Insights into Building Your Carrier Mix: Strategy, Flexibility, and Performance

Carrier selection in today’s market is far more complex than it was a decade ago. We have seen trends come and go from using a single national carrier to using as many carriers as possible. For many, adding an additional carrier is a substantial financial investment. Choosing incorrectly could be a costly expense with no benefit. There is no one size that fits all when it comes to carrier selection, but there are elements to consider that will determine the right fit for you.

In recent years, national carriers have increasingly used contract language that limits flexibility through volume commitments. These agreements are typically designed to secure the majority of the volume in exchange for the discounted rates- but they often make it difficult to maintain a balanced volume split between the two national carriers. We have also seen where this commitment limits additional volume to only support one or two regional carriers at a maximum. However, flexibility is possible. With the right strategy and focus, it can be achieved during contract discussions.

Technology also plays a role when expanding carrier selection, especially as a more complex rate shop becomes necessary. While there are strategies beyond rate shopping (such as forcing volume to a specific carrier in certain areas), unlocking the full benefits and cost savings of carrier diversification requires intelligent decision-making software. Just as important is the quality of the data feeding the software. Accurate SKU and order data are essential to ensure the rate shop produces reliable results. Closing technology gaps in how inventory and packaged orders are captured and shared should be a top priority, as inaccurate inputs can lead to misaligned carrier choices and unexpected costs.

Carrier performance is another critical factor, as it directly affects the customer experience. While national carriers have invested heavily in their ground networks to enable 2-to-3-day delivery across more areas, we’ve seen a general decline in on-time performance. Regional carriers often provide broader 1-to-2-day ground coverage, but those gains can sometimes be negated by late deliveries. For that reason, understanding the market and selecting the correct carrier is paramount.

So, you have flexibility within your contract and a powerful rate shop, but how far can you take it? The most success is often realized with a targeted strategy and choosing the correct carriers that best fit your package profile and your service needs. Beyond network fit, it’s essential to consider each carrier’s specific capabilities. For example, some may focus primarily on parcels under 10 pounds, while others excel in certain regions or offer specialized service levels. Many shippers find value in pairing a primary national carrier with regionals that can provide these targeted advantages. Through market intelligence and deep industry expertise, Green Mountain is here to offer insights into carrier performance and recommend the right mix of carriers to support your broader shipping strategy.

Need help navigating your carrier strategy? Green Mountain’s Advisory Services team brings the insights, tools, and experience to help you make smarter shipping decisions.