The days of single-carrier shipping are behind us, and many wholesalers and retailers are now using a suite of carriers to optimise their shipping functions and give their customers the best experience possible. How do they do it? And why is it worth the effort?
Multi-carrier shipping software is a logistics solution that allows businesses to compare, manage and automate shipments across multiple shipping carriers. This will enable them to access real-time rates and delivery times for various carriers, without being locked into a single provider.
With the continuous rise of ecommerce and the advancement of AI, multi-carrier shipping is evolving constantly, and the costs of transportation and logistics are expected to show an annual growth rate of 2.27% (Statista), resulting in a projected growth of AU$22.11 trillion by 2029. Now more than ever, multi-carrier shipping is essential for cutting costs, saving time, and optimising resources.
Let’s look at how multi-carrier shipping works, why you might choose to use multiple carriers, and what you need in place in order to do it effectively.
How multi-carrier shipping software works
Multi-carrier shipping simply involves assigning consignments to a range of carriers depending on what you’re sending.
For any consignment you intend to ship, there may be dozens of different freight companies that can do the job. Having the ability to pick the best one is really powerful for wholesale and ecommerce businesses. When you use the best option each time, the benefits really add up – whether it’s through improvements to the customer experience, efficiency boosts across your business or simply bottom line savings from paying the best rate possible.
Why use multi-carrier shipping?
As with any aspect of your business strategy, it’s wise not to put all your eggs in one basket. Just as your business has its distinctions that help you stand out from the crowd, transport carriers also have their own propositions and things they do well.
Take a look at some of our case studies to see how our customers have benefited from our multi-carrier shipping services.
Here are a few reasons you might choose to have multiple carrier relationships:
Shipping Costs
The most obvious (and perhaps most important) reason to run with a multiple carrier network is the ability to pick the cheapest one for every consignment you ship. Every carrier service will come in at a slightly different price for each shipment, and they all have their ways of being cost-effective, so it’s worth running a quick comparison before you send. Freight cost optimisation is achieved using various methods, including route optimisation software to determine the most cost-effective routes.
When comparing carriers, extra hidden charges may apply to specific locations or loading and unloading. At MachShip, we aim to be as transparent as possible about any charges and present all the available data in an easy-to-understand way.
Interstate Delivery
Small ecommerce side-hustles sending parcels around their local area can happily get away with using consumer-focused shippers. However, larger ecommerce businesses and wholesale shippers who send freight interstate need to be a bit more picky, as sending freight across the border adds a little more complexity to the process.
Many carriers go interstate as part of their service, but not all, so you may have one carrier for more local deliveries and another for customers or warehouses in other states.
When it comes to shipping goods across international and state borders, there are many factors to consider to ensure a smooth, cost-effective, and compliant delivery process. Customs clearance, shipping costs, modes of transport and carrier reliability, to name a few.
It’s crucial to understand the compliance requirements for interstate and international shipping. Take a look through our freight shipping compliance guide for more information.
Metro vs. Regional Shipping Costs
In big cities and metropolitan areas, local couriers use a mix of transportation options to get freight moving fast, sometimes within the same working day. This is typically favoured by ecommerce businesses, whose customers have high expectations on delivery timeframes. When shipping regionally, you don’t have those same options. You need to be able to switch between a network of regional carriers who can send freight to your regional customers to your satisfaction.
At MachShip, we employ a number of last-mile delivery optimisation strategies to ensure that the final stage of delivery is as streamlined as possible. Our approach includes smart route planning, offering a range of delivery options, and enhancing customer communication to improve the speed, reliability, and overall experience of last-mile delivery.
Rural deliveries present unique challenges that can impact cost, efficiency, and customer satisfaction. Common issues include limited carrier coverage, higher delivery costs, and inconsistent service. To overcome these, businesses often employ regional carriers with local expertise. A multi-carrier shipping system addresses these challenges without limiting you to one service.
The Right Fleet for Your Freight
If you sell a range of products in a range of weights and sizes, you may want to have a few carriers at your disposal.
Freight profile is a vital consideration when choosing a carrier. Some carriers specialise in carton freight, others in palletised freight, others in bulky freight and some in ‘white glove’ (sensitive) freight. Your product mix could easily necessitate an individual carrier for each profile.
Sustainability is also a key factor to consider when choosing your carrier. Rail is the lowest polluter; however, due to Australia’s lack of high-speed infrastructure, road transport is often preferred, and rail is underutilised.
Temperature-sensitive or hazardous materials require specialised handling that goes beyond standard shipping procedures. Consider using LTL (less-than-truckload) shipping if you require specialised services such as refrigeration or special handling for hazardous goods. A multi-carrier solution can help you pick and choose different methods that align with your needs.
Internal Strategy and Customer Experience
Some organisations choose to partner with shipping carriers whose values align with theirs. A retail group with a number of brands in its portfolio, for example, might use multiple carriers depending on their various target markets. Its ‘heritage’ brand might align with Australia Post for its history and sense of trust, and its retailer which targets a younger generation might go with a smaller, nimbler carrier that allows it to offer fast and free shipping with live tracking.
Having the flexibility to switch between carriers at will allows you to craft the customer experience beyond the sale. Shipping communications and customer experience are often to blame for low customer retention, so it could be time to change your approach if you’re seeing a lack of return customers. Tools like MachShip allow you to utilise SMS or email to communicate with customers and integrate tracking tools to enhance post-purchase customer satisfaction.
