PARCEL S 2017 CARRIER PERFORMANCE SURVEY
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2 PARCEL S 17 CARRIER PERFORMANCE SURVEY A look at how our readers view various aspects of carrier performance. How does your opinion compare? By Amanda Armendariz Once again, we asked, and you answered. Thank you to those of you who took the time to fill out our carrier performance survey, in which we asked you to rate the carriers on a variety of issues like pricing, ease of negotiation, on-time delivery, and more. Your input allows us to benchmark these aspects year after year, giving us a convenient comparison tool to examine the top players in this space. One point I found extremely interesting is that the usage of USPS jumped by eight percent compared to last year from 7% to %. I m always encouraged when I see more and more shippers including the USPS in their carrier mix, since for some shipments, the USPS can provide a distinct advantage. On the flip side, the number of shippers utilizing FedEx and UPS for their domestic parcel shipping went down slightly, from 5% and 1%, respectively, to % to 7%. I also enjoy seeing what our readers think about a variety of questions that are commonly asked in the parcel industry things like whether there is enough competition to keep pricing fair, how important regional carriers are to a company s shipping mix, and a shipper s biggest reason for modifying their primary carrier. I think it s helpful for shippers to be able to have an at a glance look at how their peers respond to these questions, since it s likely that our readers are asking themselves these same questions regarding their shipping operation. So take a look and see where your opinion lies compared to those of your peers! FedEx UPS USPS Did you use FedEx in the last 1 months Did you use UPS in the last 1 months Did you use USPS in the last 1 months 1.%.% 1.39% 3.5% 77.7% 3.1% SEPTEMBER-OCTOBER 17 PARCELindustry.com 1
3 Rating the Carriers On a scale of 1-1, with 1 being the highest rating. Customer Service Claims Processing FedEx.7 FedEx.1 UPS.39 UPS 5.77 USPS 5.57 USPS On-time Service Performance Refunds for Late Delivery FedEx. FedEx. UPS 7.7 UPS 5.59 USPS.3 USPS Delivery Performance (driver courtesy, package handling) FedEx 7.53 FedEx. UPS 7.35 UPS 5. USPS. USPS.51 Pricing (published rates for service levels, willingness/fairness of negotiations) 1 1 Other Insights into Our Industry Do you think that there is enough competition in the parcel delivery market to keep pricing reasonable and service good? 7.5% 5.% Do you think that the cost of transportation will be a greater percentage of gross company revenue in 5 years than it currently is? 1.97% 1.3% Last year, only 7% of our respondents answered in the affirmative. PARCELindustry.com SEPTEMBER-OCTOBER 17
4 How important are regional carriers to your shipping mix? Very important Important Somewhat important t important at all 15% 1.7% 3.33% 5% The bad news: the number of shippers who said regional carriers were very important to their shipping mix declined slightly. The good news: the number that said regionals weren t important at all also declined by over five percent. So while regional carriers may not be overtaking the Big Two anytime soon, at least more and more shippers are recognizing that these carriers can indeed have a seat at the table. If regional carriers are part of your shipping mix, what percentage of parcels do you ship with them? 5.13% 5.13% 1-5% -1% 11-5% -5% More than 5% 53.5%.51% 15.3% If you use regional carriers, what is the PRIMARY reason you chose to do so? 5.% Cost Service Speed Reliability Other 5% 1.53% 1.53% 3.%
5 Check all of the carriers and levels of service you have used so far in 17: Parcel Regional Next Day 13.5% Parcel Regional -Day 1.17% Local -Day 1.17% Consolidator Next Day.% Consolidator -Day 1.9% Parcel Regional Ground 7.1% Local Next Day.3% Local Ground 5.% Consolidator Ground.7% Same Day Service (i.e. airlines) 1.% USPS Next Day 5.7% FedEx Next Day 7.7% FedEx -Day 7.5% FedEx Ground 7.7% UPS Next Day 9.9% UPS -Day 7.% USPS -Day.71% LTL 59.3% USPS Ground.1% UPS Ground 77.97% 1 What is your biggest complaint about your primary domestic parcel carrier? Accessorial Charges 35.71% If you have modified your PRIMARY carrier in 17, what was the reason for changing? Claims Processing 1.79% Customer Service Response 7.1% Driver Behavior 3.57% Fuel Surcharges 3.57% Fuel Surcharge Reversals.% Invoices 3.57% Negotiating Contracts 5.3% On-time Performance 3.57% Pricing 1.7% Refunds for n-performance 3.57% Relationships with Carrier Reps 3.57% Residential Deliveries 3.57% Service Failures.93% Tracking.% Needed to achieve better pricing Dissatisfied with service Changed our level of service (i.e., air to ground) Diversified to use more carriers Reduced the number of carriers used Rebid transportation and a different carrier(s) won.% %.7% 15.15% % 1.1% 1 PARCELindustry.com SEPTEMBER-OCTOBER 17
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