The IBM i (AS/400) Guide to Handling Increased Parcel Throughput

Learn how IBM i (AS/400) Power users can streamline their shipping operations and increase their parcel throughput with ease

Up and running since 1988, IBM i (AS/400) operating systems (now Power Systems), are a cornerstone of many businesses’ shipping operations. In fact, the AS/400 platform is used in over 100,000 companies including Fortune 500 companies that use IBM i Power systems. As these systems have stood the test of time, their reliability, scalability, and durability have remained strong, which is why they are still relevant in today’s modern business environments. IBM i (AS/400) Power systems act as a central hub for various business functions, including those related to shipping and distribution. For those in the parcel shipping industry, these systems play a critical role in managing the various aspects of daily shipping operations.


E-commerce and customer expectations have surged over the last few years. This has caused the pressure for shippers to handle increased parcel throughput to grow in tandem. As businesses find themselves grappling with the challenge of managing an increased volume of packages, they must find an efficient solution to help them navigate this quickly changing environment to remain competitive. For shippers relying on IBM i (AS/400) Power systems, there are strategies and solutions that can empower your business in tackling the ever-growing demand for efficiency. Let’s start by looking at potential challenges you may face if you fail to adapt your strategy.

The Challenges of Handling Increased Parcel Throughput

While increasing your business’s parcel throughput can point to many positives, such as business growth, improved customer satisfaction, and competitive advantage, it is not always an easy undertaking. A quick spike in orders can stretch a company’s staff and resources thin without proper planning. Operational bottlenecks and a slow down or halt in tasks due to inefficient processes can result in order processing delays, late shipments, and unfulfilled customer expectations.


As mentioned previously, there has been a substantial increase in consumer demand and expectations surrounding the delivery of their products and customer service. Because of this, there is a heavy pressure on shippers to ensure they meet order fulfillment timelines and delivery promise dates. This requires businesses to adapt their shipping operations quickly to meet high order volumes and keep their customers satisfied.


As a reliable system for over 35 years, it is no wonder that the IBM i (AS/400) Power system is one of the world’s “most popular business computing systems”. However, because it has been around for so long, it is considered a legacy system by many – mainly because of other, newer solutions that have been released since. In fact, many companies with IBM i (AS/400) Power systems still have homegrown shipping solutions that may not be as adaptable or efficient, making it hard to keep up with increased throughput demands. Because of this, it is crucial for shippers to find scalable and efficient technologies that can seamlessly grow with their operations and provide the adaptability they need to keep up with such a dynamic parcel shipping landscape.

Strategies to Handle Increased Parcel Throughput Like a Pro

While the challenges of managing increased parcel throughput are evident, there are several strategies for shippers utilizing IBM i (AS/400) Power systems to empower them to tackle these obstacles effectively.

Automating Order Processing

Order processing automation is crucial for businesses experiencing an increase in demand. Implementing the automation of tasks such as order entry, address validation, and order routing can minimize the need for manual data input. Overall, this significantly reduces the possibility of human error and allows businesses to handle increased parcel throughput with ease. When integrated into IBM i (AS/400) Power systems, order processing automation substantially improves the precision and seamlessness of order fulfillment, delivering a streamlined processing of orders and efficient dispatch of shipments.

Rate Shopping

Rate shopping is an invaluable strategy for shippers utilizing IBM i (AS/400) Power systems to efficiently handle the challenges that come with increased parcel throughput. Rate shopping technology gives shippers the ability to compare and select the best carriers and rates for each shipment, allowing them the opportunity to stay cost-effective for both their business and their customers. Incorporating rate shopping into the shipping process also guarantees a reduction of overspending on shipping costs while ensuring users can make well-informed decisions in real time, guarantee timely deliveries, and remain competitive in a rapidly evolving landscape.

Real-Time Tracking for Customers

With the high expectations consumers hold today, real-time tracking and visibility to their orders is extremely important. Shippers can utilize their technology to provide their customers with tracking information, providing them insight into every step in the shipping process of their order. Notifications of early, on-time, or shipping delays make deliveries more convenient for consumers, as well as builds trust with the business, enhancing the overall customer experience. IBM i (AS/400) Power users can achieve this through integration with shipping software, like a multi-carrier shipping software solution, ensuring real-time tracking and visibility for their customers.

Dimensional Weighing

Incorporating dimensional weighing technology can significantly boost your company’s parcel throughput. This strategy is critical for IBM i (AS/400) Power users to integrate in order to get accurate rate calculation and cost-efficient shipping. It ensures accurate pricing based on the dimension and weight of parcels, minimizing discrepancies between manifest weight and actual weight. Not only does this technology lower shipping costs and allows businesses to handle increased parcel throughput, but it also results in substantial labor savings. [Learn more about dimensional weight pricing and unexpected shipping costs.]


The list of strategies for shippers using IBM i (AS/400) Power systems to handle increased parcel throughput goes on, but wouldn’t it be nice if there was one comprehensive platform that combined all of these strategies into one helpful solution?

