility to “score” down a box to the exact size needed for the product inside. Eliminating any excess height to a package saves on potential dimensional weight charges.
ProPack’s custom sizable boxes help save it’s clients on their shipping costs. This is yet another way that ProPack uses innovation to add value and reduce costs in the supply chain for it’s clients.
Carrier Rates 2013, Carrier, DHL, FedEx, Freight, Packages, Rates, Shipping, UPS, US Mail
Effective Jan. 7, 2013
FedEx Express package and freight rates will increase an average of 5.9% for U.S., U.S. export and U.S. import services. The shipping rate increase will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 2 percentage points.
The following surcharge changes will take effect Jan. 7, 2013, unless otherwise noted, for FedEx Express® services.
Address Correction – From $11 per correction to $12 per correction.
Declared Value – For Express services will increase from $0.80 to $0.85 per $100 of value, minimum charge will increase from $2.40 to $2.55.
Delivery Area Surcharge
- Commercial and extended commercial from $2 per package to $2.15 per package.
- Residential from $3 per package to $3.25 per package
- Extended residential shipments will increase from $3.25 per package to $3.50 per package.
FedEx® Delivery Signature Options – $2 per package to $2.25 per package.
Payer Rebilling – From $11 per shipment to $12 per shipment
· UPS Air and International Services will increase an average net 4.5% through a combination of a 6.5% increase in rates and a two percentage point reduction in the UPS Air and International fuel surcharge table.
· UPS Ground Services will increase an average net 4.9% through a combination of a 5.9% increase in rates and a one percentage point reduction in the UPS Ground fuel surcharge table.
· The Delivery Area Surcharge applied to commercial addresses for U.S. Air Services will increase $0.15.* The Delivery Area Surcharge to commercial addresses for U.S. Ground Services will remain unchanged.*
· The Delivery Area Surcharge applied to commercial extended addresses for U.S. Air Services will increase $0.15.* The Delivery Area Surcharge to commercial extended addresses for U.S. Ground Services will remain unchanged.*
· The Delivery Area Surcharge for U.S. Air Services to residential addresses will increase $0.25.* The Delivery Area Surcharge for U.S. Ground Services to residential addresses will remain unchanged.*
· The Delivery Area Surcharge – Extended for U.S. Ground and U.S. Air Services to residential addresses will increase $0.25.* For a complete listing of eligible U.S. postal codes and to determine which charge may be applied, click here.
· The On-Call Pickup Area Surcharge for extended residential addresses will increase $0.25.*
· The On-Call Pickup Residential Surcharge will increase $0.25.*
· The Delivery Area Surcharge for UPS Hundredweight Service® will increase $0.75.
· The charge for Declared Value will increase $0.05 per $100 of value declared, with a minimum charge of $2.55.
· The charges for Delivery Confirmation Signature Required and Delivery Confirmation Adult Signature Required will increase $0.25.
· The Delivery Intercept charge will increase $1.00* for requests made via ups.com and $2.00* for requests made by telephone.
· The Residential Surcharge for U.S. Ground Services will increase $0.25.* The Residential Surcharge for U.S. Air Services will increase $0.20.* The Hundredweight Residential Surcharge will increase $1.70.
· The Residential Surcharge applied to UPS International Air Services imported to the U.S. or destined to Canada and billed to a U.S payer will increase $0.20.* The Residential Surcharge for UPS Standard shipments will increase $0.25.*
· The 1 UPS Pickup Attempt Labels fee will increase $0.50. The 3 UPS Pickup Attempt Labels fee will increase $0.50. The fee for 3 UPS Pickup Attempt Labels charged to customers that pay Retail Rates will increase $0.25.
· The UPS Next Day Early A.M. premium applied to customers receiving Standard List Rates will increase $1.00. The premium for customers receiving Daily Rates or Retail Rates will decrease by $1.00.
· The minimum disbursement fee for imports to the U.S. will increase $0.50.
· A fee of $3.00 per additional line will apply when more than three entry lines are entered.
U.S. Postal Service Announces New Prices and Services for 2013
Highlights of the new single-piece First-Class Mail pricing, effective Jan. 27, 2013 include:
· Letters (1oz.) — 1-cent increase to 46 cents
· Letters to all international destinations (1oz.) — $1.10
New domestic retail pricing for Priority Mail Flat Rate products include:
· Small box — $5.80
· Medium box — $12.35
· Large box — $16.85
· Large APO/FPO box — $14.85
· Regular envelope — $5.60
· Legal envelope — $5.75
· Padded envelope — $5.95
The USPS rates increase will also cause our MII rates to increase.
