3 Tips to Manage Your Shipping Costs

26. April 2017 0

If you’re like most businesses, you probably don’t think about fulfillment as an area of your business that can be optimized, but the truth is that there are several things you can do to better manage your shipping costs.

Ask yourself, do any of these scenarios happen in your organization?

  • Your customer service representative adjusts the shipping on an order after a customer complains.
  • A supplier fails to fulfil an order on time forcing you to miss deadlines and compensate consumers out of your own pocket.
  • A carrier damages or misplaces a shipment hurting your business’ reputation and tying up valuable internal resources.

All three of these scenarios have something in common, each one adds to your overhead and affects your bottom-line. In an era where organizations can’t afford to flush money down the drain, the reality is, you need to stay on top of your shipping costs.

The good news is that with a little effort you’ll be able to identify inefficiencies (both internal and external) and drastically improve your supply chain.

Here are three tips to better manage your shipping costs:

Ask yourself “Does this need to arrive tomorrow?”

We all know that Amazon is leading the charge with 2-day and even same day shipping options, but what many businesses fail to consider is that not all deliveries need to reach the customer that quickly.

Organizations often fail to evaluate whether offering faster shipping adds noticeable value for consumers. You shouldn’t be afraid to experiment with different shipping timeframes to determine whether the extra cost of overnight is improving the customer experience.

Find a shipping partner that aligns with your internal procedures.

Companies don’t operate as silos anymore, and fulfilment companies are increasingly becoming an extension of the businesses they serve. This means that should be picky about who delivers your products and ensure that their procedures match your own organization’s procedures.

A good shipping partner can make a huge difference for your company whether it’s an SME or enterprise organization so be sure you take the time to understand how they operate. In the end, you want your fulfilment service to feel like it’s YOUR fulfilment service.

If things go wrong, ask why they didn’t work out as planned.

When you look at outcomes with your shipping company, you probably rely on a few core performance indicators (KPIs) such as on-time delivery and total transportation costs with the rest falling by the wayside. Don’t be afraid to dive deeper and figure out what went wrong.

By capturing the right data and asking the right questions you can peel back layers of your fulfilment program and make meaningful changes.

In the world of fulfilment, tweaks and patches may let you fix little problems across your supply chain, but to get the best results you need to take the time to look and identify what can be done to make the process more efficient for your business.

How do you handle fulfilment in your business? Are there any tips that we missed? Reach out in the comment below and share your thoughts!


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