In this article we’ll guide you through points which will help you drastically reduce your shipping costs.

3 Hidden Shipping Costs and How to Avoid Them

A lot of people have a perception about shipping, it being the most strenuous task in a supply chain, demanding the management to be a notch more meticulous than they are required to be for other verticals, and to your surprise even our thoughts ponder on the same note. Shipping demands a lot more attention, as it’s the end stage of buyer fulfillment, stakes are real high and one wrong move can create a haphazard. What is more? It has the ability to polish or tarnish your chain’s image in the market.

In this article we’ll point out five inefficiencies that are adept in draining money from your shipping operations. These are areas you may not even think about — but, fortunately, they’re also relatively easy to adjust.

Here are the top three culprits:

Disorganized Pick-and-Pack Process

An inefficient shipping operation is time consuming, and we being proverbial know – time is money. The minute it takes to fetch labels, assemble boxes and other supplies can quickly add up to hours of wasted time.

Have a comprehensive look at your shipping modus operandi and consider where you can optimise the time required to put everything together. Main areas of focus could be – place and position of supplies, packaging facility being strategically placed to the next. In a nutshell, make whatever changes are necessary to speed up the process.

Not Factoring in Dimensional Weight Costs

Be well aware of what size box you are using to ship your items, because it might be costing you more. Shipping costs are based on the package’s dimensional weight — a measure that takes the box size into account. By using the right sized box, you can ensure that you aren’t overpaying to ship your package to its destination.

If you are outsourcing your shipping operations, then you must up-front have a word with your shipping service provider regarding the appropriate box size for your consignments.

Using the Right Cushioning for the Wrong Reasons

While you want to use quality protective materials to protect your shipments, it is quite possible to provide paramount protection at a much lower cost. For instance, if we talk about bubble wrap, ask yourself: Do you really need to stuff the entire box with bubble wrap? Is there a cheaper way to protect the product?

Undoubtedly it’s a good idea to wrap your product in bubble wrap, however you can fill the void of the box with crumpled newspapers or even air pillows, which are comparatively cheaper to use. This will dramatically decrease your cushioning expenses, while still protecting your product.

In conclusion, we’d like to plug the importance of shipping cost optimization and would suggest that you take your supplier in confidence and encourage him to proactively engage in shipping processes, using his expert insights about the subject.

Leave a Reply