FedEx Freight has introduced a pilot program that will set shipping rates based on key dimensions such as weight, dimension, and location, not the classification of the freight.
What’s being called the “space and pace” program is a massive deal for many of our customers who have battled FedEx Freight rates for decades. The program will help many companies simplify operations and cut down on billing headaches for FedEx Freight shipments.
Let’s dive into why the pilot program is important for companies that operate in the domestic and global supply chain. We’ll also discuss how we can help you take advantage of the new opportunity to support freight shipments.
Tired of Battling FedEx Freight Rates? Relief is in Sight
The most critical element of the pilot program is the use of “dimensional” technology to determine volume based on a shipment’s weight and dimensions. Embracing the new technology will help FedEx Freight break away from a classification system that has led to many disputes over the years.
Now, FedEx can provide upfront pricing based on the actual volume of the freight and the required time for the freight to reach its destination. This improvement will cut down on so many issues that supply chain leaders have historically battled:
- No more complex and confusing formulas to determine the FedEx Freight rate.
- Eliminates disputes between shippers, carriers, and other parties about how shipments should be classified.
- Reduces after-the-fact billing disputes and chargebacks.
- No more wasted time and resources trying to resolve post-shipment billing issues.
Now, companies will receive straightforward quotes from FedEx Freight based on dimensional-based pricing. You will still have the opportunity to select a Priority or Economy rate depending on the required time to move the freight from one location to another.
Then, once FedEx Freight receives a shipment, they will use the dimensional method to validate the freight’s characteristics and present your company with the final bill.
How CloudLogix Can Support Your Company in this New Era
The introduction of the “space and pace” program truly represents a new era for freight shipping. FedEx Freight has relied on a classification system that dates back to the 1930s; now they are embracing modern, simplified technology to streamline customer billing.
The transition aligns with the mission of CloudLogix to help our customers optimize and simplify their supply chain operations. We use technology to centralize each company’s supply chain, improve processes, and enhance communication among all stakeholders.
Consider the companies we can support with our CloudLogix platform:
- Aerospace companies that ship large parts and components such as turbines.
- Manufacturers that handle bulky machines and parts.
- Medical companies that deliver life-saving equipment to hospitals.
- Retail or Ecomm companies that ship large volumes of products.
- Any other company that ships or receives freight orders.
We can help your company realize cost and time savings by providing your team with the tools they need to make informed shipping decisions every time.
Our CloudLogix platform brings data together from multiple sources to present you with FedEx Freight rates and related information about each shipment to simplify decision-making.
For example, CloudLogix can use your customer order details to easily let your team know whether they need to select a Priority rate for an expedited shipment or an Economy rate for a less-urgent order. We can even automate this process to provide you with your shipping documents even faster!
No more guessing. No more wasted time. No more over-paying for shipments. No more post-shipment billing disputes. Everything is visible in one location.
– Would you like to know more about how to take advantage of the new FedEx Freight program and our supply chain technology?
Contact us today to speak with one of our supply chain logistics professionals. Let’s find a solution that works for your company!
