Cost-effective shipping is a vital part of many businesses. If you're looking to streamline your business operations, we offer six actionable strategies designed to enable efficient options to reduce your shipping costs.
Depending on the way your business operates, you may find that one of these strategies delivers greater cost savings compared to the others listed in this article.
Good things often come in smaller, and less expensive packages. The right packaging for your shipments can reduce empty space and packaging weight, enhancing your bottom line. Selecting the right materials will help you balance protection and cost.
Reduce package size and weight to enjoy lower shipping costs, especially on international shipments where dimensional weight and overall weight are key factors in pricing. Less packaging also reduces waste.
Standardize your packaging to reduce shipping costs by lowering expenses related to procurement, materials, shipping, and storage.
Use appropriate packaging materials that are lightweight and still offer protection, such as poly mailers or padded envelopes instead of bulky cardboard boxes when possible.
How can your business significantly reduce per-unit shipping costs? By strategically combining orders, you can improve the efficiency of logistics operations and significantly reduce shipping costs. Optimizing cargo space also allows you to share transportation expenses. This is most effective for small- to mid-sized loads, multiple orders to the same location, or orders with similar delivery timelines.
Use distribution hubs or 3PL services for optimized delivery routes, reduced transportation costs, and improved delivery times. Distribution hubs act as central points for receiving, sorting, and distributing goods to various destinations. 3PL providers offer outsourced logistics services, including warehousing, transportation, access to advanced technology, and scalability to handle fluctuating order volumes.
Inventory forecasting is also crucial for effective consolidation planning. By providing insights into future demand, businesses can optimize inventory placement, improve transportation efficiency, enhance supplier relationships, streamline operations, and ultimately improve their financial performance.
Consider split shipments when it’s necessary to manage urgency with cost. Route optimization software and real-time data integration can also help you gain an edge.
Managing risk and damage in shipping protects your business from catastrophic losses. These are some key factors to consider to reduce shipping costs overall:
Proactive planning allows you to be more prepared. When you build buffer time into your schedules for customs, delays, and carrier issues, you create an environment for success. Plus, you can avoid expensive express shipping costs.
Planning ahead should also include conducting regular risk assessments, diversifying suppliers, and creating a contingency fund for unexpected disruptions. Using forecasts, route optimization software, and real-time data integration can also help you gain a competitive advantage.
Partnering with the right full-service logistics provider for your freight and customs solutions is essential for success. Seek expertise and support from professionals with experience in managing shipping risks. Ask the right questions to evaluate your potential partners.
The right partner can help you manage your flow of goods, streamline your operations, reduce shipping costs and enhance your logistics efficiency. You can leverage industry connections developed over decades of successful logistics operations to get access to bulk discounts, better route planning, compliance, and innovation.
Cole aligns with how your company works. If your supply chain operations change, we provide solutions tailored to help you adapt and thrive. Connect with Cole today.