In an industry built on networks and connections, sometimes the most valuable insights come from conversations with your peers. While technology and data are crucial, the relationships you build with other professionals facing the same challenges are just as important. The Parcel Forum is the premier event for making those connections. It’s a place where you can share war stories about carrier negotiations, discover new partners through trusted recommendations, and learn from the collective experience of the entire small-package industry. This article covers the major trends discussed at the event, highlighting how strategic partnerships and community knowledge are shaping the future of parcel logistics.
Parcel Forum, the pinnacle event for small parcel logistics, summons industry professionals from across the country to explore and discuss the latest trends, technology, and solutions related to parcel shipping and fulfillment. Whether you are an industry veteran or just diving into parcel shipping, this is the event to attend. Let’s review the most important takeaways from this year’s Forum in Nashville, Tennesee’s Gaylord Opryland Resort, from September 11 – September 13, 2023.
First Things First: What is a Parcel?
Before we get into the nitty-gritty of shipping strategy, let’s start with the basics. The word “parcel” gets thrown around a lot, but what does it actually mean in the world of logistics? Understanding this fundamental unit is the first step toward mastering your shipping operations. At its core, a parcel is simply a product or a collection of products that have been wrapped and placed into an envelope or box for mailing. It’s the individual package that makes its way through a carrier network like UPS or FedEx to reach its final destination. For any business that ships goods, each parcel represents a promise to a customer, and managing them efficiently is key to profitability and customer satisfaction.
The Definition in Shipping
In the shipping industry, the definition of a parcel is quite specific. It refers to a single, self-contained package that can be handled and sorted by automated systems within a carrier’s network. This is why there are strict rules around size and weight. Generally, anything under 150 pounds can be considered a parcel. This distinction is crucial because it determines how your shipment is processed, priced, and transported. For high-volume shippers, thinking in terms of individual parcels helps in everything from warehouse packing workflows to negotiating carrier contracts, as each package represents a line item on your invoice and an opportunity for cost savings.
Parcel Shipping vs. Freight Shipping
The line between parcel and freight shipping is drawn at the 150-pound mark. Parcel shipping is designed for smaller, lighter items that are easy to move and sort individually. Because carriers can consolidate many small packages onto one truck, it’s a cost-effective method for direct-to-consumer shipments. Freight shipping, on the other hand, is for items over 150 pounds, which are often shipped in bulk on a pallet. Understanding when to use which method is a critical part of modal optimization. Choosing the wrong one can lead to unnecessary expenses, either by paying freight prices for a small item or by breaking down a large shipment into costly individual parcels.
Other Meanings of the Word “Parcel”
While we’re focused on logistics, it’s interesting to note that the word “parcel” has other meanings, particularly in real estate. This context can help you appreciate the word’s core meaning of “a distinct portion of something.”
Parcel in Real Estate
In real estate, a parcel refers to a specific piece of land that is legally defined and recognized as its own unit. It has official boundaries that are recorded in public records, much like a shipping parcel has defined dimensions and a unique tracking number. This legal definition ensures clear ownership and is used for property taxes, sales, and development. Just as a shipping parcel is a single unit within a larger logistics system, a real estate parcel is a single unit of land within a larger geographic area.
Subdividing a Parcel
Just as you might break a large shipment into smaller parcels, a large piece of land can also be divided. Subdividing is the process of splitting one large parcel of land into two or more smaller ones. This action typically requires approval from local planning authorities to ensure that each new parcel complies with zoning regulations and legal requirements for things like road access and utilities. It’s a formal process that legally redefines property boundaries, creating new, distinct parcels from a single larger one.
How to Ship a Parcel: The Basic Steps
Even for seasoned logistics professionals, reviewing the fundamental steps of shipping a parcel is a great way to spot opportunities for improvement in your own operations. Each step, from packaging to postage, has a direct impact on your costs and your customer’s experience. Getting these basics right consistently is the foundation of an efficient and reliable shipping strategy. Let’s walk through the four key stages of getting a package from your warehouse into the hands of your customer.
1. Packaging
Proper packaging does more than just protect your product; it protects your bottom line. Start with a box that’s large enough to hold your items comfortably but not so large that you’re paying for empty space. Use cushioning material like bubble wrap or air pillows to prevent items from shifting during transit. Once packed, seal the box securely with 2-inch wide packing tape. This step is your first line of defense against damages, returns, and costly carrier fees for non-standard packaging. Getting packaging right helps you avoid unexpected surcharges and ensures your product arrives as intended.
