Finding efficient shipping solutions can spell the success or failure of small to medium-sized enterprises (SMEs) and online businesses.
When everything is readily available online, today’s consumer is aware that they can get something they need or want in an instant – which is why your business has to keep up, or else risk losing your customers to the competition.
One popular strategy is multi carrier shipping, a method that involves using several logistics solutions to fulfill orders.
What does “multi carrier shipping” even mean?
The term “multi carrier shipping” may not be as familiar to everyone, especially to new or small business owners.
Where the more traditional single carrier depends on a sole logistics provider to meet all their shipping requirements, multi carrier shipping refers to the operational practice of working with more than one service provider to handle the shipping and delivery of products.
Also referred to as “aggregate shipping,” multi carrier shipping solutions utilize specialized software, which evaluates quotes and advantages from various shipping providers to identify the most suitable option for a specific shipment.
This software often plays a dual role by not only selecting the optimal carrier but also tracking the progress of the freight throughout the shipping process.
In the Philippines, the accelerated growth of ecommerce has brought forth a surge in demand for efficient, reliable and affordable logistics solutions. So, with consumers expecting quicker turnaround times for their deliveries, many businesses are considering multi carrier shipping to navigate the challenges of an expanding, yet volatile, online market.
Also read: Common Challenges in Last Mile Delivery
logistics providers and help them save on costs.
5 Benefits from multi carrier shipping
Here are five reasons to look into leveraging multi carrier shipping solutions for your business:
Diversified delivery options. Multi carrier shipping allows businesses to offer a variety of delivery options to cater to the specific preferences of their customers. Whether it’s express delivery, standard shipping or economical choices, this flexibility enhances the overall customer experience.
Wider geographic reach. The archipelagic nature of the Philippines poses a unique challenge for businesses looking to reach customers across different regions. As the different freight forwarding companies have varying geographical limitations or service areas, multi carrier shipping addresses this challenge.
Better control over costs. Multi carrier shipping allows businesses to manage costs by selecting carriers based on competitive rates for different destinations, package sizes and delivery timelines.
Here are some cash flow management tips to help you manage your finances and ensure sustainable growth.
Risk mitigation. With a single carrier, your business is at the mercy of that one provider, whatever the cause of disruptions, delays or other unforeseen challenges. You have no other choice but to wait for them to fix things from their end.
Having more than a single courier or freight division available to deliver your goods ensures that you won’t have to make compromises.
Improved customer satisfaction. Some customers may have a preferred courier or a company they want to avoid because of past experiences. Offering multiple shipping options and the luxury of choice can only enhance customer satisfaction.
5 Disadvantages of multi carrier shipping
While multi carrier shipping brings several advantages, it’s just as important to consider how there can be potential drawbacks as well. Businesses should weigh these factors before adopting this approach:
Complex logistics. Coordinating multiple carriers can be complicated and may require advanced logistics management systems to streamline your business operations effectively.
SMEs, for instance, might not have the adequate resources to accommodate it as a cost-effective solution.
Integration can be problematic. Just as managing the logistics can be complex, the integration of various carriers into your system can present bigger challenges if you’re looking to streamline your shipping and delivery.
You may need to invest in compatible software and technologies that might be expensive for a new or small business owner to afford.
Increased overhead. Managing relationships with multiple carriers may lead to higher administrative overhead and increased complexity in accounting and billing processes, which can complicate your already-streamlined operations.
Lack of quality control and assurance (QC and QA). Ensuring consistent service quality across different carriers requires vigilance to maintain a positive customer experience. A small business, which is often run by the owner themselves, might not have enough bandwidth to monitor QC and QA of the carriers’ services.
Cost considerations. Ultimately, when it comes to costs associated with multi carrier shipping, smaller businesses may find that it’s not the most cost-effective option. The successful implementation of aggregate shipping requires using compatible technology such as a logistics management software, which is a potential entry barrier for some businesses.
Why choose Ninja Van’s one-stop logistics solution
If multi carrier shipping isn’t exactly the best fit for your business, Ninja Van can provide a hassle-free solution to streamlining your shipping and logistics operations.
With extensive experience in the Philippines and Southeast Asian region, we offer the same benefits as multi carrier shipping does, but without the negatives:
tailor-fit for businesses of all sizes.
1. Enjoy end-to-end logistics solutions for businesses
Ninja Van covers the entire spectrum of logistics, from sourcing and procurement to fulfillment and warehousing, cross-border shipping, and last-mile delivery. This end-to-end approach ensures a seamless and integrated logistics experience for businesses of different sizes.
2. Communicate with ease through a single point of contact
Dealing with multiple carriers can truly be cumbersome. We simplify the process by acting as your one-stop shop for businesses, streamlining communication and reducing the complexities associated with managing multiple carrier relationships.
3. Leverage customized logistics solutions for businesses of different sizes
Recognizing that the logistics needs of businesses vary, we tailor our solutions to meet the specific requirements of SMEs and established ecommerce players. This flexibility helps ensure the scalability and efficiency for our partners.
4. Reach and access untapped opportunities in the SEA network
With a robust presence in the SEA, we leverage our extensive networks to provide reliable and efficient shipping services across multiple countries. This regional expertise positions Ninja Van as a strategic partner for businesses with cross-border shipping requirements.
So, while multi carrier shipping offers some sense of flexibility, businesses – especially growing enterprises – should carefully weigh its advantages and disadvantages.
Ninja Van’s one-stop logistics solution can offer your business a simplified, efficient and tailor-fit approach to overcome shipping challenges, enhance productivity and deliver a delightful customer experience in today’s competitive market.
Ninja Van will go the extra mile to help your business succeed. Start shipping with us today!
More logistics tips to help your business:
How 3PLs Help Your Ecommerce Business Grow
Shipping from China to the Philippines: An Easy Guide
What is Full Truckload and Less Than Truckload in Shipping?
