Multi-Carrier Strategy: Benefits & Implementation Relying on a single carrier limits options and increases risk. Here's how to implement an effective multi-carrier strategy.
Why Multi-Carrier?
Benefits
Benefit Impact Cost savings 10-30% through competition Reliability Reduced single-point failure Coverage Best carrier per route Negotiation Leverage with carriers Service options Speed/cost choices
Single-Carrier Risks
Risk Consequence Rate increases No alternative Service disruptions All packages affected Capacity limits Peak season issues Coverage gaps Some areas underserved
Carrier Selection
Major Carriers
Carrier Strengths USPS Residential, lightweight UPS Business, reliability FedEx Speed, tracking DHL International
Selection Criteria
Factor Consideration Price Zone, weight, volume Speed Transit times Coverage Geographic reach Reliability On-time delivery Service Customer support
Implementation Strategy
Carrier Mix
Volume Recommended Mix Small (<100/day) 2 carriers Medium (100-500) 3 carriers Large (500+) 3-4 carriers
Routing Logic
Condition Route To Weight < 1 lb USPS First-Class Residential USPS or UPS Commercial UPS Ground Express FedEx or UPS International DHL or USPS
How It Works
For each package:
Calculate rate from Carrier A
Calculate rate from Carrier B
Calculate rate from Carrier C
Select lowest rate meeting requirements
Generate label
Automatic best-rate selection:
All carriers : USPS, UPS, FedEx, DHLReal-time rates : Current pricingRule-based : Apply your preferencesOne-click : Best rate selected
Cost Comparison
Example Savings
Shipment USPS UPS FedEx Best 1 lb, Zone 3 $5.20 $8.00 $7.50 USPS 5 lb, Zone 5 $12.50 $11.00 $12.00 UPS 10 lb, Zone 7 $22.00 $18.50 $19.00 UPS Overnight $45.00 $42.00 $38.00 FedEx
Annual Impact
1,000 orders/month × $2 avg savings = $2,000/month = $24,000/year
Track by Carrier
Metric Compare On-time delivery % by carrier Damage rate % by carrier Cost per package By carrier Claims success By carrier
Optimization Cycle
Collect performance data
Analyze by carrier
Adjust routing rules
Monitor improvement
Repeat
Technology Requirements
Integration Needs
Component Purpose Rate APIs Real-time pricing Label generation Multi-carrier labels Tracking Unified visibility Reporting Performance analysis
All-in-one solution:
All carrier rates
Best-rate selection
Unified label printing
Consolidated tracking
Cost analytics
Carrier Relationships
Negotiation Leverage
Lever Approach Volume Commit for discounts Competition Reference other rates Growth Promise future volume Reliability Offer consistent business
Conclusion A multi-carrier strategy reduces costs, improves reliability, and provides better service options. Use atoship to access all major carriers with discounted rates, automatic rate shopping, and unified management.
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