2. Addressing
An incorrect address is one of the quickest ways to create a poor customer experience and incur extra costs. Whether you’re writing it by hand or printing a mailing label, the sender’s and recipient’s addresses must be clear and accurate. For businesses, using an address validation tool is a non-negotiable step to prevent delivery exceptions. A simple typo can result in a returned package, address correction fees, and a frustrated customer. Clean data is the backbone of efficient shipping, and it all starts with a correct and clearly printed label.
3. Postage
Paying the correct postage is essential. If you underpay, the package might be returned to you, or worse, the carrier could charge your customer for the remaining balance upon delivery. On the other hand, consistently overpaying, even by a small amount, can erode your profit margins over thousands of shipments. This is where diligence pays off. Regularly auditing your carrier invoices can help you catch billing errors and ensure you’re only paying for the services you actually receive. An invoice audit and recovery process can uncover these discrepancies and put money back into your budget.
4. Shipping
The final step is getting the parcel into the carrier’s hands. You can schedule a pickup with your mail carrier or drop it off at a designated location like a post office, a UPS Store, or a FedEx store. For high-volume shippers, this process is often streamlined with regularly scheduled pickups. However, your choice of carrier and service level at this stage is a major strategic decision. Relying on a single carrier can leave you vulnerable to price hikes and capacity issues. Exploring a strategy of carrier diversification can provide more flexibility, better rates, and improved service resilience.
Common Parcel Shipping Terms
The logistics industry is filled with its own language and acronyms. Understanding a few common terms can help you better manage your shipping operations and communicate effectively with your carrier partners. These terms are part of the everyday vocabulary of shipping, and knowing them will give you a clearer picture of your parcel’s journey from start to finish.
What is a Parcel Number?
A parcel number, more commonly known as a tracking number, is the unique identifier assigned to your package by the shipping company. This number is your key to visibility. It allows both you and your customer to follow the package’s journey through the carrier’s network, from the moment it’s picked up to the final delivery scan. For businesses, tracking numbers are vital for customer service inquiries and for analyzing shipping performance. Centralizing this data in a spend management portal can provide powerful insights into delivery times, exceptions, and overall carrier effectiveness.
What is a Parcel Locker?
A parcel locker is a secure, self-service storage box where packages can be delivered and picked up 24/7. They are often found in apartment complexes, retail stores, or public transportation hubs. For shippers, parcel lockers are a valuable tool for ensuring successful first-time deliveries, especially for items that are too large for a standard mailbox or require a signature. By reducing the number of failed delivery attempts, lockers can help lower last-mile delivery costs and improve customer convenience by giving them a secure and flexible pickup option.
The Importance of Carrier Diversification
Few would debate Carrier Diversification as the most prominent theme, a key focus throughout the exhibit hall and in more than a dozen sessions. Relying solely on one national carrier leaves shippers vulnerable to rate increases, service disruptions, and limited customer delivery options. With ever-changing options and new carriers emerging each year, it has never been more important to evaluate and diversify your carrier mix. Many are keen to see how Amazon yet again reorients the industry as they relaunch delivery for shippers outside their marketplace. Carrier Diversification is becoming even more important as largest carriers begin experimenting with dynamic pricing models. Limited, single-carrier shippers will incur the most risk as dynamic pricing becomes more prevalent. Without the flexibility to choose between carriers, shippers may pay “surge” pricing when demand is high, without achieving any meaningful savings when carriers see demand fall.
Why Warehouse Automation and 3PLs Go Hand-in-Hand
Automation can be a game-changer for the largest shippers as ecommerce demand continues to grow. By using technologies such as robotics, automated sortation, and advanced software, shippers can handle higher order volume, expedite order processing, and improve inventory accuracy. This not only enhances the ability to meet customer demands but also lowers labor costs and minimizes the risk of human error. Automation is not just an option, but a necessity for those in fulfillment looking to remain agile and ahead of the competition in an ever-changing industry. Conference sessions also highlighted the importance of selecting a fulfillment partner who strategically aligns with your business objectives now and as you scale. Leveraging a strong third-party fulfillment partnership for inventory management, pick & pack, shipping, and returns management can unlock enormous opportunities for your business.
Avoiding Common Carrier Pricing Traps
We would be remiss to not discuss the importance of a sound strategy when looking to mitigate increased carrier rates and surcharges. Shippers looking to improve their contracts have a multitude of variables to evaluate and manage when crafting their approach. What is the true impact of next year’s GRI? Where will “demand” surcharges be applied? How does my program measure up to similar shippers? Without the ability to benchmark their parcel program, shippers face a grueling battle when negotiating with their carriers. With many citing inconsistent communication and inexperienced carrier reps, this makes the process even more taxing. Premier consulting firms such as Shipware will streamline the process, guiding and educating shippers from start to finish through carrier negotiations. This ensures shippers maximize their savings while avoiding the “gotchas” and pitfalls often missed.