DHL Express has announced an average rate increase of 5.9% for its U.S. export and import services, effective January 2, 2013. The average rate increase will be partially offset by a two-point reduction in the Fuel Surcharge index. DHL Express adjusts its prices annually, taking into account inflation and rising costs in the more than 220 countries and territories it serves. Customers should refer to their current DHL agreement to determine the impact of these changes.
5.9% average increase for U.S. export and import services
Two-point reduction in the Fuel Surcharge index
Effective January 2, 2013
Order Fulfillment 3PL, Christmas, Holidays, Order Fulfillment, Shipping, Warehousing
The holiday shipping season makes December by far the busiest month at ProPack. As a 3PL ProPack’s busy when its client’s are busy and most B2B and all B2C businesses are quite active in the buildup to Christmas. ProPack is excited and ready to fully respond to this increase in volume.
ProPack will be in full holiday shipping mode the week of 12/17 through 12/21. Extra staff has been added and shifts are starting early and running late. Personnel are even pulled in from other areas of the company to help in the picking, packing and shipping of product. It’s all hands on deck to help our clients get packages to their customers.
ProPack’s flexibility to expand and adapt to a temporary surge of volume over the Christmas holiday is another great example of how the 3PL is able to add value and reduce costs for its clients.
Order Fulfillment 3PL, FedEx, Fulfillment, Ground, Nashville, Order Fulfillment, Orders, Shipping, Tennessee, White House TN
ProPack is proud to announce that on October 1st of this year we opened our newest warehouse just north of Nashville, Tennessee. This warehouse completes our expansion plans for 2012 and when combined with our Salt Lake City, Utah warehouse provides a very attractive supply chain model for our clients.
The Tennessee/Kentucky area proves a very attractive location to service the East Coast via FedEx or UPS Ground services. From our warehouse north of Nashville we can service the entire East Coast with exception of northern New England in two days ground. When combined with our Utah facility our two warehouses can service 95% of the entire lower 48 states in two business days Ground.
Our new Nashville warehouse also boasts an impressive 100,000 square feet with a 24 foot clear ceiling and temperature control. Starting this January we will be installing racking in half the warehouse with a capacity of over 3000 pallets. As of now all systems are up and running and we’re pushing out hundreds of orders on a daily basis.
ProPack is excited to have completed our two warehouse model and to be servicing 95% of the US in two days via FedEx Ground. Both our Utah and Tennessee warehouses are growing with new business yet still poses a great amount of expansion possibilities. We’re excited for what the future holds for ProPack and the total of three new warehouses we opened this year as well as the added value and cost reduction this will net for our current and future clients.
Northbound Forwarding Blaine, Border Clearance, Package Forwarding, Shipping, Warehousing, Western Canada
If you have a business in western Canada that brings goods in from the US, you may need a consolidation point on the south side of the border. At ProPack, we call this our North Bound Package/Freight Forwarding Service. This service gives you a US address for your vendors to ship to. Once in our Blaine warehouse the shipments can be consolidated, cleared at the border as one clearance and delivered to your door. This is a prompt and low-cost way of getting your goods across the border. With our robust custom built technology, you have complete online visibility to the entire process.
Order Fulfillment, Technology 3rd Party Logistics, Order Fulfillment, Packaging, Returns, Shipping, Technology, Warehousing
Product returns go hand-in-hand with shipping orders. Anyone who orders a product online assumes that they can somehow return that product if it becomes defective or is not what they ordered. Thus, companies shipping product need to be prepared to receive and process returns. When these same companies use a fulfillment warehouse they need to be aware of the returns processing capabilities of their 3rd party provider.
Returns come in a variety of flavors. A shipment can be refused by a consignee and returned to its sender. Likewise, there can be a bad address, causing the shipment to be returned. In both cases the package was not opened and the product can simply be returned to the shelf in the warehouse. Otherwise, a consignee can receive a shipment and later decide to return all or part of the items in the shipment. In this case, an RMS number is often issued by the company along with an address and instructions for how and where to return the item.
The warehouse receiving the return needs to be prepared to quickly receive, identify and report on its contents and condition. Returns must be processed swiftly since the customer is waiting to get a credit back for their purchase. Online visibility is also key for the company to monitor their returns through the process.
ProPack has built a complete returns processing system for receiving, processing and providing online visibility to all client returns. Returns are first entered into our system, complete with an inventory of each item contained within. Clients then receive an email detailing the return and its contents. Once the client authorizes action on the return, its contents are then returned to the shelf, discarded, returned to the customer or held for further inspection. This whole process is visible online along with a complete history of a client’s returns.
Returns are an intricate part of picking, packing and shipping orders. At ProPack, we’ve invested in technology and systems to quickly and effectively drive our returns process. Our added online access allows clients to manage the returns process with complete transparency. This reduces costs and adds value for our clients, allowing them to focus on selling more product and shipping more orders.
For more information please visit our website at www.propack.com.