Saving Money on Shipping Costs

By Jeffry M. Finkel The following article was published in the Atlanta Hospital News in August, 2009. As medical practices look to reduce expenses, shipping costs often are overlooked.  While shipping may not be a major expense for most practices, any money saving tips are worth considering - especially in this economy.  This column focuses on shipping small packages - such as patient records, contact lenses, orthotics, dental impressions, and equipment. Until recently, practices typically sent small packages via the United States Postal Service (USPS) or FedEx, UPS, and DHL.  The choice of shipping vendors has narrowed; DHL no longer serves the domestic market.  However, the shipping industry offers an ever increasing – and often confusing - array of choices.  As a physician or practice manager, you do not have time –or likely the patience – to become a shipping expert.   Instead, learning a few shipping fundamentals now may save you money and aggravation.   Rather than comparing shipping options and prices every time you need to ship something, or simply continuing to use your current vendor out of habit, invest some time to compare vendors and select one that meets your shipping needs in terms of these factors:   Required speed of delivery Rates Service Drop-off or pick-up options Speed of Delivery Prices are based partially on how quickly the shipment needs to reach the recipient.  Are you overspending by sending packages faster than they really need to be delivered (e.g., overnight vs. two-day or longer)?  Cut costs dramatically by eliminating as much overnight shipping as possible. Price  Prices can vary dramatically among vendors.  Vendors base prices on multiple factors including weight, package dimensions, distance, delivery speed, discounts, and fuel surcharges.  No two vendors charge the same rate for the same service.  As evidence, in December, 2008 Consumer Reports published the results of its shipping study in which it found a 281% price difference among FedEx, UPS, and the USPS for shipping a book via next day delivery within locations in N.Y. and between N.Y. and Oregon.  All packages were delivered the next day within hours of one another.  The USPS was the cheapest overall.  It pays to compare prices. Service Managing your shipping needs online can save your practice time and money.  Available services may include: Paying online Printing labels using your PC and printer Maintaining a recipient address book Tracking shipments Ordering shipping supplies online Generating shipping reports Obtaining rates online Free shipping boxes, envelopes, and tape Drop-off or Pick-up Options Options for getting your package to your shipper vary among vendors.   Vendors differ in the number of and type of drop-off locations.  USPS packages may be dropped off at post offices and authorized shippers or put in a drop box if under 13 ounces.  UPS packages may be dropped off at UPS centers or drop boxes, UPS Stores, or authorized shippers (e.g., Office Depot).  FedEx packages may be dropped off at FedEx offices or drop boxes, at Kinko’s, or authorized shippers.  Vendors impose varying size and weight limitations for their drop boxes and manned locations. All vendors will pick up at your office, however, options vary.  Some will pick up automatically everyday; others upon request.  Some charge a fee.  Advantages of Selecting One Primary Vendor Using just one main vendor - especially if you have multiple locations – may increase your eligibility for volume discounts as well as being assigned a personal account representative.  Additional Tips Use the slowest practical delivery speed Use one shipper as much as possible to qualify for volume discounts Take advantage of association discounts Buy only as much insurance as necessary Rather than shipping weighty documents, email or fax them, or burn them onto a CD and mail for a fraction of the cost of a package Take advantage of other discounts (e.g., 5% FedEx discount for Open credit card holders) Use the smallest possible box; avoid odd shaped boxes if you can Consider the USPS’s new Priority Mail Flat Rate service.  You can mail up to 70 pounds at a flat rate using special USPS boxes. Ship media (e.g., books, recordings, CDs) at the cheaper media rate Make sure your scale is accurate to avoid purchasing excessive postage Save time and gas by having packages picked up by the vendor Take action NOW to cut shipping costs! Visit http://www.OverheadReductionServices.com for more money-saving tips.  Jeffry Finkel is the President and owner of Overhead Reduction Services.  Jeff may be reached at (404) 995-9112, (877) 990-8746, or Jeff@OverheadReductionServices.com.