The Case for Multi-Carrier Parcel Solutions: Simplifying Complexity with Sendflex

The September - October 2024 edition of Parcel Magazine featured an article entitled “The Case Against Multi-carrier Parcel Solutions: Why A Single Carrier Can Be More Efficient.”  The principal argument presented in the article was that by using a single carrier’s “advanced technology” and suite of delivery services, shippers can avoid the complexity, costs, and operational overhead associated with managing a multi-carrier solution. 

In this article, I will make the counter-argument: that with the explosive growth of eCommerce, shippers can’t hide from the complexity that has crept into the parcel industry and is eroding shipper margins. The complexity challenge cannot be solved by simply sourcing with a single carrier, no matter how comprehensive their services are or how efficient their shipping systems are at printing labels. Today, there are many more decision factors and variables that need to be considered to manage costs and service offerings effectively.

Multi-carrier

 

Unlike carrier-provided shipping systems operating at the end of a warehouse conveyor, the Sendflex parcel TMS platform was designed from the ground up by founders with over 100 years of experience in the parcel technology space to solve for complexity. At its core, Sendflex houses an in-platform optimization engine designed to automate complex decision-making throughout the order-to-invoice process, protecting margins while streamlining operations. Best of all, Sendflex shifts parcel management control to business users, making it easy to set up complex rules in minutes for optimized packing, carrier service selections, markups, and customer delivery preferences instead of weeks of custom programming.


Below are five ways that Sendflex Parcel TMS conquers complexity:

1. High-speed Rating and Delivery Options in Digital Storefronts

The digital storefront is the new battleground for customer experience and brand loyalty. Just as marketing messaging has become more targeted based on customer-specific product preference data, offering delivery methods suited to the customer is also a key differentiator. In fact, a recent survey found that 34% of online shoppers now expect multiple delivery options.


For example, some customers may want same-day delivery, PO box deliveries, specialized services like BOPIS (buy online, pick up in-store), more sustainable choices, or over-the-threshold setup services. And in B2B environments, the need for customer choice is even greater, with many business customers preferring to use their own carrier billing accounts or negotiated rates. Not all carriers can provide all these services cost-effectively, nor can their single-carrier solutions make data-driven, customer-specific decisions or account accurately for such preferences.


Using slow and unreliable carrier APIs in shopping carts can’t keep pace with the speed of eCommerce. Sendflex Parcel TMS bridges this gap by incorporating an in-platform, high-speed rating and routing engine to iteratively calculate and qualify hundreds of delivery options based on carrier contract rates, surcharges, special service fees, and time-in-transit data—all in milliseconds. With configurable business rules, Sendflex allows businesses to adopt flexible pricing strategies, ensuring faster, more informed decision-making to meet both customer expectations and operational goals.

2. Improve Margin By Plugging Spend Leakage

Free shipping is a crucial part of the eCommerce experience, with 90% of shoppers abandoning shopping carts if they don’t see it offered at checkout, according to a 2024 survey by McKinsey. But, of course, free shipping isn’t actually free. Businesses need to accurately calculate or, better still, avoid unexpected shipping costs to minimize margin erosion. Unfortunately, the gap between expected and actual carrier costs continues to widen as rate structures grow more complicated, with added surcharges, fluctuating discount levels, and seasonal pricing changes.  Single carrier solutions don’t focus on shipper’s margins, but Sendflex Parcel TMS does.


Sendflex addresses the widening shipping expense gap by more accurately anticipating landed shipping costs, comparing alternative services, and automating decisions that avoid unnecessary surcharges where possible. This ensures pricing strategies fit the business’s unique needs rather than applying a one-size-fits-all approach offered by a single-sourced carrier system.


And despite what the naysayers suggest, shippers needn’t fear “volume dilution” of their primary carrier incentive if they diversify their carrier network. That’s not how data-driven decisions work. Sendflex Parcel TMS monitors primary carrier contract compliance in real time, ensuring that shipping volumes are only diverted to alternative carriers once primary discount targets have been met. This approach allows shippers to diversify confidently, creating a win-win-win for shippers, primary carriers, and alternative carriers alike.

3. Make and Keep Cost-Effective Delivery Promises

The previous Parcel Magazine article was correct in stating service level inconsistencies among different carriers. According to a recent DC Velocity article, one in three (27%) home delivery packages are delivered late. Unless shippers opt for expensive express services, most parcel carriers can’t provide firm delivery commitments, especially for ground shipments outside of urban areas.


Parcel TMS platforms leverage predictive machine learning models to monitor carrier performance based on shipping history, providing shippers with more accurate delivery estimates throughout the order-to-delivery process. Even in a single carrier environment, businesses can benefit from these insights, confidently offering accurate delivery windows without resorting to costly premium options.


Sendflex takes this further by integrating advanced data-driven delivery predictions, helping businesses streamline operations, reduce uncertainty, and improve margins as well as customer satisfaction.

4. Intelligent Diversified Carrier Management

Another argument the previous article makes against a multicarrier solution is that it leads to increased administrative overhead. Managing multiple carrier accounts, monitoring service levels, and optimizing for cost can indeed be complicated—but with the right technology, it doesn’t have to be.


Unlike legacy shipping platforms that require costly and inflexible custom programming, Sendflex Parcel TMS enables business users to easily configure automated routing, customer preference, cartonization, and other instructions in minutes instead of weeks. Sendflex dynamically decides when, where, and how to use specific carrier services cost-effectively and efficiently. Rather than avoiding complexity, a well-managed multicarrier approach through a parcel TMS can be a strategic competitive weapon.

5. Intelligent Packing Reduces Carbon Emissions and Waste

Sustainability is increasingly important to consumers, especially younger generations. Most consumers have experienced the frustration of receiving a small product in an oversized box filled with wasteful packaging materials. Sendflex solves that problem by determining the most shipping-cost-effective way to pack an order based on SKU-level packing instructions.


Sendflex analyzes SKU-level data to optimize packing decisions, taking into account factors such as fragility, SKU orientation, available carton sizes, and fill percentage. By reducing wasted packaging, shippers not only avoid unexpected dimensional weight adjustments but also meet consumer expectations for more sustainable shipping practices. The result? Reduced costs, a smaller carbon footprint, and higher customer satisfaction.


Decision intelligence of this magnitude is beyond the scope of single-sourced carrier systems.

Why Sendflex Parcel TMS is the Smarter Choice

There is no doubt that the major carriers offer valuable, quality services. But in an increasingly complex shipping world, Sendflex Parcel TMS provides businesses the flexibility, control, and efficiency to thrive. Whether managing single or multiple carriers, Sendflex simplifies operations, protects margins, and enhances customer satisfaction. For businesses looking to stay competitive, adopting a parcel TMS is not just a smart choice—it’s an essential step toward sustainable growth and long-term success.


Ready to take your parcel shipping strategy to the next level? Contact Sendflex today for a consultation and discover how our Parcel TMS platform can transform your logistics operations.

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Shippers who are used to relying on a primary parcel carrier with unlimited capacity must now manage a broader portfolio of carriers, all with different capabilities, performance records, constraints, and rate structures.

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