Parcel - March/April 2009 - (Page 14) REGIONAL ALTERNATIVES with Rob Shirley Competing in a Tough Market With the collapse of DHL and a significant reduction in orders, both UPS and FedEx have again raised their rates, increasing the cost pressures for shippers. And it’s not just costs that are a concern for shippers. The November 2008 issue provided the results of PARCEL’s annual best practices survey, in which respondents noted that on-time service performance and delivery performance by the main carriers had often worsened compared to the previous year. Regional carriers could provide the opportunity you need to receive improved service from your carriers. Both shippers and carriers should consider what is done in New Orleans. They call it Lagniappe — it means a little something extra for special customers, like 13 donuts for the price What options do regional carriers have? 3 Provide your top shippers the best service with earliest delivery, latest pickup and premier customer service. Make sure executive management meets with these customers quarterly. Your best source to grow business is with existing customers. Increase communications now. Keep your technology current, and expand it. Technology not only improves service, it also cuts costs and differentiates you from the competition. Your customers know the globals have it; they won’t consider a regional equal until it is proven. It’s more important if your drivers are primarily independent contractors. Make sure the interface with customers is solid and they know it. Work ecology into your cost cutting. Fuel reductions do both at once. Promote this to customers. Join the Express Carriers Association and/or the Messenger Courier Association of America to learn from other regional carriers. Business will be better in a year and good by 2011. 3 3 3 3 14 MARCH 2009 | www.PARCELindustry.com http://www.PARCELindustry.com
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