4 Ways Zone Skipping Can Optimize Your Shipping Strategy

Learn how Zone Skipping can lower costs, decrease transit times, and boost customer satisfaction

In a supply chain and logistics environment where economic uncertainty is constant, businesses are always on the lookout for opportunities to reduce transportation costs without sacrificing transit times and customer experience. As e-commerce has continued to thrive by yielding high order volumes, the need for innovative shipping strategies has become more critical than ever.


Many will be relieved to know a logistics approach that offers a solution to both high shipping costs and extended delivery times does indeed exist. This approach is referred to as Zone Skipping, a logistics technique that consolidates individual packages and ships them directly to a parcel carrier’s distribution center closer in proximity to the final destination points of the consolidated packages. From there, a regional carrier delivers the package to the customer’s doorstep.


This technique is called Zone Skipping because consolidating individual shipments and transporting them in bulk to get them closer to their end delivery location allows the packages to bypass intermediate distribution centers, or zones.

How does Zone Skipping work?

Unlike traditional shipping methods that involve multiple sorting and transfer points, Zone Skipping minimizes the extensive routing of parcels across the country before reaching their end destination. Instead, the approach leverages local carriers for the final zone. The main purpose is to consolidate parcels headed for the same target location, allowing them to be shipped together in bulk. This process eliminates unnecessary handling and sorting, resulting in faster transit times and significant cost savings.

4 Ways Zone Skipping Can Benefit Your Business

Now that we’ve laid the foundation for understanding how Zone Skipping works, it is important to explore how this innovative shipping strategy can positively impact your business.

1. Cost Savings

Zone Skipping can bring substantial cost savings for businesses by optimizing the final stages of the shipping journey. Rather than relying solely on individual parcel carriers for end-to-end delivery, Zone Skipping utilizes local delivery services to make final mile deliveries. This strategy eliminates the need for multiple sorting and transfer points along the shipping route, significantly reducing costs associated with shipping packages. This cost efficiency allows businesses to allocate budget elsewhere, bettering the business’s finances and operations.


For example, if you were shipping 5,000 parcels from Oklahoma City to Detroit at $10 each in shipping costs, you would incur a grand total of $50,000 in shipping spend. The flat rate, however, is $5,000 if they all arrive in a truck. From there, shipping the individual parcels from the Detroit sorting facility will cost $7 per parcel. If you add the $5,000 flat rate shipment with the $7 per parcel for local delivery, the total shipping will equal $40,000. That’s $10,000 in savings compared to using the parcel carrier for shipping the parcels individually.

5,000 x $10 = $50,000

(5,000 x $7) + $5,000 = $40,000

$50,000 – $40,000 = $10,000 in Savings!

2. Faster Transit Times

Zone Skipping also revolutionizes the speed and efficiency of parcel deliveries, significantly reducing transit times. Traditional shipping methods involve excessive back-and-forth traveling through multiple sorting facilities across the country throughout the duration of transit. However, this logistics technique utilizes local carriers to minimize unnecessary detours and ensures a direct route to the end customer. Not only does this eliminate transit delays, but it shines a spotlight on businesses offering reliable service. It is no secret that today, especially, faster delivery times translate to higher customer satisfaction.

3. Greater E-commerce Capabilities

As the e-commerce landscape continues to evolve, customer expectations grow right along with it. This means meeting the growing demand for seamless and hassle-free deliveries is crucial for businesses. Zone Skipping presents an ideal strategy for businesses to meet these expectations by providing faster and more reliable shipping options to their customers. With the ability to directly route a package to the customer, avoiding transit delays and sorting, it meets the immediate needs of today’s online shoppers. Not only will this boost your business’s customer service, leading directly to happier customers and increased customer loyalty, but it will help your business excel in the competitive e-commerce market and ultimately drive profits.

4. Fewer Chances for Damaged Packages

Not only does Zone Skipping save your business time and money when it comes to shipping, it also reduces the risk of damaged packages. As we know by now, traditional shipping methods can send packages through multiple sorting and distribution centers, exposing packages to more hands and a higher likelihood of becoming damaged. Zone Skipping decreases the opportunity of something bad happening to packages, such as being dropped or dented, by eliminating unnecessary touchpoints in the shipping process. This helps ensure that customers receive their orders in pristine condition, improving the overall customer experience and building trust with the shipping process and your business.

What Do I Need to Implement Zone Skipping?