Using Tech to Simplify Your Carrier Mix
When diversifying your carrier mix, it can seem daunting to integrate new carriers. But with the right solutions and technology partners, common pain points can be eliminated. During the TMS panel discussion, Bob Malley, CEO of Sendflex, provided insight about how Parcel TMS technology automates complex decision-making around how, when, and where to use a more diversified mix of carrier services in an omni-channel fulfillment environment. E-commerce is an incredibly competitive market and those with the most-optimized shipping rates will yield higher conversions and lower cart abandonment rates. AI and advanced-learning models continue to pave the way for increased delivery efficiency and improved customer experience. Though as much as technology can support these objectives, it has yet to be a sufficient replacement for seasoned experts.
Why Strategic Partnerships Drive Long-Term Growth
Parcel Forum was a successful conference for parcel supply chain partnerships. The common discussion points among many partners were that cultivating partnerships is the path to increased growth and sustainability. Being that cold calling conversions are down, the market understands there needs to be a shift. Companies do not answer the phone or return voicemails like they did 10 years ago. They want warm introductions from people they trust. Just like having to go to a doctor if you have an illness. What do you do? You ask the circle of trusted relationships. Who is the best doctor in that area of expertise? A warm introduction already builds trust and rapport. The conversions are much higher. Statistics today show about 84% of buyers are now starting the purchasing process with a referral. Cold calling is seeing about a 1% call back rate. There’s a 24% open rate of outbound cold emails. Today, the strategic approach is to invest those cycles in cultivating partner relationships. This can produce a 40%+ conversion rate in getting meetings through a warm introduction. The market has shifted and adapting is critical. It’s time to focus on Partnerships to drive growth. Additionally, conversations were centered around the value Partnerships bring to your customer base. In today’s market, creating as much value as possible for your customers is critical. Increased competition creates a challenging marketplace. Differentiation and stickiness are the recipe for increasing lifetime customer value. If there are gaps in your solution, bring in a partner to fill those gaps. Your customers will see the value and look to you as a trusted advisor that brings significant value. When the competition knocks on their door it will make it harder to leave. You helped that customer in several areas of their business.
Connecting After Hours: Our Happy Hour Recap
Parcel Forum 2023 Happy Hour
From Our Sessions: Tackling Negotiations and Dynamic Pricing
Shipware once again hosted Parcel Forum’s annual pre-conference, daylong workshop on parcel carrier negotiations entitled, “Contract Negotiations: It’s a Brave New World (What You Need to Know Now!).” The interactive session covered tactics and strategies that shippers can employ to optimize their carrier spending and performance and included peer-to-peer activies and breakout groups based on transportation spend to address shippers’ unique needs. Our Professional Services team covered real-world negotiation examples, case studies, led group negotiation exercises, and provided strategies for evaluating attendees’ current carrier contracts. If you’re a logistics pro responsible for your organization’s parcel contracts, make sure to sign up for this 5-star rated session at Parcel Forum 2024. We also hosted “Death by Dynamic Pricing? What Carriers Mean by ‘Dynamic Pricing’ and What It Means for Your Business” – a 40-minute floor session on how the vaguely-defined dynamic pricing will impact shippers. We anticipate this topic will continue to drive interest at next year’s Parcel Forum as carriers continue to leverage dynamic pricing’s flexibility to drive revenue.
Is Parcel Forum Worth Attending?
Short answer: absolutely! Parcel Forum is one of the largest events of the year that focus specifically on parcel shipping a major cost center for e-commerce comanies, D2C shippers, retailers, third-party logistics (3PL) companies, and more. Parcel logistics is also an industry that’s simultaneously constantly evolving and slow to change. Events like Parcel Forum give shippers an opportunity to both discover new technology/advancements and how to overcome common obstacles in implementing those advancements within their own operations. The Forum is held in a major city each year, so attendees can take advantage of the central location to explore, take in the sights, and dig into the food scene after show hours. There are also plenty of networking opportunities for logistics and supply chain professionals, partnership executives, job seekers, and more. Parcel Forum also assesses the educational value of each session to make sure your time and money are well spent. If you’re attending next year, make sure to check out our pre-conference workshop on contract negotiations; it just may be a fit for you!### About the Parcel Forum Event
Core Purpose and Structure
At its heart, PARCEL Forum is designed to bring together the entire small-package fulfillment industry. The event unites professionals through a dynamic mix of conference sessions, an extensive exhibit hall, and valuable peer networking opportunities. The goal is to help companies like yours find new ways to improve both efficiency and strategy. Whether you’re looking to explore the latest shipping technologies on the exhibit floor, attend a session on carrier contract negotiation, or simply connect with other logistics leaders who are facing the same challenges, the Forum provides the perfect setting. It’s a fantastic opportunity for both seasoned industry veterans and those new to the field to gain practical insights and build relationships that can help move their business forward.
