Dim factors importance

DIM factor: its importance in carrier contract negotiations

by BlogCost Optimization

Did you ever pay more for a lightweight package than a heavy one?

One of the reasons for the hike in shipping prices is the DIM factor. The size and shape of packages occupy space in a shipping carrier’s vehicle. Many shipping carriers calculate the shipping rates based on the dimensional weight due to scarce spaces on their trucks. Thus, the dimensions of a package are essential during shipments. So, what are dimensional weight and DIM factor- these phrases are explained in this article. Also, we discuss the implication of the DIM factor in carrier contract negotiations.

DIM factor

It is a number set by shipping carriers for the shipment volume per unit of weight. It is the DIM divisor. The calculation of the DIM factor is on the maximum cubic inches per pound of a parcel. It is a factor in calculating the shipping price. Every shipping carrier has its DIM factor, which can change annually.

The DIM factor varies depending on the service offered by the shipping carriers. In addition, the mode of transportation affects the DIM factor value. Further, for some shipping carriers, international shipments have a different DIM factor from domestic shipments. For instance, UPS DIM factor for UPS® Air Freight Premium Direct is 139, and UPS Air Freight Direct is 166. When negotiating a contract with shipping carriers, businesses negotiate for a lower (its higher) DIM factor to reduce shipping costs.

What is Dimensional weight?

The dimensional weight of packages is vital for calculating shipping costs. The dimensions of a package occupy space when compared to its actual weight. For example, a lightweight clothes box may occupy more space than a compact steel box. A mathematical formula helps in calculating the dimensional weight.

Dimensional weight = length x width x height of the box/ DIM factor

If the DIM factor is high, the dimensional weight is low. Dimensional weight depends on the weight and size of the package. Hence, businesses must optimize their packaging options during shipping. If the dimensional weight exceeds the actual weight, shipping carriers may charge based on the dimensional weight. Further, to make better decisions, shippers should also know the difference between the Actual and billable weight to save money.

Actual Weight and Billable Weight

Actual weight is the package weight on a weighing scale. Irrespective of the size and volume, actual weight is the physical weight used by shipping carriers while calculating the shipping costs.

Billable weight is the weight that shipping carriers put on the shipping bills. Its calculation by the parcel carriers involves comparing the DIM weight and the actual weight. The parcel carriers use the higher value of the two weights. Billable weight varies for each parcel carrier and service.

Impact of the DIM factor on shipping costs

Shippers review their packaging strategies when shipping lightweight, large boxes. Different packaging designs and materials will give a better customer experience and save money with minimal changes. Customized boxes or poly mailers help companies reduce their shipping expenses. Advanced cartonization and streamlining the packaging processes can lower shipping costs.

Partnering with shipping experts allows shippers to ship their packages efficiently and lower shipping costs. 3PLs can also help negotiate lower shipping rates even for packages with higher DIM weights. Further, FedEx has packaging design consultants that help shippers to pack efficiently and prevent damage to goods.

Audintel advises its clients to negotiate on the DIM factor when signing contracts with shipping carriers.

DIM factor in Carrier contract negotiations

During carrier contract negotiations, shipping carriers have their shipping analytics to understand a company’s shipping profile. And shippers require to have detailed shipping data at their fingertips when negotiating with shipping carriers. Though shipping carriers have standard DIM factors for services, shippers can negotiate for lower DIM charges. Businesses can also ask for volume-based pricing of packages, which may be cheaper to send small parcels of less than 20 pounds. Further, shippers need to seek dimensional weight waivers or bargain for discounts on the Dimensional weight of packages.

To get the best out of the contract negotiations with FedEx or UPS, partnering with Audintel gives information about ways to negotiate the DIM charges. We help in optimizing the Dimensional weight of packages and lower shipping costs. Our team keeps track of DIM factor changes so that shippers can negotiate better with the relevant data. Audintel’s software tools help our clients bag the best deals by negotiating discounts with parcel carriers.

