An inefficient shipping process or inadequate product storage solution can end up costing much more than many organizations might expect. Businesses seeking ways to curb their spending and keep overhead costs from getting out of hand would do well to reassess their current shipping methods and examine their storage policies. The following list serves to highlight some of the most common situations where waste and inefficiency may end up creating unnecessary financial strain.
1. Splitting Large Orders Into Multiple Shipments
The labor and logistics costs of shipping can often be just as significant as transportation-based expenses. Failing to consolidate all products into a single order is a common oversight, one that may soon find shipping costs growing out of hand. Other shipping solutions, such as electing to do business with the best service provider or automating as much of the product shipping process as possible can also help to reduce or eliminate instances where a single large order may be split into multiple smaller shipments. Consolidating all orders can often go a long way towards reducing the additional labor and logistical expenses that may be driving up shipping costs.
2. Failing to Automate the Shipping Process
Relying on an outdated process to package, prepare, and ship products is rarely the most efficient solution. Software that is able to automate the administrative and logistical aspects of the shipping process helps to keep expenses as low possible by minimizing labor costs while simultaneously ensuring more accurate and consistent results. Many businesses are often surprised by the degree of savings made possible thanks to barcode scanners, inventory tracking software and other resources that allow for enhanced automation. The greater ease and reduced expense with which businesses are now able to automate core aspects of their operations is a trend that organizations can expect to see a lot more of in the days ahead.
3. Truck Accidents and Other Mishaps
Shipping services that have poor safety records could wind up being a costly liability. Truck accident may compound shipping costs in more ways than many businesses might expect. While having to pay out of pocket in order to replace any goods that were damaged directly during truck accidents, many service providers will typically pass the costs associated with a collision, accident or other mishaps on to their customers in the form of higher service costs. Learning more about the safety record of any courier service, shipping option or transportation provider in an effort to seek out those who have done all they can in order to promote safe practices and minimize instances of truck accidents and other mishaps may allow businesses to further minimize their shipping and service costs.
4. Selecting the Wrong Size Unit
Shipping is not the only aspect of the production and distribution process that may end up costing businesses more than they can afford. Storing production and merchandise off site can quickly become an expensive proposition, especially when businesses fail to select an appropriately sized storage unit or a warehousing option able to accommodate sufficient volume. Production and storage needs can change based on concerns like fluctuating demand for a product or the future growth and expansion of a business. A storage solution that is able to meet a business’s current needs may not always remain viable in the future and businesses would do well to assess their situation from time to time. Dealing with a service provider who is able to offer scalable storage solutions helps to ensure that any potential issues that may develop are able to be dealt with more efficiently.
5. Storage Vs. Disposal
Another way to decrease storage costs is to use less storage. There are plenty of situations where businesses may be better served by eliminating excess production, unwanted merchandise, and any other resources that may not be cost effective to store. While disposal may not be the best solution for most circumstances, there are times when it may become necessary. Businesses should assess the potential savings and total costs of both storage and disposal in order to ensure that they are able to make more cost-effective decisions when the situation demands. Paying to store even valuable merchandise for months or years could lead to additional costs that businesses would just as soon avoid.
The shipping policies, practices and service needs of a business are rarely static. Taking stock of what aspects of their existing shipping process work and which may benefit from improvement can provide valuable insight. From consolidating orders to knowing when to simply get rid of excess production, there are plenty of ways that businesses can create a leaner, more efficient and more cost-effective shipping process. Identifying and addressing the issues that are resulting in needless additional expense could allow businesses to save far more than they might have imagined.
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