There’s Dollars in that data!!

Start saving five to ten percent on your parcel spending. This week I’ll walk you through three often-overlooked opportunities that drive immediate, measurable results.

Air shipments that should be moving by Ground

Many shippers unknowingly pay air rates for packages that never see an airplane. Carriers frequently route “air” packages through the same ground networks while still charging air service, air residential fees, and air fuel. The difference in cost can be dramatic—often 45 to 75 percent more expensive than the identical ground service.

A practical rule of thumb:

• Next Day Air, Zone 2 – Will deliver next day via ground
• 2-Day Air, Zones 2–4 – Will deliver in two days via ground
• 3-Day Air, Zones 2–5 – Will deliver in three days via ground

Industry studies consistently show that 30–40 percent of air packages can be shifted to Ground without any impact on customer delivery expectations. This is where an informed partner can help you evaluate lane performance, validate transit times, and put a strategy in place to hold those savings over time.

STOP OVERPAYING!

The 10:30 AM Next Day opportunity

Here’s a lesser-known insight: a Next Day Afternoon service level often still arrives in the morning. Most delivery routes are structured with deliveries made first, followed by afternoon pickup operations. As a result, more than 90 percent of deliveries—across all service types—occur before 11 a.m.

By tactically moving from “Next Day by 10:30 AM” to “Next Day Afternoon,” many shippers maintain the same delivery experience while reducing their cost by 5–10 percent. The best way to validate this is through a delivery-time audit; even a small delivery sample will reveal the pattern.

A critical reminder for FedEx shippers: Ground vs. Home Delivery

FedEx provides strong service, but the distinction between Ground (commercial) and Home Delivery (residential) is essential. Residential packages shipped via FedEx Ground trigger significant penalties because the residential-specific discounts don’t typically apply.  An ADDITIONAL cost penalty is that fuel is calculated on the total shipment charge.  So when your accessorials are LIST rate, your fuel cost is higher.

This misclassification of the listed loss of discounts typically costs $2.50 to $7 per package. The good news? It’s easy to identify and correct. The key is to implement a periodic audit process to ensure your team maintains compliance over time.

To summarize, THERE’S GOLD IN THEM THAR HILLS, translation, there are dollars in your data, you just have to know how to mine it.

Mike Blair, the Parcel Coach, has been helping businesses save on their parcel shipping for 36 years. For this and more helpful advice watch youtube.com/@ParcelCoach.