Shipping for large-scale manufacturing isn’t just about moving products from point A to point B—it’s about maintaining a smooth, cost-effective supply chain that meets customer demands and keeps businesses competitive. And with large, heavy, or oversized packages, efficient shipping isn’t just a necessity—it’s a competitive advantage.
However, navigating the complexities of parcel spend management presents significant hurdles. Rising costs, unpredictable disruptions, and evolving regulatory requirements can create significant roadblocks for large-scale manufacturers.
In this article, we’ll explore 6 major shipping challenges that large-scale manufacturers face and actionable strategies to overcome them. Let’s dive in!
6 Parcel Spend Management Challenges for Large-Scale Manufacturing
With skyrocketing shipping demand, manufacturers can struggle to navigate rising shipping costs, delays, and more. There are six core challenges in parcel shipping for large-scale manufacturing:
1. Increased Carrier Surcharges
Carriers impose substantial surcharges for oversized packages, leading to additional costs that can reach hundreds of dollars in extra fees per shipment. An “Unauthorized” surcharge can add over $1000 to your shipping cost. For manufacturers shipping large or heavy items, these fees significantly impact the bottom line and may result in lost money on every item shipped.
Reveel’s 2025 General Rate Increase report uncovered that Large Package and Oversize surcharges will increase between 21-29% year over year, depending on type, zone, and carrier.
2. Fluctuating Shipping Costs and DIM Weight Pricing
Unpredictable costs—including fluctuating costs like fuel surcharges, changing zip codes, incurring a Delivery Area Surcharge (DAS), and dimensional (DIM) weight pricing—make budgeting for shipping challenging. With DIM pricing, manufacturers are forced to pay more due to the space their packages occupy rather than their actual weight, driving costs even higher.
Shipping container shortages are one of the main reasons for fluctuations in shipping costs for large-scale manufacturing. And while a full-blown shortage is unlikely, the potential oversupply of containers and geopolitical instability contribute to high shipping costs.
3. Delays and Disruptions
Port congestion, customs clearance issues, and weather-related disruptions significantly impact production timelines. When these unexpected shipping delays occur, it doesn’t just impact costs; it can also affect manufacturing efficiency and customer satisfaction.
4. Regulatory and Compliance Hurdles
Navigating cross-border trade regulations, tariffs, compliance, and environmental standards is complex to say the least. Compliance with emissions standards and other environmental regulations further complicates shipping for large-scale manufacturing. Without complete visibility into global supply chains, large-scale manufacturers can’t easily meet regulatory compliance.
5. Capacity Constraints
During peak seasons like November through December, carriers face capacity shortages, making it difficult for manufacturers to secure freight space. Without adequate carrier options, businesses will likely face:
- Delayed shipments
- Increased shipping costs
- Potential loss of customer trust
6. Last-Mile Delivery
The final leg of shipping—the “Last-Mile”—is often the most expensive and complicated. Last-mile delivery costs account for up to 41% of total logistics supply chain costs, and delivering bulky or heavy items presents more unique challenges, including:
- Specialized labor and installation services
- High customer delivery expectations
- Lack of communication with customers
7 Strategies To Optimize Large-Scale Manufacturing Shipping
Large-scale manufacturers face many shipping challenges, but they aren’t insurmountable. Parcel Spend Management (PSM) 2.0 technology empowers manufacturers to improve parcel shipping spend efficiency and reduce overall shipping costs. Here are 7 strategies to explore to refine your parcel spend management initiatives:
1. Leverage Advanced Technology For Real-Time Visibility
Parcel spend management platforms like Reveel provide real-time analytics that allow manufacturers to predict potential disruptions, monitor shipping and delivery trends, and adjust shipping strategies before issues arise. By leveraging AI and predictive analytics, these tools can optimize shipping routes, reduce costs, and identify the most cost-efficient shipping methods and carriers.
With better visibility and real-time tracking, your business can improve parcel shipping spend efficiency.
2. Strengthen Carrier Relationships
Strategic carrier management is crucial to:
- Build long-term relationships with multiple carriers
- Negotiate better rates through volume and loyalty
- Diversify carrier options to reduce dependency risks
Believe it or not, you have power over your shipping rates. Manufacturers can negotiate better rates and service agreements by building long-term partnerships with multiple carriers, ensuring sufficient capacity during peak seasons.
3. Streamline Logistics with Automation
Automating inventory management, order fulfillment, and shipping processes reduces human error, speeds up workflows, and improves overall efficiency. It can be especially helpful with parcel audit and cost recovery. Why? Because 75% of parcel audit credits owed by UPS and FedEx go unclaimed every year.
The automated features in Reveel’s PSM 2.0 technology help manufacturers:
- Detect billing errors, incorrect DIM weight charges, and overcharges
- Recover costs from carriers with lost and damaged claims
- Verify accurate billing and identify potential cost-saving opportunities.
4. Optimize Packaging and Freight Loads
Smart packaging can make or break your shipping budget. Optimizing shipping packaging can significantly reduce shipping costs by allowing more products to be packed in fewer shipments, minimizing the need for oversized packages.
Using right-sized packaging not only lowers costs but also helps manufacturers avoid DIM weight surcharges, which are based on the dimensions rather than the weight of the shipment. Again, minimizing the need for oversized shipments to avoid additional surcharges.
5. Develop Contingency Plans
What happens when your original shipping plan goes up in flames? If you don’t have a contingency plan in place, it’s time to create one.
Comprehensive contingency strategies help large-scale manufacturers manage supply chain disruptions. By identifying backup carriers or planning alternative shipping routes in the event of delays, businesses can proactively mitigate risks by identifying potential bottlenecks.
6. Prioritize Sustainability
In response to growing environmental regulations and customer demand for eco-friendly products, manufacturers should prioritize sustainability in their shipping practices. This may include:
- Incorporating eco-friendly packaging materials
- Avoid services like: “Next Day Air”, using ground services with the same Time in Transit
- Optimizing shipping routes to reduce emissions
- Partnering with carriers that offer carbon-neutral shipping solutions
7. Focus On Reverse Logistics Management
Most businesses focus on getting a package from point A to point B, but what happens when a product doesn’t work out? While returns aren’t ideal, they’re inevitable in ecommerce and retail.
Reveel’s revolutionary PSM 2.0 technology provides comprehensive reverse logistics solutions, helping companies efficiently manage returns while minimizing costs. A well-executed reverse logistics strategy is crucial for manufacturers dealing with high product return rates or faulty products, ensuring faster processing times and reducing lost revenue.
Case Study: How a Manufacturer Saved Over $1 Million With Reveel
A leading industrial manufacturer faced rising shipping costs due to oversized package surcharges and DIM weight pricing. After implementing Reveel’s platform, they achieved:
- A 22% reduction in shipping costs by optimizing carrier selection and contract terms
- Better compliance with carrier agreements, reducing unexpected fees
- Improved shipping efficiency, leading to a 30% decrease in delivery delays for large packages
Solve Large-Scale Manufacturing Shipping Challenges With Reveel and PSM 2.0
Large-scale manufacturers face numerous shipping challenges, from rising costs to unpredictable disruptions. By leveraging Reveel’s PSM 2.0 technology, companies can optimize their shipping strategies, reduce costs, and improve overall efficiency.
Ready to take control of your parcel spend? Get in touch with our team and request a demo here.
