Switching to another carrier during an ongoing operation

When we at 4SCM were tasked with optimizing a client's logistics and shipping processes when switching from DPD to FedEx, it was much more than just changing a carrier. It became an extensive integration project in which we had to go through multiple steps to ensure smooth processes, better cost efficiency and scalability.

The challenge

The client decided to switch from DPD to FedEx as part of a cost-cutting strategy. FedEx offered more competitive rates, and it soon became clear that properly integrating their services into the supply chain would contribute to both price advantage and efficiency. But this did not simply mean "replacing carrier A with B," a technical approach was needed to implement FedEx seamlessly into the client's existing systems. For us, the challenge lay in building a solid integration that could handle everything from shipping data to document management for customs, keeping in mind different shipping methods, weight classes, dimensions and international shipping requirements.

Identify needs and develop an appropriate solution

We started with a clear conversation with FedEx to understand their preferences around data processing and information exchange. There were several options for delivering shipping data, so it was important for us to determine which method best suited our client's workflow. Depending on the destination country, different shipping methods, documents and customs rules applied. For example, a shipment within the EU requires very different documentation than a delivery to Switzerland or a country outside the EU. The complexity of the product range also played a role. Some shipments consisted of standard pallets, others involved special dimensions - think long pipes or extremely heavy equipment. Each type of shipment had its own requirements and regulations. We had to make sure our solution could handle all those variations.

Documentation and customs: handle it yourself or outsource?

An important part of the integration involved customs clearance documentation. FedEx stressed the importance of correct and timely delivery of additional documents for certain shipments. Although FedEx was willing to take on this customs documentation, provided everything was delivered in advance, the customer preferred to manage their export and import declarations themselves. We therefore developed a solution that made this possible, without sacrificing workflow to FedEx. We implemented an existing FedEx module in which the customer could upload documents up to seven days after shipment - ideal, as in practice immediate delivery is not always feasible. Thus, we offered a flexible system that deals with the realities of the shop floor.

Technical challenges: the multi-parcel issue

Another challenge we ran into was the so-called "multi-parcel shipment" issue. That sounds simple - multiple packages to one order - but in practice it is not. FedEx wanted to know in advance how many packages were in a shipment, whereas that number often becomes clear only after everything is packed. We adapted the system accordingly. We developed a function that allowed a shipment to be registered in advance, while the final number of packages was only entered once everything was ready. This allowed FedEx to efficiently adjust their system and treat multiple packages as one shipment.

The importance of weight and dimensions

A key lesson from this journey was how big an impact package details such as weight and dimensions have. For example, a small box with heavy components changes shipping classification, which in turn affects price, handling and documentation. FedEx has strict guidelines for this, which do not always match how our customer was used to defining "a package. We therefore developed logic in the system that distinguished between regular packages and heavier or abnormal shipments requiring special attention. Although during this project we focused on technical issues such as label printing, data integration and handling multi-parcel shipments, the greatest value was in the insight we gained together with our customer. Many companies underestimate the complexity of logistics: from international regulations to special requirements for heavy or urgent shipments. Our goal was not just to implement a new carrier, but more importantly to give our client a better understanding of their logistics processes. By working closely with FedEx and our client, we were able to develop a custom solution that really worked.

4SCM as a partner

This project shows that companies like us and FedEx are not just service providers - we are partners who help navigate the complex world of logistics. So that our client can focus on what they do best: grow their business. Our most important message? Don't choose on price alone. Choose a logistics partner that understands how the process works, thinks through potential bottlenecks and makes sure everything runs smoothly - every time.