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Parcel shipping is one of the fastest-growing cost centers in modern fulfillment ...and not just about carrier rates! In this episode of The Automation Journey, Marissa Dierlam (Head of Marketing at TGW North America) sits down with Dexter Weber (Business Development Manager at TGW North America) and Jennifer Saunier (Vice President of Business Development at Green Mountain) to break down what’s driving parcel cost increases, the operational blind spots that trigger surprise surcharges, and how warehouse automation can unlock savings across both parcel spend and warehouse operations. You’ll learn how factors like fuel surcharges, dimensional weight (DIM), packaging decisions, and service-level expectations impact shipping costs. We also dive into parcel spend management (PSM), contract negotiation strategy, and how network design decisions (DC locations, consolidation, and inventory placement) can save millions while also improving customer experience. If you’re responsible for fulfillment, logistics, distribution, or transportation strategy, this episode is packed with practical insights to help you reduce parcel costs, improve operational efficiency, and build a smarter shipping strategy! Chapters 01:52 - What’s driving parcel cost increases 05:15 - Misconceptions about rising parcel costs + the value of advisory partners 08:58 - Picking/packing strategies that influence shipping cost + right-size packaging 12:34 - Biggest fulfillment blind spots (returns, damages, wrong item, wrong address) 14:30 - What Green Mountain does: Parcel Spend Management (PSM), audits, RFP support 16:21 - Negotiating carrier contracts 19:10 - How warehouse automation reduces parcel pain (speed, accuracy, packaging, labor) 21:48 - Automating one facility vs scaling savings across the network 23:21 - Network redesign case study: DC locations saved $17M/year 25:08 - What to measure: contracts/RFP timeline + cost-per-unit after automation 27:15 - What’s next: AI/ML in parcel spend + packaging tech + piece-picking robots 30:26 - Diversifying carrier mix (regional carriers, postal options) 33:49 - How to connect