Introducing: Varsity Logistics’ Multi-Carrier Shipping Software Solution

Varsity Logistics has stood as a top-tier supplier of multi-carrier shipping software for companies in need of parcel shipping capabilities for over a decade. Designed exclusively for IBM i (AS/400) Power users, our comprehensive parcel shipping suite is seamlessly integrated, hosting various top tier supply chain execution modules engineered to handle even the most intricate small package shipping.


Varsity’s ShipSoft-Parcel seamlessly integrates with ERP, legacy, and Order Entry systems running on IBM i (iSeries, Power, AS/400) systems. It delivers a unified and automated shipping solution that ultimately eliminates manual data entry and significantly reduces shipping costs for your business. This solution incorporates several technologies to apply the strategies for businesses to handle increased parcel throughput discussed above.


Within Varsity’s ShipSoft-Parcel solution, ShipSelect automates the carrier selection process based on factors such as transit time, cost, and carrier service. It chooses the optimal carrier for every shipment, following business requirements and routing guides. ShipOptimizer technology finds the ideal containerization process and accurately predicts shipping costs before processing the order. SpeedWeigh allows shippers to automatically retrieve the package weight from the scale which is pulled into the system at the time the order number is scanned. This eliminates the need for an additional get-weight barcode scan or manual entry, ultimately saving your business processing time and money.


Varsity’s multi-carrier shipping solution is a unified platform that encompasses automation, order processing, dimensional weighing, real-time tracking, and more. This all-in-one solution optimizes operations, improves efficiency, and guarantees the effective and successful management of increased parcel throughput for those operating on IBM i (iSeries, Power, AS/400) systems. To learn more about Varsity’s Parcel shipping solution, the additional execution modules, and how our software can transform your shipping operations, contact our team of shipping experts or request a demo.

7 Benefits of Carrier Diversification

Learn how carrier diversification reduces costs, improves customer satisfaction, and more.

Everyone’s familiar with the saying, “Don’t put all your eggs in one basket”. The expression is a warning against concentrating all your resources or efforts into one place or thing. When relying too heavily on a single option, you potentially put everything at risk in the event of a crisis. Although this time-worn phrase dates back to the 1600’s or earlier, it still remains applicable to an abundance of situations, including your shipping strategy.

An effective way to apply this advice to your shipping strategy is by diversifying your carrier mix. This provides shippers with carrier options in the event of a supply chain disruption. The saying became especially relevant in the logistics world after the pandemic struck, causing a spike in e-commerce, disruptions in carrier networks, shifting consumer behavior, and more.

7 Reasons to Implement a Carrier Diversification Strategy

Post pandemic, in today’s rapidly evolving shipping landscape, supply chain innovation and adaptability are essential. Still, amidst times of changing consumer expectations, dynamic market conditions, labor unrest and other unforeseen circumstances, businesses are realizing that carrier diversification is a key driver of success. If you are looking to inject flexibility into your shipping processes, mitigate risks, enhance service coverage, and unlock new opportunities, then carrier diversification is a strategy to put in place. Here are seven ways having more than one major carrier can benefit your business:

1. Carrier Diversification Reduces Risk

Relying on a single carrier can pose risks such as service disruptions due to weather, labor strikes, or unforeseen circumstances. By diversifying carriers, you reduce the risk of shipping disruptions having a devastating effect on your business by distributing shipping volumes across several providers. Additionally, with an advanced multi-carrier shipping solution, if one carrier experiences an issue, you can seamlessly switch to an alternative carrier. This redundancy helps to continue the flow of goods, ensure timely delivery and business continuity, and minimize the impact on your shipping operations.

2. Carrier Diversification Increases Flexibility and Scalability

By integrating multiple carriers into your shipping software, you gain the flexibility and scalability to adapt to evolving market conditions, shifting consumer preferences, and seasonal demands. It allows you to find the best carrier suitable for specific needs on a shipment-to-shipment basis, based on factors such as cost, transit time, destination, and service level. This agility allows you to optimize your shipping operations and handle fluctuations in consumer demands efficiently.

3. Carrier Diversification Uncovers Competitive Shipping Rates

Competitive Shipping Rates: Carrier diversification enables you to compare shipping rates across multiple providers. Each carrier may offer different pricing structures, discounts, or negotiated rates based on several favors like your shipping volume, destination, or time in transit. By having options, you can identify the most cost-effective shipping solutions for your business, potentially reducing shipping expenses and passing along those savings to retailers as well.

4. Carrier Diversification Improves Geographic Coverage

Incorporating different carriers into your shipping software allows businesses access to a broader network of delivery routes and service areas. Individual carriers typically have strengths in certain regions whether that be local, regional, or international. By diversifying carriers, you can expand your shipping reach to more areas and access markets that might be underserved by a single carrier. This allows you to leverage your established expertise in different geographic locations while also growing your business. Carrier diversification helps you reach a wider customer base and opens the door to entering new markets with confidence.