Finally

Companies must enter into contracts with shipping carriers to manage their shipping expenses. Understanding Dimensional weight charges and negotiating for lower rates requires shippers to have information on real-time data. Partnering with Audintel allows companies to bargain effectively on Dimensional weight charges with parcel carriers. With good negotiated contracts with parcel carriers, our clients can give the best price to customers and improve their profits. Contact us at +1 (619) 354 8539 or visit our Audintel website for further information about DIM factor and Dimensional weight.

smartmockups_kv7us9fq-768x538

Under what conditions can companies receive a UPS refund?

by BlogTSM Services

Did you know UPS awards refunds for 50+ service failures? So, the next time UPS loses a parcel or delivers it late-companies can request a refund. UPS promises a refund for service failure. But, the refund is not for all services and destinations.

Shippers have to be aware of the terms and conditions of the UPS refund policy. This article explores the conditions in which companies can receive UPS refunds.

Service failures and errors for which UPS offers refunds

UPS faces many service failures and billing errors. UPS’ service failures are lost packages, invalid service exceptions, late parcels, damaged packages, etc. Shipping carriers make several billing errors. Some of the billing errors include inaccurate discounts, void shipments, incorrect weights, etc. In addition, there are surcharges such as invalid residential surcharges, charges for re-delivery, duplicate charges, etc. UPS offers Guaranteed Service Refunds for these mistakes.

Conditions under which UPS refunds are offered

Ideally, shippers expect refunds from shipping carriers for shipping mistakes. Only after fulfilling its terms and conditions, UPS gives Guaranteed Service Refund (GSR) to shippers. UPS considers a request for a refund from the shippers subject to these conditions. Some of these conditions include:

Appropriate packing and labeling of shipments

UPS does not give refunds for incorrectly labeled packages. Shipments should be labeled appropriately for on-time delivery. Packing has to conform to UPS Automated Shipping System, showing the Consignee’s correct name, delivery address, and ZIP Code.

Shipment recorded in UPS Shipping System

The UPS Shipping System records every shipment and package. UPS guarantees “on-time” delivery of shipments. The delivery schedule is on UPS’ website. The parcel delivery has to be on schedule, or the shippers are eligible for a UPS refund.

Accurate documentation accompanying the shipment

When shipping internationally, shippers need to include documents with the packages. The relevant documents are for customs clearance at the country of origin or in transit. The absence of accurate documentation will lead to delay in shipments.

Saturday delivery routing label to be included on packages, wherever applicable

Shippers have to use the Saturday Delivery label on the package when shipping on a Friday. It is applicable for Next Day Air service by UPS. Else, the package delivery occurs on the next business day, Monday. UPS is not liable for late delivery in such a case. And so, shippers will not get a refund for the same.

Time limit to request for UPS refund

The time limit for claiming a UPS refund is within fifteen days from the date of scheduled delivery. Shippers can claim refunds through UPS’s Interactive Voice Response system or UPS’s online Billing Center. Details like the recipient’s name, address, package weight, tracking number, and shipment date are a part of the request.

No Additional Handling Charges for shipments

Additional Handling charges are for packages that require special handling. Also, additional charges are for parcels that exceed the weight or size limit. Such shipments will not receive a guaranteed service refund from UPS.

In addition, UPS does not offer refunds for events beyond their control (force majeure) or suspension of services.

Audintel -Shipper’s guide in receiving UPS refunds

Understanding the terms and conditions of UPS’ Service Guarantee is tedious. Further, figuring out whether shippers can request a refund is tiresome. As a result, many companies lose money when they face such hassles. In such a situation, parcel audit services such as Audintel guide shipping businesses. The automated audit services of Audintel ensure that shippers receive UPS refunds on time and in their accounts. We audit shippers’ shipping invoices and claim refunds for shippers. Our team works effortlessly in the background and saves money for businesses.

Conclusion

Tracking shipping invoices is vital for shippers. Billing errors will cost shippers dearly in the long run. Companies can save money by claiming UPS refunds for service failures. An automated audit service provides much-needed help to shippers. Audintel is helping many businesses save money. For any service failure by UPS, we help our clients receive refunds.

Do you want more information on UPS refunds?

Reach us at [email protected]. To know more about us and our services, visit the Audintel website or call us at +1 (619) 354 8539.