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When you hear “carrier,” you’d likely think of the big guys: UPS, FedEx, or the USPS. But when we talk about regional carriers, what comes to your mind?
As the name suggests, regional carriers focus on specific regions. In the U.S., however, some of the major regional carriers cover about 85% of the country, making them a key player in ensuring efficient delivery.
Looking to learn more about what regional carriers can do for your business? In this blog, we’ll dive into the advantages and disadvantages of using regional carriers and share some important factors to consider when incorporating them into your shipping strategy.
Regional carriers specialize in specific geographic regions, often serving smaller cities, towns, and rural areas that national carriers might not reach. This localized approach allows them to deliver more efficiently within their service areas. And since they focus on specific areas, they often provide more personalized and flexible services than larger carriers.
Plus, regional carriers excel at handling less-than-truckload (LTL) shipments. By transporting smaller amounts of goods, they offer a cost-effective solution for businesses that don’t require full truckloads.
Another standout quality? Regional carriers have deep local knowledge. They understand the specific needs of the areas they serve, so they can navigate the best routes and provide faster, more flexible delivery services tailored to the region.
More interestingly, regional carriers are shifting their focus from primarily business-to-business (B2B) services to business-to-consumer (B2C). This shift is fueled by the growing demand for faster, more personalized deliveries straight to customers' doorsteps—a trend reshaping the shipping industry!
Trying to decide if regional carriers are right for your shipping strategy? Let’s weigh the pros and cons to help you reach a more informed decision:
Lower shipping rates compared to national carriers: Since regional carriers serve smaller areas, they typically have lower operational costs. Ultimately, it leads to more affordable shipping rates—often even lower than national carriers. This can be a significant advantage, especially for startups or small businesses still working to establish their brand.
Faster delivery: Because regional carriers focus on specific areas, they can get your products to your customers faster. This is particularly helpful if you’re shipping time-sensitive items or products that need to stay fresh, like perishable goods. It also ensures your customers get what they need when they need it!
Personalized or specialized services: Regional carriers are often more flexible and accommodating with requests than larger carriers. This is mainly because of their smaller service areas and the manageable volume of shipments they handle daily, allowing them to offer more tailored attention to your needs.
Reduced risk of delivery delays: Did you know a negative shipping experience causes 40% of consumers to stop buying from a brand entirely? With fewer stops and a focus on specific areas, regional carriers can avoid the bottlenecks that national carriers face. This means a lower chance of delays, especially in well-served areas.
Coverage gaps: Since regional carriers serve specific areas, it’s likely they won’t cover all the locations you need to ship to. This could mean partnering with other carriers for those additional regions, which, of course, adds extra costs to your shipping process.
Technology limitations: Regional carriers may not have the same advanced technology that larger carriers offer. This can lead to less transparency with your shipments and fewer integration options, which could make your logistics more challenging to manage.
Inconsistent services: Not all regional carriers operate at the same standard, and their service quality can vary. They have different processes and resources compared to national carriers, which can impact the consistency and reliability of their deliveries.
Volume challenges: With smaller networks and fleets, they can face challenges like delays or even an inability to meet higher shipping demands—especially during peak periods. This is something to remember if your business experiences fluctuating or high shipping volumes.
Service restrictions: Some regional carriers have limitations on the types of goods they transport or the services they offer, which might not align with your business needs.
Higher costs on certain routes: Some regional carriers may accommodate deliveries outside their service area. But, this typically comes at an additional cost due to the need for extra resources and longer distances.
While it’s helpful to weigh the pros and cons in general, building a solid shipping strategy requires focusing on what truly meets your unique needs. Here are six factors to consider:
Since regional carriers focus on specific areas, the first step is to evaluate how well their coverage aligns with your shipping needs.
Where are your customers located? It’s important to check if the majority of your deliveries fall within their service region. Ensure they cover your primary delivery zones, and identify any potential coverage gaps that might require you to partner with additional carriers.
Ask yourself: How much are you shipping? Do you have a clear picture of your daily, weekly, or monthly shipment volume? Can a regional carrier handle this demand without issues, and would it be cost-efficient for your operations?
Regional carriers are typically an excellent fit for businesses with low to medium shipping volumes. Anything larger may require you to double-check if the carrier can consistently manage the demand. Regional carriers, with their smaller-scale operations, may not always be able to accommodate high-volume operations effectively.
How fast can the carrier deliver to your key regions? What’s their on-time delivery rate? Do they have a solid track record in the areas you need to serve?
This aspect of your logistics is crucial to your business operations. Delivery speed and reliability directly impact customer satisfaction and, ultimately, your bottom line. Take the time to research the carrier thoroughly. Read reviews and check their performance history before committing to ensure they’re the right fit for your needs.
It’s true—regional carriers often provide more affordable rates than national carriers. However, it’s always good to double-check and compare their pricing with other options.
Look out for additional fees, such as surcharges or extra costs for specific routes. Also, consider the carrier's limitations and weigh whether the savings outweigh any restrictions they might have.
Like any service-driven industry, customer service in deliveries is key! While ensuring quality delivery is essential, it’s equally important to have excellent customer support to back it up.
Check if your chosen regional carrier offers responsive and reliable customer support. Whether it’s for questions, concerns, or complaints, strong customer support can save you time, reduce stress, and help prevent frustrated customers.
Before fully committing and signing a contract with a regional carrier, it’s a good idea to test and evaluate their services. Start by sending a few shipments and closely monitor the following:
This will give you a better sense of whether they meet your needs before making a long-term commitment.
If you’re looking to create a shipping strategy that works best for your business, there are plenty of shipping options to consider—including regional carriers. With their lower rates and more personalized services, regional carriers can be a great fit for many businesses.
However, before getting drawn in by these benefits, it’s important to take a close look at your unique shipping needs.
At iDrive Logistics, we’ve been helping businesses of all sizes with their shipping and fulfillment needs for years. With our extensive industry experience and strong relationships with various carriers, we can craft shipping strategies perfectly aligned with our client's goals.
Want to learn more about how we can help you build a smarter distribution network? Connect with our team today!
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