June 11 2010 10:07 AM

Want to know how UPS and FedEx more than doubled their profits last year during the worst recession since the great depression? I'll tell you through the generosity and benevolence of America's top executives! Are you among the list of kind contributors?

Here are 10 ways you helped increase UPS/FedEx profits (and lowered yours):
1. You got bamboozled into thinking you needed to give all your business to one carrier to get the best rates.
2. Your company paid the UPS/FedEx invoice without reconciling each shipment. Yes, you did.
3. You gave your employees a blank check to spend at will on UPS/FedEx.
4. You tried but couldn't enforce employee shipping policies although you knew it would cut costs.
5. You didn't benchmark or compare UPS/FedEx rates vs. what other companies paid.
6. You allowed FedEx/UPS to deploy their technologies, such as Worldship and Ship Manager, which are designed to increase their profits but not help your business Ship Better or Save Money.
7. You felt helpless to combat new carrier fees so you left it up to someone else to deal with and they didn't! These fees now represent 15% of your entire invoice and you are blissfully unaware.
8. You allowed your product to be shipped without the correct addresses. Shame on you!
9. You left the contract negotiations up to an employee who had a relationship with the carrier rep. That cost you big time.
10. You believed the carrier rep when he/she said "you have the best deal."

Congratulations, you are contributing to the growth of the American economy. But you are also helping UPS/FedEx raise profits at the expense of your own!

The fact is most CEOs don't understand shipping, don't want to be bothered and leave the decisions up to others within their own companies. The consequences are an increase in shipping costs. Want some advice on how to save money? Reach out to a logistics professional and allow them to show you the many ways to save so you can be more profitable.
Jim LeRose ("The Freight Spend Assassin") is founder of LeRose Systems LLC, Principal of Agile NYC Metro and has been a transportation industry consultant for 25 years. His clients have saved millions on transportation costs. Agile has helped companies such as JP Morgan, Audiovox, Intuitive Surgical, Audiovox, Panasonic Electric, Petco and over 1,000 others. Jim welcomes your comments and can be reached at jim.lerose@agile-network.com or 888-214-1763.