Here are 3 things to do before you implement a zone skipping strategy.

Evaluate the Areas You Serve

Before implementing a Zone Skipping strategy, it’s crucial to evaluate the regions you routinely serve. This strategy is most cost-effective for businesses that consistently have a substantial volume of parcels going to the same area. If you are considering utilizing Zone Skipping, you should consider the frequency of orders that are headed to the same region and examine how many steps are in your current shipping process. Remember, reducing the steps in your shipping process creates a more streamlined experience as well as increases cost savings to your business. Ideally, you should have a shipping system that allows you to turn zone skipping on/off based on current volume to ensure optimal efficiency and savings.

Evaluate your Internal Infrastructure

Before jumping into Zone Skipping, evaluate your internal infrastructure to ensure a seamless implementation. You will need software that is equipped to seamlessly handle increased capacity requirements. The integration of a robust solution, like multi-carrier shipping software (MCSS), becomes crucial in this context. Advanced shipping solutions are designed to handle complex shipping scenarios and streamline parcel logistics, ensuring your system remains agile and efficient, even with the increased demands of Zone Skipping. Because of volume, Zone Skipping may overly burden a more traditional system, which could reduce efficiency and increase labor costs. By leveraging the capabilities of multi-carrier shipping software, business will be able to effectively utilize Zone Skipping to deliver ROI and operational efficiency.

Open a Dialogue with your Local Parcel Carriers

It’s important to foster a collaborative partnership with your local parcel carriers as these are the people you’ll rely on to make Zone Skipping a successful strategy. Communication with these carriers is vital to smooth operations and an effective plan. While Zone Skipping might reduce the sorting and shipping workload on your part, transparent communication with your local carriers will help them recognize the substantial benefits of increased volume. A collaborative approach to this strategy ensures benefits for both your business and the carriers involved.

Zone Skipping with Varsity Shipping Software

Zone Skipping is an effective way to reduce shipping costs and improve customer experience. The industry leading multi-carrier shipping software for IBM i (AS/400) Power systems users from Varsity Logistics offers the ideal solution for flexibility and reliability when it comes to additional cost savings and promoting a positive customer experience.


Read our How it Works Brochure to learn more about Varsity’s software integration and comprehensive set of features.

To discover all the ways Varsity’s multi-carrier shipping software can improve your parcel shipping processes, contact our shipping experts or schedule a demo.

What to Know Before You Invest: 7 Key Questions About Shipping Software

Shipping software is an important supply chain investment – do you have all the answers?

Rising transportation costs, labor concerns, and ever-changing customer demands for faster and free deliveries make shipping one of the most critical and costly areas of the supply chain. Because of this, the role of shipping software to gain efficiency and stay competitive has become increasingly pivotal. From optimizing resource allocation to ensuring consistent customer satisfaction, the right shipping software can make a significant impact on the cost savings you find as well as the overall success of your business. 

This leads us to the question: How do you ensure that your shipping software is a good fit? Before embarking on the journey of selecting the perfect shipping software solution, it is important to take a step back and consider your answers to a series of valuable questions. We’re sharing seven questions you should ask before deciding if a multi-carrier shipping software (MCSS) solution makes sense for your IBM i/AS400 system.

7 Questions to Ask Yourself Before Buying Shipping Software

Shipping software is an important supply chain investment. Here are the top things to consider before choosing a multi-carrier shipping software solution for your business.

1. Are we doing too many things manually?

If your business is using separate, carrier-supplied systems and website searches to find the best shipping rates, you can likely add automations to your process with a new shipping solution. By fully assessing the manual effort required, you can determine the potential cost savings a MCSS solution could provide. Shipping software improves accuracy and reduces errors, avoiding costly consequences that can arise from manual tasks.

2. Are our shipping costs accurate?

It is important to audit your shipping invoices to ensure they match your contract rates, so you avoid overpaying. Cost auditing can also reveal inefficiencies and bottlenecks in your current shipping operations, allowing you to pinpoint areas where redundant tasks may be causing unnecessary costs. When you identify the areas of cost savings, you can better allocate your budget for a more efficient operation.

3. Do we have good visibility of shipments once they leave our facility?

Now more than ever, customers have high expectations for shippers to meet estimated delivery dates and provide updates throughout the shipping process. Top-tier MCSS solutions integrate seamlessly with your carriers and have options to allow real-time tracking and status updates for your customers. MCSS visibility also helps reduce risks, like supply chain delays or disruptions, which can prevent substantial financial losses for your company.

