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TO INCREASE PROFITS BY DECREASING SHIPPING COSTSARE INCREASING PARCEL TRANSPORTATION COSTS STRANGLING YOUR PROFIT MARGINS DURING THESE TOUGH ECONOMIC TIMES? Whether you are a surf accessory manufacturer sourcing across the globe or an online skateboard retailer shipping the final product, you should be looking to reduce cost and increase your company’s bottom line.

With parcel transportation being one of the largest factors contributing to your overhead, now is the time to make a direct impact. Below are some areas where your focus will bring immediate benefits.

1 MANAGE YOUR DISTRIBUTIONWhere are your customers? Are you spending money on more expensive services when a more economical service has the same transit time? �ese are questions to answer when looking at your customer base. Manage your customer’s expectations and your margins simultaneously. For example, both major carriers in the parcel industry have guaranteed day definite Ground service which operates on average between 97% - 99.9% on time delivery. Just because a package needs to be delivered in one day, doesn’t mean you have to pay six times the cost. Become familiar with your carrier’s service levels and commitment times to prevent over spending.

2 EMBRACE TECHNOLOGYAre there bottle necks in your operation caused by processes that need to be streamlined? More than just your shipping department is affected by the parcel provider. �ere are various technology and E-commerce solutions that improve your processing time in the warehouse. In addition they can also verify customer information at order entry; and automate back end accounting post shipping. �is improves your company’s processes and helps to identify potential surcharges and additional costs that if aren’t properly allocated, could be detrimental to your company’s bottom line.

3 CONTROL ALL YOUR TRANSPORTATIONTry using your shipping account number for more than just outbound shipments to manage costs. Ask vendors to use your account number on inbound and third party shipments. �is helps to protect from additional fees and gives your carrier a true picture of your total spend.

4 AUDIT CARRIER INVOICEYour parcel provider’s invoice may look like modern hieroglyphics but it’s imperative to understand it. Most companies use their carrier invoice to correct chargebacks so they do not re-occur. However, the best use of the invoice is to determine your actual

incentives, which removes the ambiguity of carrier pricing agreements. �is measure helps a company to forecast shipping budgets and hold the carriers accountable for the incentives they agreed upon. It will also reduce the risk of lost time and revenue.

By managing your distribution, embracing new technology, controlling your parcel spend, and auditing invoices, you will be able to keep your fingers on the pulse of the parcel environment which has become vital in this “just in time” economy. If you can wrap your hands around this portion of your business your company will benefit. If not managed properly it will lead to a difficult road for growth.

AS YOU SPOTLIGHT THESE CONCERNS ON YOUR GROWING “TO DO” LIST;there are third parties with years of experience in the parcel industry who can assist with these processes and serve as a necessary mediator in an industry with only two real competitors. �ese consultants are typically found working with clients in a niche market where a company’s annual parcel net spend exceeds a quarter of a million dollars. If you decide to seek the expertise of a consultant, make sure you partner with one that is not fee based and only benefits from the measurable improvements they provide to your bottom line.

Doug Starcke is a Managing Partner for First Flight Solutions, LLC, a spend management group with a focus in parcel rate negotiations and process improvements. To learn more about the team at FFS and their services you may view their website at www.firstflightsolutions.com or contact Doug via email at dstarcke@firstflightsolutions.com or phone at 1.888.787.3335 x 503.

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FEEDBACK

1 "First Flight reduced our shipping costs an additional 24%! They improved our carrier relationship, eliminated headaches with our processes, and kept us informed along the way. It’s rare to find a company that truly delivers more than they promise!"

CONTROLLER – SKATEBOARD AND SPORTING GOOD MANUFACTURER

2 "I thought I had the best small package rates and did not have time to listen. Now I realize the value that First Flight Logistics brings to the table with their expertise. They did what they do best which not only reduced my transportation spend by 16%, but also freed me up to focus on growing my business."

eCOMMERCE – CEO

3 “My company will now be able to reinvest over $450,000 back into our business during the next three years thanks to the consulting team at First Flight! They not only reduced our parcel shipping costs tremendously but also helped to implement solutions that will grow our customer base.”

PRESIDENT – CLOTHING / OUTERWEAR WHOLESALER

4 “We reduced our small package shipping cost by 13% thanks to the team at FFL. The process was easy and very effective. We know surfing. These guys know parcel shipping.”

CONTROLLER – SURFING EQUIPMENT AND SUPPLIES MANUFACTURER

5 “As a result of FFL's efforts, we are now saving an additional 19% on shipping costs for our online business. I would highly recommend him to anyone in the online retail industry.”

EB SALES AND MARKETING MANAGER – eCOMMERCE RETAIL

Contact FIRST FLIGHT SOLUTIONS today toassist with your small parcel spend management.

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FIRSTFLIGHTSOLUTIONS.COM888.787.3335