Cut your shipping costs: A New Year’s resolution
As the holidays pass and the busiest part of the shipping season comes to a close, it’s a good time to look at your company’s parcel spend and understand how you can start to reduce your shipping costs without compromising on-time delivery requirements and quality. Here are some tips that can help cut your shipping costs and increase your profits.
- Negotiate with multiple carriers. Get rates from all viable carriers and leverage this knowledge to negotiate the lowest possible rate. Today major carriers are all fighting to get a piece of your business.
- Consider a regional carrier. Regional carriers, such as Spee-Dee Delivery Service in the Midwest, OnTrac in the West, LaserShip in the East, and LSO in Texas, continue to gain traction as many shippers are discovering the savings and advantages these carriers provide. Regional carriers often provide the same services as FedEx or UPS at a reduced cost.
- Rate shop. Rate shopping between your selected parcel and LTL carriers gives you the power to choose the best value with every shipment and simplifies your transportation decisions. Make rate shopping an automated and calculated financial decision with each package, instead of leaving it to guess work.
- Take advantage of automation. Boost efficiency and trim costs by using software and systems that automate the parcel shipping process. Automation can help reduce workforce requirements, streamline document production, increase order accuracy and easily handle spikes in demand.
- Design packaging with “dim” weight in mind. Proper packaging has never been more important than today. The switch to dimensional weight pricing by FedEx and UPS has the potential to substantially increase your shipping costs. Designing your packaging with dim weights in mind can transform your shipping costs across the board.
- Better Collaboration. It’s essential to share information and work together within your own organization. Opportunities to streamline and integrate your shipping information with other business processes can reduce data-entry, help in consolidating shipments and empower customer service with real time order information.
- Capitalize on technology. Investing in technology is a top strategy to improve competitiveness and efficiency. Whether its multi-carrier shipping software, inline scales and dimensional scanners, automated systems, or smarter packaging systems, technology is essential in positioning your company for continued growth and profitability.
It’s imperative you do not become complacent. As time goes on and shipping trends change, so should your processes and cost saving strategies.