The document provides 4 steps to reduce parcel transportation costs: 1) Manage distribution by using more economical services when possible. 2) Embrace technology like e-commerce solutions to streamline processes. 3) Control all transportation by using your shipping account number for inbound/outbound shipments. 4) Audit carrier invoices to understand costs and prevent overcharges. It recommends partnering with a parcel consultant like First Flight Solutions, who can help analyze spend, negotiate better rates, and ensure savings. First Flight clients reported reducing costs 13-24% through improved processes and carrier relationships.

1. ASK THE EXPERT
4 STE PS
ARE INCREASING PARCEL
TRANSPORTATION COSTS
BY DOUG STARCKE
TO INCREASE PROFITS BY DECREASING SHIPPING COSTS
2 EMBRACE TECHNOLOGY
Are there bottle necks in your operation
incentives, which removes the ambiguity of
carrier pricing agreements. is measure
STRANGLING YOUR PROFIT caused by processes that need to be helps a company to forecast shipping
MARGINS DURING THESE TOUGH streamlined? More than just your shipping budgets and hold the carriers accountable
ECONOMIC TIMES? Whether you are a department is affected by the parcel for the incentives they agreed upon. It will
surf accessory manufacturer sourcing across provider. ere are various technology and also reduce the risk of lost time and revenue.
the globe or an online skateboard retailer E-commerce solutions that improve your
shipping the final product, you should be processing time in the warehouse. In
looking to reduce cost and increase your addition they can also verify customer By managing your distribution, embracing
company’s bottom line. information at order entry; and automate new technology, controlling your parcel
back end accounting post shipping. is spend, and auditing invoices, you will be
improves your company’s processes and able to keep your fingers on the pulse of the
With parcel transportation being one of the helps to identify potential surcharges and parcel environment which has become vital
largest factors contributing to your overhead, additional costs that if aren’t properly in this “just in time” economy. If you can
now is the time to make a direct impact. allocated, could be detrimental to your wrap your hands around this portion of your
Below are some areas where your focus will company’s bottom line. business your company will benefit. If not
bring immediate benefits. managed properly it will lead to a difficult
road for growth.
3 CONTROL ALL YOUR
1 MANAGE YOUR DISTRIBUTION TRANSPORTATION
Where are your customers? Are you Try using your shipping account number for AS YOU SPOTLIGHT THESE CONCERNS
spending money on more expensive services more than just outbound shipments to ON YOUR GROWING “TO DO” LIST;
when a more economical service has the manage costs. Ask vendors to use your there are third parties with years of
same transit time? ese are questions to account number on inbound and third party experience in the parcel industry who can
answer when looking at your customer base. shipments. is helps to protect from assist with these processes and serve as a
Manage your customer’s expectations and additional fees and gives your carrier a true necessary mediator in an industry with only
your margins simultaneously. For example, picture of your total spend. two real competitors. ese consultants are
both major carriers in the parcel industry typically found working with clients in a
have guaranteed day definite Ground service niche market where a company’s annual
which operates on average between 97% - 4 AUDIT CARRIER INVOICE parcel net spend exceeds a quarter of a
99.9% on time delivery. Just because a Your parcel provider’s invoice may look like million dollars. If you decide to seek the
package needs to be delivered in one day, modern hieroglyphics but it’s imperative to expertise of a consultant, make sure you
doesn’t mean you have to pay six times the understand it. Most companies use their partner with one that is not fee based and
cost. Become familiar with your carrier’s carrier invoice to correct chargebacks so only benefits from the measurable
service levels and commitment times to they do not re-occur. However, the best use improvements they provide to your
prevent over spending. of the invoice is to determine your actual 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.
04 - OCT ’ 0 9 T H E L E A D E R I N B O A R D S P O R T S N E W S A N D I N F O R M AT I O N

2. FEEDBACK
Contact FIRST FLIGHT SOLUTIONS today to F I R S T F LI GHT S OLUT IO N S
PA R C E L S P E N D M A N A G E M E N T
assist with your small parcel spend management.
FIRSTFLIGHTSOLUTIONS.COM
888.787.3335
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
FIRST FLIGHT SOLUTIONS PARCEL SPEND MANAGEMENT