A large ecommerce shipper with a global presence requested TransImpact’s assistance to diversify their final mile transportation to multiple carriers and couriers from one national carrier. For over nine years this shipper had single-sourced their transportation, but during the fourth quarter of 2020 their national carrier placed a cap on their volume, which forced the shipper to place approximately 20% of their business with the US Postal Service. The shipper’s product is a very popular gift item, and this unanticipated and forced shipping change during the peak gift-giving season resulted in significant delivery delays, which led to dissatisfied customers and ultimately loss of some business.
After suffering lost revenue and unhappy customers as a result of relying on a single national carrier during a critical peak shipping season, this high-volume shipper decided to diversify their carrier base, specifically for the last mile. Utilizing TransImpact’s extensive carrier database and modeling capability, we worked with the shipper to determine the best regional carrier/courier options for each distribution center for minimal cost impact and operational change and maximum flexibility.