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New Year, New ShippingEverything you need to know about changes to shipping in
2015 and how you can capitalize on them and SAVE!
Hosted by: Binghamton Postal Customer Council
Presented by:Lisetta Coffin, Certified Postal Consultant,
Pitney Bowes Major Account Manager
Countdown To A :
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Session Objectives
Less than 35 days left in 2014! There’s still time to be geared up to ship smarter in 2015!!!
Understand the full impact of the upcoming 2015 rate changes from USPS, FedEx, and UPS will have on your organizations’ Operating Budgets!
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USPS IMpb
January 25th, 2015
The Final Countdown to 2015Prepare your organization today….
The cost of doing NOTHING, will be More than the cost of doing something!!!!!
Help your organization avoid “invoice shock” in January when carrier rate changes go into effect.
FedEx & UPS Dimensional Rating Expansion
UPS – December 29, 2015FedEx – January 1, 2015
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What is Dimensional Rating? A billing technique that takes into account the length, width, and height of a package. By charging only by weight, lightweight, low density packages become unprofitable to carriers due to the amount of space they take up in proportion to their actual weight. Dimensional weight rating establishes a minimum charge for the cubic space a package occupies.
A billing technique that takes into account the length, width, and height of a package. By charging only by weight, lightweight, low density packages become unprofitable to carriers due to the amount of space they take up in proportion to their actual weight. Dimensional weight rating establishes a minimum charge for the cubic space a package occupies.
Which costs less to ship? A 3 lb. laptop? Or a 1lb. teddy bear?
ACTUAL WEIGHT
3 LB
DIMENSIONAL WEIGHT
3 LB
BILLABLE WEIGHT
3LB
ACTUAL WEIGHT
1 LB
DIMENSIONAL WEIGHT
7 LB
BILLABLE WEIGHT
7LB
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FedEx & UPS – Dimensional Rating
FedEx and UPS will be expanding dimensional rating to small packages in 2015:
• UPS: December 29, 2014
• FedEx: January 1, 2015
Previously, UPS and FedEx Ground service packages were only subject to dimensional weight rating if they were 3 cubic feet or larger
18” x 18” x 16”5,184 cubic
inches (3 cubic feet)
18” x 18” x 16”5,184 cubic
inches (3 cubic feet)
8” x 6” 4”192 cubic
inches
8” x 6” 4”192 cubic
inches
NOW 2015
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What does this mean for your Carrier bills?
It’s estimated that 85% of all ground shipments will be subject to this new pricing structure, and in many cases, it will result in a large price increase
Some are estimating double-digit cost hikes* for shippers when annual rate increases are factored in
Source:http://multichannelmerchant.com/news/experts-new-ups-dimensional-weight-pricing-will-significant-impact-18062014/
/
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Shipping Costs Are Going to Skyrocket
Depending on what you ship (and how often) with UPS and FedEx, you will feel the impact of these changes:
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A Home Goods Store Ships 100 Packages with FedEx each week…
In 2014:
$37,284
In 2015:$50,232
That’s an increase of $13,000 per year(over $1,000/month)…
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The Market is Responding…
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IM®pb options:
1. Requires a shipping solution – label generated is specific to each mail piece2. Label can be printed with postage, saving the
metering step to apply postage.3. Shipping Solution Uploads mailing information in the required Shipping Services File (SSF)
format (Address data, Zip+4, Class of Service, Extra Services and Mailer ID)
3. Enhanced tracking and visibility4. Facilitates Eligibility for CBP or CPP Discounts
5. Free Insurance $50 Retail & CBP and $100 CPP
1. Preprinted label. Use with Postage Meter Tape.
2. Mailing information is Not uploaded to USPS
3. Facilitates tracking 4. Must pay FULL Penalty rate. Not
eligible for CBP or CPP pricing5. Only get Insurance if it is scanned
at Post Office Retail Counter
vs.
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Organization who implement an IMpb solution will benefit from a discount (called Commercial Based Pricing).
The USPS will also provide Free Insurance because they now have extensive tracking throughout the delivery process
Organizations with consistent volume of packages or mail with Extra Services (i.e. Certified Mail) are great candidates :
• Qualify for CBP discounts - reducing shipping spend• Improve workflows, reduce labor • Provide increased visibility and tracking • Ship smarter – more choice with a multi-carrier solution
IMpb Recap – Hot OpportunityIMpb guidelines go into effect January 2015 – The time to talk about this is now!
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A Great Time to Start Shipping with USPS
The USPS’ IMpb label puts them on par with private carriers like UPS and FedEx when it comes to tracking
• Organization who never considered USPS for shipping should strongly consider them as an option
Organizations who use IMpb will benefit from CBP discounts and will receive free parcel insurance
USPS is now a great carrier option and with dimensional rating changes coming in January to UPS and FedEx, it’s a great time to shift demand
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CarrierManagement SoftwareAllow dimensions to be entered and can calculate the dimensional rate of a package
This provides workflow benefits and also helps with accuracy, preventing rating errors that could result in unanticipated back charges
Enter weight and dimensions into
Enter weight and dimensions into Ss
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Objections – “I only use UPS OR FedEx because their systems are free to use OR we have contract rates with our carrier”• Shipping with UPS or FedEx is going to become more expensive in
2015 due to their new dimensional rating rules
• Consider optimizing the contract rates you are receiving
• Use a software solution to help you adhere to your contract (carrier provided systems are designed to push more expensive services)
• Consider a multicarrier solution to mitigate risk (strikes, different rate zones, dim rating, weather related delays, etc.) of using only one carrier and more importantly so you can make the smartest choice when shipping
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Objections – “We don’t use USPS for shipping because we need to track our packages”With IMpb, the USPS can now provide full end-to-end tracking visibility that is on par with private carriers like UPS and FedEx, making them a great choice for shipping
Furthermore, IMpb processed through a software solution, gives you the best rates, called commercial based pricing, which can help you save money.
You’ll also receive free insurance with USPS and IMpb
Both UPS & FedEx trust the USPS for their “last mile delivery”’. So you can trust the USPS for the whole journey.
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Use this slide for a Full-bleed image
Impact of the 2015 FedEx Ground Dimensional Rating Changesto the Top 25 Box Sizes – from Multi-Channel Merchant
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Saving with the USPS
