Question 1

What is a parcel shipping strategy?

Accepted Answer

A parcel shipping strategy is the set of decisions a company makes about how it ships — carrier selection, service level choices, packaging dimensions, fulfillment location, and zone distribution — that collectively determine what it costs to move a package from origin to destination. It's distinct from contract negotiation, which addresses the rate applied to each shipment. Shipping strategy addresses the variables that determine what rate tier applies, which carrier charges that rate, and how many surcharges get added on top.

Question 2

How can I reduce my UPS or FedEx shipping costs?

Accepted Answer

Most companies start with contract rates — and that's worth doing. But the more complete answer involves analyzing how you ship, not just what rate you're paying. Carrier mix, packaging analysis, zone distribution, and service level analysis typically identify more savings than a rate renegotiation alone — and those savings don't require a new contract.

Question 3

What is dimensional weight pricing and how does it affect my shipping costs?

Accepted Answer

Dimensional weight pricing is a billing method used by UPS, FedEx, USPS, and DHL in which carriers charge based on the greater of actual weight or dimensional weight — calculated by multiplying package dimensions and dividing by a carrier-specific divisor (typically 139 for UPS and FedEx). If the result exceeds the actual weight, you're billed at the dimensional weight rate. For companies shipping products in packaging that isn't tightly fitted to product dimensions, dim weight charges can significantly inflate cost per shipment.

Question 4

What is zone skipping in shipping?

Accepted Answer

Zone skipping is a shipping strategy in which a company consolidates shipments destined for the same geographic region, transports that consolidated volume to a distribution facility closer to the final destinations, and then injects packages into the carrier network at a lower zone. The result is that individual packages are charged at a lower zone rate, reducing cost per shipment. Zone skipping makes the most sense for companies shipping high volumes to predictable geographic concentrations.

Question 5

How do I know if my carrier mix is optimized?

Accepted Answer

In most cases, you don't — and that's the honest answer. Carrier mix optimization requires modeling your actual shipment data against each carrier's rate structure, zone maps, surcharge schedules, and service performance across your specific shipment types. A shipping profile analysis is the only way to determine whether your current carrier mix reflects the best balance of cost, performance, and leverage.

Question 6

How much can shipping strategy optimization save?

Accepted Answer

ShipRx clients typically achieve savings of 20–30% on average, with some engagements reaching up to 40%. The savings from shipping strategy are additive to contract negotiation savings — a better contract and a better-structured shipping profile together produce more than either does alone.

Question 7

How does ShipRx charge for shipping strategy analysis?

Accepted Answer

ShipRx's fees are 100% performance-based — a percentage of the documented savings generated through the engagement. There is no upfront cost, no retainer, and no fee if we don't deliver measurable improvement. Every engagement is covered by a mutual NDA before any data is shared.

Question 8

How does shipping strategy relate to contract negotiation?

Accepted Answer

Shipping strategy and contract negotiation address different parts of the same problem, and they compound when done together. Shipping strategy changes how you ship — carrier selection, packaging, service levels, zone optimization. Contract negotiation changes what rate is applied. The shipping profile analysis that powers a strategy engagement is also the foundation of a stronger contract negotiation, building the intelligence that makes the next carrier conversation fundamentally more effective.

A Parcel Shipping Strategy Built Around Your Data