4. Do we have an efficient number of shipping staff?

Evaluating your labor force can help you allocate your resources effectively, especially in today’s labor-constrained warehouses. Industry-leading MCSS are single, fully integrated systems that seamlessly connect with your existing carriers and ERP or WMS systems, replacing inefficient carrier-provided systems. Using advanced shipping solutions can save your team time and effort, allowing them to dedicate it elsewhere. This results in improved productivity and a competitive advantage.

5. Can we scale up as needed?

Scalable shipping software integrates seamlessly with your existing software systems, ensuring that as your business scales, everything scales together cohesively. MCSS gives you the ability to automate carrier selection to find the best rates for your customer’s needs from the start, and as your business grows, you can add modules or features such as auditing, pick/pack integration, and custom filings. Investing in scalable shipping software is also a way of future-proofing your business operations, avoiding costly frequent software upgrades and keeping up with shifts in customer expectations.

6. How accessible is our shipping data?

The ability to analyze and evaluate transactional and historical data is essential for operational success. Choosing shipping software that allows you to easily view and/or export your data is the key to monitoring day-to-day shipping operations, ensuring accurate order processing and optimal resource allocation. Historical data gives great insight to performance evaluation and customer behavior, leading to data-driven strategies for future success and effective cost management.

7. How quickly will our investment pay off?

Estimating the time to achieve ROI helps align your investment with your financial goals and business strategy. This allows your company to effectively plan and allocate resources. Leading shipping software solutions, like Varsity Logistics, see their customers recoup 5-15% in overcharges and realize an ROI in just a few months. The combination of benefits that MCSS provides, like streamlined processes, automated rate shopping, batch processing, and reduced shipping errors, lead to immediate bottom line cost savings for your business.

Learn more about Varsity Logistics multi-carrier shipping software for IBM i/AS400 systems

Interested in learning more about the long term cost savings and increased operational efficiency with multi-carrier shipping software? Varsity Logistics offers a robust, industry-leading freight and parcel shipping solution for IBM i/AS400 systems that integrate seamlessly into your existing business infrastructure.

Contact our team of shipping professionals to discover how Varsity Logistics can step-up your shipping operations and revolutionize your supply chain game.

5 Ways a TMS Will Help You Weather Market Irregularities

The right transportation management software will help you pivot quickly to keep your logistics program working smoothly

A perfect storm of weather events, regulatory restrictions, and economic unrest can wreak havoc on the transportation market in getting goods to market.

To adjust, here are five ways using a TMS can help in making you adjust early to sudden market conditions.

How TMS keeps your shipments moving

Here are five ways TMS can help you adapt to evolving market conditions.

Capacity

The main advantage of a TMS is that it gives you unlimited access to truckload capacity. This will not only help get your goods out the door, it’ll help you find the optimal balance of price and service to fit your needs.

Flexibility

The most valued TMS providers are flexible, giving you the ability to react quickly to changes in the network. The process of setting up new lanes, shifting volume, or finding capacity in markets can be intense, but TMS software is designed to make these changes as seamless as possible. The same is true if you want to scale space, labor, and transportation according to inventory changes at your warehouse.

Technology

A TMS gives you all-in-one capability for your shipment needs by providing both real-time visibility of shipments in transit and analytics to deliver long-term efficiencies. You’ll suddenly have full control of every aspect of your shipping operation.

Network

The best TMS providers give you access to a vast resource network that can help your supply chain expand quickly and efficiently. Now, due to their relationships, you’ll have new opportunities for volume discounts, lower overhead costs, and timelier service.

Expertise

A good TMS provider knows the marketplace of shippers, from small to large. Which means they can find a solution to any challenge. They have a greater knowledge of compliance programs and access to online scheduling tools of every major retailer. Which means you’ll avoid the costly fines that come with noncompliance. And don’t forget that your software vendor is also on top of market conditions and trends, so you’ll get up-to-date business intelligence on things like general rate increases (GRIs) to help you make the right decisions to mitigate risk.

Discover how Varsity Logistics can help

Varsity Logistics can help you navigate ever-changing transportation market challenges. Visit our Request a Demo page to connect with a Varsity Shipping Specialist to learn more today.

6 Ways Warehouses Can Save Money By Going Green

Learn how making sustainability a priority can deliver more than just green results.

