Despite us living in the age of overnight deliveries and cheap air freight, logistics is still a problem for most companies. It may be possible to send products halfway across the world in just a few days, but doing so for large volumes and still keeping to a budget is the real challenge.
Shipping is very complex, and mistakes have serious consequences. A significant disruption in the supply chain can make operations grind to a halt, and cost a company huge losses. This is why you want to eliminate as many risks and difficulties as possible.
What can you do to make shipping easier and more affordable for your company?
Limiting Shipping Options
Many businesses offer their companies various shipping options, each with different prices and speeds. While this is tempting, shipping costs increase drastically with every option you offer. This is because the carriers must work harder to accommodate your needs, and this increased logistics burden translates into higher charges.
For smaller and medium sized companies, it’s often beneficial to limit shipping to one choice. This allows you to negotiate lower shipping costs with your carrier, and you can then pass these savings on to the customer. A good way to do this is by fully subsidizing product returns, so that buyers can shop with confidence.
Another approach is to eliminate waste in employee routines. How much time do workers spend walking between different areas, instead of picking and packing items? Are products mixed together, making it difficult to find things? Have you streamlined the creation of courier labels like Unimax yet to save time and reduce error rates?
In addition, you may want to reconsider having a different shipping configuration for each product. Many items in your inventory probably have similar weights and volumes, so you can sort them into generalized categories. This may cost you a bit more in freight, but the time saved and faster fulfillment more than makes up for it.