Under the program, retail members will receive substantial discounts with UPS Small Package freight on:
We saw significant savings right away! Our accounts payable manager actually thought there was something wrong with an invoice because the freight was so low.
Discounts vary depending on shipping variables like delivery service type (twoday, ground commercial, etc.), carton size, and weight. That said, the RIA’s test of the model for ground commercial service resulted in an average discount of 35% on orders that ship within the program.
That translates to substantial annual savings. For example, an average-sized store whose average yearly freight costs are $25,000 would save over $8000. That is almost 20 times your annual RIA membership dues! For larger stores, yearly savings would be in the tens of thousands compared to the published UPS pricing vendors prepay and add to their invoices.
The program is managed by third-party contract provider, Parcel Management Group, who will handle the entire onboarding process for each RIA member.
The PMG service model extends well beyond the program set-up. They analyze your freight bills and provide guidance, set up routing with your vendors, and track your billing. Have a problem with a freight bill? Call PMG. They’ll get it fixed, free of charge. PMG literally becomes your in-house freight manager, adding value well beyond the actual UPS discounts, and their services are 100% free of charge.
One of the ancillary benefits to the program is the Refund Recovery Audit Service. In short, if UPS ships late, you are entitled to a refund, and the refund service secures it for you.
More details: The Refund Recovery Audit Service applies to regular small package shipping with UPS. (It does not apply to LTL shipping.) Since UPS offers moneyback guaranteed transit times, every package billed to your UPS account has a transit time they must meet. If they fail to do so you are eligible for a refund for the full cost of shipping. Keep in mind that UPS will not tell you when a package is delivered late, nor will they automatically refund your money. On your side, you have no cost-effective way to manually identify and file claims as it would be way too time consuming of a task. The good news is the refund recovery service takes care of that, and through this service, you can expect to save up to an additional 5%.
There is no contract or commitment involved and no set-up or out of pocket costs at any time. It works strictly on a contingency basis, which specifically means there is a 50/50 split on any refunds the service generates, and are documented on your UPS invoices as a credit. The only requirement to set up the service is that you must be registered for electronic billing through the UPS.com website. (More on that process below)
When the program launches, every RIA retail member will be provided with an
on-boarding how-to guide. This guide will detail each step of the process,
Once these steps are complete, PMG takes over. PMG will perform a comprehensive review of each retailer’s current pricing and freight practices with the vendors provided. Upon completion of the review, PMG advises the retailer on where they can save, and where to NOT use the program. (For example, PMG wouldn’t recommend setting up the program with vendors who provide free freight.)
PMG then submits to all selected vendors your specifically tailored routing instructions. Every RIA members’ individual UPS shipper numbers are automatically flagged in the UPS system to receive the discount, so it is not necessary for the retailer to do anything more than simply place orders.
There are three main benefits to setting up UPS online billing.