A process within warehouse management systems where multiple shipping carriers and service levels are automatically compared in real-time to identify the most cost-effective or service-optimal shipping option for each order. The system evaluates factors such as shipping costs, delivery timeframes, carrier reliability, and service requirements to recommend the best shipping method.
Rate shopping is crucial for controlling logistics costs while meeting customer delivery expectations. By automatically comparing options from multiple carriers like FedEx, UPS, and USPS, warehouses can reduce shipping expenses by 10-30% while ensuring appropriate service levels for different order types. The system considers package dimensions, weight, destination, delivery requirements, and negotiated carrier rates to make optimal selections.
For example, a WMS might automatically select ground shipping for non-urgent orders to minimize costs, while prioritizing expedited services for time-sensitive shipments. Advanced rate shopping engines can also factor in carrier performance metrics and delivery zones to optimize both cost and reliability across the entire shipping operation.
