Complete utilization of small package programs
April 6th, 2010 at 07:50am David DiSanto - DiSanto & Associates
Many companies negotiate small package programs to cover the documents in small packages, but how much consideration is given to those shipments with weights between 200 and 300 pounds.
Normally a shipper will tender those shipments directly to an LTL carrier along with other shipments. These shipments are known as minimums in the LTL industry and are either tendered loose or stacked on a pallet and shrink-wrapped.
These shipments can create problems in handling simply because they command an allotted spot with other LTL shipments. They are normally stripped from the pallet and placed in holes between shipments and essentially scattered about the trailer until they are handled again.
Most small package courier companies in the US offer other services such as multi-weight and hundredweight programs geared to the shipments over 200 pounds that are handled within the small package system.
It makes total sense for an organization to look at these additional services provided by US small package couriers since most LTL carriers are shying away and pricing accordingly these type of shipments since they demand a higher degree of handling.
A complete review of your order picking practices must be done in order to reveal if it is cost effective enough and not too labor intensive to move LTL minimum shipments over to multi-weight and hundredweight programs that are offered by US small package couriers.
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Entry Filed under: Functionality, General, Outsourcing, Supplier Performance, Suppliers, Supply Management Best Practices, e-RFx
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