Levelling Up Your Multi-Carrier Management Strategy

The supply chain model has undergone dramatic changes that make traditional shipping strategies obsolete. Rate volatility has become the norm rather than the exception, with major carriers implementing general rate increases of 5.9% while some accessorial charges have spiked as high as 20%. This unpredictability makes it nearly impossible for businesses to maintain consistent shipping costs when relying on limited carrier options.

Capacity constraints have emerged as another critical challenge. During Peak seasons, national carriers regularly cap volume or raise rates with minimal notice, leaving businesses scrambling for alternatives. The traditional “loyalty discount” model that once provided some protection has proven inadequate against these market forces, with companies discovering that exclusive partnerships often leave them vulnerable to service disruptions and cost spikes.

Meanwhile, new players are reshaping the old competitive tactics. Innovative solutions now often outperform legacy services in specific markets. This fragmentation creates both opportunities and challenges for businesses trying to navigate an increasingly complex shipping ecosystem.

The solution lies in developing a comprehensive multi-carrier management strategy that provides flexibility, cost control and risk mitigation. Rather than putting all shipping eggs in one or two carrier baskets, forward-thinking businesses are building diverse carrier portfolios that can adapt to changing conditions and requirements.

Successful multi-carrier strategies begin with understanding your unique shipping profile. This means analysing shipment data across multiple dimensions: weight and dimensional characteristics, shipping zones and distances, delivery speed requirements and the split between residential and commercial destinations. This analysis reveals which types of shipments are best suited for different carrier types and service levels.

The next step involves strategic carrier selection across different categories. National carriers like UPS and FedEx remain essential for express services and heavy shipments, but they shouldn’t be your only option. USPS offers competitive rates for lightweight packages, while regional carriers such as OnTrac and LaserShip can provide superior last-mile performance in specific geographic areas. Emerging gig-economy carriers like UniUni and SpeedX are proving particularly effective for lightweight residential deliveries in urban markets.

Implementing a multi-carrier strategy without proper technology support is like trying to conduct an orchestra without a conductor. Technology, such as the Enterprise Carrier Management software becomes essential to make real-time decisions about carrier selection, rate optimisation and service level matching.

Modern shipping platforms enable dynamic rate shopping that compares costs across multiple carriers in real-time, ensuring each shipment is assigned to the most cost-effective option. Companies implementing these systems report savings of nearly 30% on annual shipping costs through intelligent carrier selection and route optimisation.

Automation plays a crucial role in managing the complexity that comes with multiple carrier relationships. Advanced systems handle label generation, compliance requirements and tracking across different carrier networks, reducing manual errors and ensuring consistent service quality. This automation also extends to contract management, helping businesses track rate changes, surcharge updates and service modifications across their entire carrier portfolio.

A successful multi-carrier strategy requires continuous monitoring and optimisation. Key performance indicators should extend beyond simple cost metrics to include delivery performance, customer satisfaction and operational efficiency. Only 60% of companies currently have comprehensive visibility into their tier-one suppliers, highlighting the need for better tracking and measurement systems.

Performance management should evaluate each carrier across multiple dimensions: on-time delivery rates, damage and loss frequencies, customer service responsiveness and billing accuracy. This data enables informed decisions about carrier allocation and helps identify opportunities for service improvements or cost reductions.

Regular contract reviews become even more critical in a multi-carrier environment. With 73% of companies now pursuing dual-sourcing strategies, businesses have more leverage in negotiations and can use competitive benchmarking to secure better rates and terms across their carrier portfolio.

The primary advantage of multi-carrier strategies lies in risk mitigation. When supply chain disruptions occur, companies with diversified carrier portfolios can quickly shift volume to alternative providers, maintaining service levels while single-carrier dependent businesses face significant delays and customer dissatisfaction.

This resilience proved invaluable during recent global disruptions, from pandemic-related capacity constraints to geopolitical tensions affecting international shipping routes. 

Companies with established relationships across multiple carriers were able to maintain operations while competitors struggled with service interruptions and capacity shortages.

Geographic diversification within carrier networks provides additional protection. Regional carriers often maintain better performance in their core markets compared to national providers, while international specialists can navigate complex customs and regulatory requirements more effectively than generalist carriers.