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Shipping Cost Calculator

Most shipping carriers use DIM to calculate the rates they offer, which takes the multiplied value of length x width x height and divides the total by a standard divisor. But, did you know that you can negotiate that divisor?

 

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Shipping Rates & Contract Negotiation

At ShipSigma we manage, analyze, and optimize over $1Billion in parcel spend to provide you with a deep understanding of the excess of fees your contract has built in and where savings exist. Using our industry-leading cost modeling software, we’ll provide you with a Shipping Savings Guarantee before you negotiate. Once negotiation begins, we'll provide you with a market-best carrier network strategy, contract management & compliance services, surcharge mitigation, and ongoing analysis and optimization opportunities.

 

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Let ShipSigma Calculate Your Savings

Using our industry-leading cost modeling software, we’ll let you know what you should be paying, and what you could be saving at no cost.
We could not say enough good things about our relationship with ShipSigma. Beyond the initial savings, they continue to find us new angles for savings, set up dashboards specific to our needs, and meet with us quarterly to go through reporting/review savings/new opportunities. ShipSigma has been more than just a service for us, they have been a continuous partner as we navigate the difficulties of controlling our freight costs and holding the vendors accountable. 

Tyler B. Vice President of Finance, Leading Global Manufacturer

4 hours. It took less than 4 hours of my time for my company to see half a million in annual savings. No headaches, no feet-dragging negotiations, no confusing documents. It was so easy.

Todd M. Vice President, Food Manufacturer and Distributor

The insights and analytics, ShipSigma provided before and after negotiating our carrier agreements, make it clear we have a long-term partner who is aligned with our company values. The cost modeling and rate simulation let us know the exact savings we would see, down to the last cent. After running our historical data, ShipSigma was able to find us almost 28% in annual shipping savings with our same carrier.

Jonica H. Controller, Market Leading Wine Distributor

Our team managed billions of dollars of various category spend. To have ShipSigma guarantee a savings and then fully execute so that we’re realizing increased EBITA within 60 days allows us to focus on other strategic opportunities.

Randy H. Chief Procurement Officer, Leading Provider of Pork Products

We thought we had the best rates. We were told we had the best rates. ShipSigma got us better rates. They found us nearly 25% in savings and helped us renegotiate our contract with our carrier. It was just so easy.

Brad M. Chief Operations Officer, Clothing Retailer

The parcel invoice audit was a lifesaver for us. The team at ShipSigma monitored the weekly audit and noticed that instead of shipping air, over 60% of our packages could have traveled ground with no delay in arrival. They saved us more money than we had ever saved in our manual audit process.

Julie F. Chief Financial Officer, Industry Leading Retailer

How Much Could I Save Annually?

Move the slider to reflect your annual parcel spend to see how much you could save.

Annual Parcel Spend

Annual Parcel Spend Savings

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Shipping Calculator

We don’t need to tell you that shipping prices are on the rise. UPS & FedEx's latest price increases took effect on December 27, 2022 and January 2, 2023 respectively. These increases included changes to additional and value-added charges, like address correction changes, additional handling fees, and large package surcharges. While rising costs may seem out of your control, they don’t have to be. At ShipSigma, we discover savings for our customers with AI-powered parcel invoice audit software and data-driven contract engineering.

Dimensional Weight

Dimensional weight, also known as "volumetric weight," is a way to calculate the weight of a package based on its size, rather than its actual weight. This method is used by shipping companies to ensure that they are charging customers a fair price for shipping larger, lightweight items.

The formula for calculating dimensional weight is:
Dimensional weight = (length x width x height) / Dimensional Factor

The dimensional factor is a number set by the shipping company, which is typically around 139 for UPS and FedEx.

For example, if a package has dimensions of 15 inches x 10 inches x 8 inches, and the dimensional factor is 139, the dimensional weight of the package would be:
(15 x 10 x 8) / 139 = 11.5 lbs

So, even if the package's actual weight is only 5 lbs, the shipping company would charge the customer based on the dimensional weight of 11.5 lbs.

Dimensional weight can affect shipping cost, as the cost to ship a package is often based on whichever is greater: the package's actual weight or its dimensional weight.

Reduce Your Shipping Spend with ShipSigma

ShipSigma makes it easy to hold your parcel shipping company accountable. How do we do it? With our contract compliance and fully automated invoice auditing software and. Here’s how it works:

  • Regularly updates with your latest data to eliminate human error
  • Compares your invoices and payment records to your contracted rates
  • Identifies discrepancies where you paid more than you should have
  • Requests refunds for incorrect charges or incomplete services from your carrier
  • Uses AI to analyze shipping trends to reduce errors in the future
  • Empowers your team with data to negotiate more favorable contracts in the future

Parcel invoice audits bring immediate savings, and when paired with carrier agreement negotiation, they can save your business an average of 25% on shipping costs. When you begin to calculate those savings the choice is easy. Try ShipSigma for free today.