5. Carrier Diversification Improves Service Levels

Different carriers have their strengths and weaknesses, such as specific routes, delivery networks, or specialized services. By diversifying carriers, you can fill the gaps in areas where some carriers might be as efficient. This allows you to tap into each carrier’s unique strengths and select the option that best aligns with your specific shipping requirements. This can result in faster delivery times, higher customer satisfaction, and overall improved service levels.

6. Carrier Diversification Empowers Negotiation

When you have multiple carriers integrated into your shipping software, it strengthens your position during carrier negotiations. You can leverage competition among carriers to compare rates or service capabilities. Carriers may also be more likely to offer you discounts, customized solutions, or other attractive incentives to secure or maintain your business. Overall, negotiation allows businesses to vouch for more favorable pricing, contractual agreements, and value-added services.

7. Carrier Diversification Improves Customer Satisfaction

Every business has the goal to provide an exceptional customer experience- after all, it’s what builds brand loyalty and customer trust. By expanding your carrier library, you increase customization abilities, flexibility, and other great options for customers. It also allows for the selection of carriers based on factors like reliability, delivery speed, and geographic range that best aligns with your customer’s needs. With higher consumer expectations surrounding deliveries today, customers appreciate carriers who can get them their goods in a safe and timely manner.

How Carrier Diversification Facilitates Growth

Overall, diversifying your carrier mix offers a variety of benefits for businesses navigating the ever-evolving world of supply chain and logistics. This strategy enables greater flexibility, improved service levels, cost optimization, risk mitigation, expanded market reach, negotiation power, and increased customer satisfaction. Integrating multiple carriers provides operational redundancy, allowing businesses backup options in the event of disruptions and other unforeseen circumstances. Additionally, carrier diversification creates the opportunity for businesses to expand their reach, enter new markets, or those that may be under serviced. Embracing a carrier diversification strategy is imperative and empowers businesses to construct resilient, streamlined, and customer-focused operations in a constantly evolving marketplace.

Need help getting started with a carrier diversification strategy or shipping software? Contact our experts today to discover how Varsity Logistics can improve the way your business does shipping.

Zone Skipping: Will it Work For Your Business?

Learn how zone skipping can save money on shipping costs while improving customer experience.

Logistics operators looking to reduce transportation costs and improve transit time might want to consider Zone Skipping, a logistics technique that consolidates individual packages and ships them directly to a parcel carrier’s induction hub that’s closer in proximity to the final destination points of the consolidated packages.

How does Zone Skipping work?

Let’s say you’re shipping 5,000 parcels from Oklahoma City to Detroit at $10 each in shipping costs, which means a grand total of $50,000. 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. So, if you add the $5,000 flat rate shipment with the $7 per parcel for local delivery, the total shipping will equal $40,000 — A $10,000 savings compared to using the parcel carrier for shipping the parcels individually.

How can Zone Skipping benefit my business?

Here are 4 ways that that zone skipping can improve the way you ship parcel.

Cost Savings

As explained above, by relying on local delivery for the final zone, operators will cut costs which they then can pass onto their customers. (The savings come from eliminating multiple sort and transfer points.) The saving will not just save your company significant money on shipping, but it will earn you customer loyalty based on a faster delivery time.

Faster Transit Times

Zone Skipping means parcels no longer have to crisscross the country to multiple sorting facilities before they reach where they need to go. Now parcels will go directly to the destination via local carriers. The faster delivery times could allow you more time to accumulate additional package volume when building your zone skipping loads.

Greater E-commerce Capabilities

As e-commerce continue to dominate online retail, operations that get parcels directly to consumers without hassle will be leading the pack. Consumers now have increased expectations for how long an order will show up on their doorstep. Zone Skipping is tailor-made for meeting those immediate needs.

Fewer chances for damaged packages

Another reason why Zone Skipping is good for customer loyalty is because it reduces product damages. This is because it eliminates the number of sorting and consolidation steps performed by the parcel carrier. The fewer hands touching the packages, the greater the chances it won’t be dropped, dented, or damaged.

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

Zone Skipping is only cost-effective if you routinely have a large number of parcels going to the same area. How many orders are headed to the same region? How many steps are in your shipping process? Remember, the more steps reduced, the greater the cost savings to your business. Having a system that allows you to turn zone skipping on/off based on current volume is ideal.

Evaluate your internal infrastructure

You’ll need software that can handle the increased capacity requirements that result from Zone Skipping. Because of volume, Zone Skipping may overly burden a more traditional system, which could reduce efficiency and increase labor costs. So make sure your software is still capable of delivering ROI within this new process.

Open a dialogue with your local parcel carriers

These are the people you’ll rely on to make Zone Skipping a success. Partnering with local carriers to design a Zone Skipping strategy is critical in making sure your plan will work. While a reduction in sorting/shipping on your part ultimately reduces the amount they can charge you, good parcel carriers will realize that the increased volume is a significant win on their end.

Zone Skipping with Varsity Shipping Software

Zone Skipping is an effective way to reduce shipping costs and improve customer experience. Discover all the ways Varsity multi-carrier shipping software can improve your parcel processes by scheduling a demo with one of our shipping specialists today.