In the complex world of parcel shipping, general rate increases and dimensional-weight recalculations can silently erode profit margins for small-package shippers. The often-overlooked DIM-divisor and minimum-charge creep are key culprits in this scenario.
DIM-divisor changes can significantly alter the cost structure of shipping, leading to unexpected expenses. Similarly, minimum-charge creep can gradually increase the baseline cost for shipments, impacting overall profitability.
An effective audit process can identify these hidden costs early, allowing shippers to adjust strategies and maintain their margins. By leveraging transportation intelligence and freight audit solutions, shippers can gain visibility into these cost drivers and take proactive measures to mitigate their impact.