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According to Taylor, now the Chief Logistics Officer at the company,
there are nearly 8 million U.S. businesses that send a lot of packages but
not enough to earn special discounts from carriers. “They are paying retail
(or more) to ship. We can save them up to 40% immediately without adding any
complexity to their process.”
When comparing, results can be sorted by pick up or drop off times or
arrival guarantees, depending on the needs of that particular shipment.
Sometimes it’s better to pay a little more to get the package to the
customer a day sooner, and delight that person’s child on their birthday,
for example. USPS, DHL, Federal Express, and regional carriers are currently
in their system. As this goes to press, a brand new service called DHL Home,
combining DHL’s air logistics with the USPS’ neighborhood delivery reach, is
coming online.
Noticeably absent is UPS. “We’ve invited UPS to participate, and we’d love
to work with them.” says Taylor. UPS has earlier stated that they do not
offer access to third-party software where they lose control of the customer
interaction, so have to date chosen not to be a part of this tool’s vendor
list.
One-click simplicity is critical to RedRoller’s success, and they know it.
It’s got to be easy and fast, or changing is hard to contemplate. Many small
businesses don’t want to use something new, but with fuel surcharges and
fees fluctuating wildly, differences between carriers can have nasty
surprises. “We’re not talking about saving a few cents here,” says Taylor,
“we have studies where savings of 42% were realized.”
To use RedRoller.com, you enter the starting and ending zip code, package
type, and weight – just like any other carrier’s site. The system then goes
out and compares prices, feeling very much like the last time I bought a
plane ticket.
A table comes back for sorting and choosing, with “ship it” buttons next to
listings, which communicates with the carrier and prepares a label. “We are
built upon IBM Websphere, so there is openness to other fulfillment
solutions as they come along. We also support scales and other hardware
already.” continued Taylor. Ecommerce integration is also on the agenda.
Using a system that finds the cheapest route back “home” for a returned item
can save the merchant money at minimal inconvenience to the customer. It
imports QuickBooks and EBay order data directly already.
I shipped a 15 lb package from Lexington to Santa Clara, CA in a test.
Within seconds, RedRoller had offered me a dozen options between carriers.
Sorting to arrive next business day, it gave me costs for USPS, DHL, and
FedEx of $47.20, $70.71, and $83.13, respectively. This took 25 seconds from
zip code to label, the exact same time it took me to get a ship quote from
FedEx alone. Slick.
Still, some small businesses are taking a wait-and-see approach. Mark Parks,
owner of P&S Transmission Parts in Lexington ships heavy packages to
anxiously awaiting customers, relying on UPS for most of his shipments. “We
have invested a lot in UPS. We take orders right up to our pick-up times and
need to be absolutely able to ship to every rural address in the USA in 1-2
days” says Parks. “I’ll keep my eye on this technology, though, because the
other shippers are becoming more competitive.”
As to the future, Mark Taylor of RedRoller speaks of a global marketplace,
“We’ve built our model for point to point global shipping by anyone.
International shipping can be intimidating, but we intend to remove that
fear by simplification, opening the markets to China and beyond. That’s all
I can say right now.”
Scott Clark is a web business consultant in Lexington Kentucky and operates
http://www.sitecreations.com
©Scott Clark - Originally Appeared on Business
Lexington Magazine
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