### Future Parcel Forum Dates
Parcel Forum 2025 in Chicago
Mark your calendars, because the next event is already on the horizon. Parcel Forum 2025 will take place from September 8-10, 2025, in Chicago. This upcoming conference is the ideal place to continue the conversations around key industry topics like carrier diversification, automation, and managing rising shipping costs. It’s a prime opportunity to get ahead of the curve and start planning your strategy for the following year. Attending gives you a chance to meet with experts, see new solutions firsthand, and gather the intelligence you need to make smarter decisions for your supply chain. We’re already looking forward to connecting with shippers and sharing our latest insights on how to optimize carrier agreements and reduce expenses.
PARCEL Forum 26 in Orlando
Looking even further ahead, the industry will gather once again when PARCEL Forum 26 will be held in 2026 in Orlando. While it may seem far off, the parcel logistics landscape evolves quickly, and staying informed is crucial for long-term success. Planning to attend events like this well in advance ensures you remain at the forefront of industry trends and innovations. It’s a commitment to continuous improvement and a recognition that the strategies that work today may need to be refined for tomorrow. Keeping this event on your radar is a smart move for any organization focused on maintaining a competitive edge and achieving sustained growth in its fulfillment operations.
What’s Next for Your Parcel Strategy?
With the challenges shippers face daily Parcel Forum was an insightful conference providing shippers best practices and support to help navigate the evolving Parcel landscape. Whether you’re looking to diversify your carrier mix, optimize your technology, or reduce your parcel costs, Parcel Forum is full of experts to support you. As a premier firm in this space, Shipware is here to advocate and support shippers in this ever-changing parcel market. We hope to see you next year!
Frequently Asked Questions
Why is everyone talking about carrier diversification right now? Relying on a single carrier used to be the standard, but it’s become a risky strategy. When you’re tied to one provider, you’re completely exposed to their annual rate increases, service disruptions, and new pricing models like dynamic pricing. Building a mix of national, regional, and specialized carriers gives you leverage and flexibility. It allows you to choose the best service for each specific shipment, protect your budget from surprise surcharges, and ensure your packages get delivered even when one carrier is facing delays.
What’s the most common mistake companies make in carrier contract negotiations? The biggest misstep is negotiating without data. Many shippers go into conversations with their carrier reps without knowing how their rates and incentives compare to other businesses with a similar shipping profile. Without proper benchmarking, you don’t have a clear picture of what’s possible, which makes it difficult to push back on unfavorable terms or identify hidden savings opportunities. You end up negotiating in the dark and often leave significant money on the table.
My shipping process isn’t very automated. What’s a realistic first step into using more technology? You don’t have to install a fleet of robots to start seeing the benefits of technology. A great first step is implementing a multi-carrier shipping software or a Transportation Management System (TMS). This kind of platform automates the complex process of rate shopping across your different carriers in real-time. It ensures you select the most cost-effective service for every single package without manual work, which simplifies managing a diverse carrier mix and can immediately lower your shipping costs.
The article mentions strategic partnerships. How do these actually help reduce shipping costs? Strategic partners act as an extension of your team, bringing specialized expertise you may not have internally. For example, a consultant can analyze your shipping data to find savings you’ve overlooked or manage the entire carrier negotiation process for you. A technology partner can provide tools that fill gaps in your current systems. These relationships provide value by introducing new solutions, offering trusted advice, and connecting you with other experts, all of which contribute to a more efficient and cost-effective supply chain.
Is attending an event like Parcel Forum really worth the time and cost for my team? Absolutely. While the sessions and workshops provide incredible value, the real return on investment often comes from the connections you make. It’s a unique opportunity to talk with hundreds of other professionals who are facing the exact same challenges you are. A single conversation in the exhibit hall or at a networking event can introduce you to a new regional carrier, a cost-saving technology, or a negotiation strategy that more than pays for the trip. It’s an investment in your team’s knowledge and your company’s professional network.