The warehouse and logistics industries are not immune to the potential savings generated from “going green.” Eco-friendly warehousing may require upfront dollars, but some strategies, like greater recycling, are free. Besides benefiting the environment, the objective is long-term cost savings. Warehouses that embrace the following six practices will discover efficiencies in their operation that are sustainable over time.

Tips for Eco-Friendly Warehouse Improvements

Here are 6 helpful tips for implementing green improvements in your warehouse.

Sustainable Lighting

LED lighting solutions, as well as other advanced lighting technologies, can cut as much as 80 percent from the bottom line, according to Inbound Logistics. Retrofitting your warehouse with LEDs will have upfront costs but considering that they cost much less to operate and the time for replacement is limited, you’ll save both energy and labor costs.

Smarter Identification

Multi-level warehouse rack labels, long-range retroreflective signs, and a greater volume of hanging signage speeds up picking for your workers, which helps cut down labor costs while speeding up order fulfillment.

Smarter Facility Layouts

Using data gained through asset tracking, warehouses can reduce labor and energy costs by redesigning their layouts so the fastest-moving inventory is more accessible than inventory that tends to sit the longest. Warehouses can also make greater use of vertical space. Taking a new look at their space could lead to efficiencies that you hadn’t even considered before.

Explore Energy Management

How efficient are your heating and cooling systems? What about how water is distributed throughout your facility? Are you using low-flow toilets and faucets? It might be worth it to check out energy management systems that integrate the timers, thermostats, and gauges that control the electricity, gas, heat, and water. The right eco-friendly system will help lower overall usage, which leads to savings costs.

Purchase Energy Efficient Equipment

Now that automation is becoming more commonplace in the warehouse and logistics space, what about other equipment that your operations relies on. For example, have you considered electric forklifts that operate without the need for gas and oil? What about other battery- or electric-powered vehicles? According to PBD Worldwide, electric forklifts improve worker health (no toxic fumes to inhale) and result in an estimated savings of $26,000 in propane over five years!

Recycle

This is the low-hanging fruit of going green. Warehouses need to implement recycling initiatives that they can ultimately profit from. What can be recycled? Nearly everything. That includes pallets, crates, totes, cardboard, paper, aluminum, and plastics. Waste can be minimized by reusing packaging materials. But no matter the volume of waste you produce, someone will pay you for taking it off your hands.

How Shipping Software Contributes to Going Green

Shipping software automates shipping, streamlining processes that were once riddled with manual tasks. By automating your parcel shipping process, you’ll remove issues like shipping to invalid addresses, returned shipments, missing shipping dates and more. Every package shipped incorrectly adds time-in-transit, reprinting labels and shipping packages multiple times.

Discover other ways Varsity shipping software can improve your parcel shipping processes by scheduling a demo with one of our shipping specialists today.

3PLs Booming from Stronger Economy, E-Commerce, Space Shortage

A new report reveals the increasingly important role 3PLs are playing in shipping

The third-party logistics (3PL) market is going strong according to a June 2018 report released by Armstrong & Associates, a market research firm located in Milwaukee.

About This 3PL Report

The report found that 2017 net revenues in the U.S. rose to $77.1 billion in 2017, a 5% increase from the previous year. Gross revenues reached $184.3 million, a nearly 11% increase. The net revenue increase repeats a year-to-year pattern of single-digit growth.

Armstrong & Associates Chairman Dick Armstrong said in a statement that 2018 net revenue will likely reach 5%, with gross revenue closer to 10%. “It should be a good year overall,” he said.

The segment largely responsible for the steady growth is Dedicated Contract Carriage (DCC) revenue, which increased 10% in 2017, above its steady annual growth rate of 7% since 1995. Increasing rates and limited truck capacity has helped maintain growth in the DCC segment.

Other segments that were strong last were included:

  • Domestic Transportation Management (DTM). Gross revenues spiked 16% to $72 billion; net revenues were up 6% to $11 billion.
  • International Transportation Management (ITM). Gross revenues climbed nearly 11% due to tight air freight capacity and the growth in global e-commerce. Net revenues increased 4%. 
  • Value-added Warehousing and Distribution (VAWD). Both gross revenue and net revenue were each up nearly 3% due to tight warehouse capacity across the U.S.

Varsity Logistics integrates with IBM i (AS/400) systems to deliver powerful shipping capabilities to 3PLs and beyond. Request a demo of Varsity Logistics multi-carrier shipping software to learn more today.