Cart abandonment can also cause problems for many businesses. By offering multiple delivery options and displaying accurate, upfront shipping rates, you can build trust and give customers the flexibility they need to complete their purchase confidently.
What you need for effective multi-carrier shipping
You can start with multi-carrier shipping immediately; however, it’s a good idea to adapt your technology infrastructure to align with the change. Staff should also be trained in handling multiple carriers, as there may be different protocols, such as labelling requirements, that must be followed accurately.
Here’s what you need in place to get the most out of multi-carrier shipping.
The ability to print multiple shipping labels in-house
Each carrier has its own unique label, and carriers won’t take a consignment without theirs on the shipment. With MachShip, you can use your existing printing hardware to print out perfect labels for all of Australia’s main shippers and quote, consign, manifest, track and view PODs.
In the long run, thermal printing is more cost-effective than standard printing. However, expect a higher initial cost for a thermal printer.
Understanding barcodes and RFID integration options is a good idea. Barcodes are a cost-effective and widely used option for basic inventory tracking, but they require manual scanning and are more prone to human error. RFID offers faster, more accurate, and automated tracking by reading multiple tags at once, though it involves higher upfront costs. The right choice depends on your budget, scale, and the level of precision your operations demand.
Somewhere to centralise and compare all your pre-negotiated rates
The time you spend on each carrier’s website getting rates and putting them into your Excel spreadsheet will mitigate any cost savings you might make from comparing carriers. Use a freight management system like MachShip to consolidate every carrier in your network into one browser window, and pick the right one instantly.
MachShip also offers API integration with carrier systems, allowing you to quote, consign, print labels, manifest, track, and view PODs. This allows you to keep your rates flexible, adapting to shipment requirements and changing conditions.
A dashboard to track carrier performance
Data on carrier performance is essential for making the right decisions in the future. Don’t rely on returns or anecdotal evidence – use a dashboard like MachShip’s to instantly determine the DIFOT score of all your carriers. Our guide to key performance indicators (KPIs) addresses the top 9 metrics to focus on for better freight success. We use predictive analytics to analyse and forecast data, helping you monitor and improve carrier delivery performance.
Common Multi-Carrier Shipping Challenges and Solutions
Integrating multiple carriers into a single-carrier shipping system can be technically challenging. Using shipping management software that offers seamless multi-carrier API integrations simplifies setup and ongoing maintenance.
Working with multiple carriers requires ongoing negotiation, performance monitoring, and contract management. MachShip streamlines communication, compares carrier performance, and reviews data to assist in decision-making.
Late deliveries, lost packages, and unexpected fees will occur in any shipping operation, but managing them across multiple carriers can be chaotic. Automating alerts and using communication tools (email and SMS) can ensure quicker resolutions and better customer service.
As your business grows, your multi-carrier strategy will naturally adapt. That’s why it’s important to consider all available options and research carriers early to be sure which is best for each shipment.
Multi-Carrier Shipping Technology Trends
AI and machine learning revolutionise shipping by enabling dynamic decision-making based on historical data, real-time conditions, and predictive models. These tools help to optimise carrier selection, forecast delays, and reduce shipping costs, making your shipping strategy smarter as your business scales.
Mobile apps allow teams to manage shipments, track deliveries, and resolve issues on the go. This flexibility improves response times, boosts productivity, and supports remote or warehouse-based operations.
Blockchain offers a secure, tamper-proof way to track shipments, verify handoffs, and store shipping data. It enhances transparency across the supply chain and reduces the risk of fraud or data loss.
From drones to self-driving vehicles, autonomous delivery technologies are reshaping last-mile logistics. These innovations promise faster, more efficient delivery, especially in high-demand or remote areas. While these methods are not yet widely used, they’re worth monitoring as part of a future-ready shipping strategy.
As ecommerce and logistics evolve, businesses are moving away from single-carrier shipping in favour of multi-carrier solutions to optimise cost, speed, and customer experience. Multi-carrier shipping software like MachShip allows businesses to manage, compare, and automate shipments across various carriers, offering flexibility and real-time decision-making. This approach supports cost savings, better delivery performance, and scalability, especially for companies shipping across metro, regional, and interstate areas or handling diverse freight types.
For more information on multi-carrier shipping and any other shipping needs, head over to our blog.
FAQs
What is multi-carrier shipping?
Multi-carrier shipping means using more than one shipping provider to handle your deliveries. Instead of being locked into a single carrier, you can compare options and pick the best one for each shipment, saving time, cutting costs, and helping to keep your customers happy.
What does multi-carrier mean?
“Multi-carrier” just means working with multiple freight companies instead of relying on one. It gives you more flexibility to choose the best carrier based on what you’re sending, where it’s going, and how fast it needs to get there.
What is the difference between single-carrier and multi-carrier shipping?
Single-carrier shipping ties you to one provider, while a multi-carrier shipping option gives you the freedom to pick and choose. With the right shipping software, you can compare rates, automate bookings, and choose the best carrier every time – no more one-size-fits-all.
What is bulk carrier shipping?
Bulk carrier shipping is for moving unpackaged goods like grain, coal, or minerals, usually by sea and in massive quantities. It’s a different game from the parcel-based shipping most e-commerce and wholesale businesses deal with.
MachShip integrates with hundreds of carriers and allows you to import your negotiated carrier rates. Want to find out more? Book a demo of MachShip and see how you could start adding carriers to your shipping function without the hassle.