10 tips for improving your business’ shipping department

Business News | 30 Jul, 2019 |

Are you starting to go crazy from all the packages that you still need to ship? Are your raw materials taking time to come to your production facilities? If this happens much, shipping is your problem then.

Modern shipping is evolving as we speak. Changes in your shipping mean a more efficient supply chain. This means more profits down the line.

If you want to improve your shipping department, there are different ways to do it. What should you do?

We’re here to help you out. In this guide, we give you 10 tips for improving your business’ shipping.

1. Change for Cost-Effective Shipping Practices

Cost-effective shipping practices is always important if you are a small business. If you can cut down on the shipping expenses without suffering efficiency too much, that’s great.

First, you can try to get less than truckload freight shipping if you have smaller deliveries. Any deliveries below 150 lbs will cost you a fraction of a full truckload delivery. As long as you pick the best courier service, you should be able to get more out of small deliveries.

2. Simplify Internal Shipping Processes

If you want to make simpler work of your deliveries, it’s best to create a simpler internal shipping process. Try to identify which areas of your entire process work well and what does not. See why it works and why it gives you a problem.

Are you using fast delivery systems from warehouse to customer? Do you have the best shipping company for the job? Is internals too chaotic and needs system change?

An introspective dive can give you a good idea of what changes you would need to do.

3. Improve Warehouse Communication

Warehouse communication is a vital aspect of any shipping process. It is a valuable step in making sure you have an efficient supply chain, as they have all your goods. Make sure that communication with them is clear, crisp, and does not create failure states.

Talk to the people on the ground on how the process on the warehouse works. See if there are things you can do to ease the process for them and improve their efficiency. There’s no point is having the best courier service if your problem is internal.

4. Negotiate Shipping Costs

Let’s say you’re using major shipping companies like USPS and FedEx. It doesn’t mean that they have standard shipping that everything stops there. If you want to get more out of your shipping department, you can negotiate shipping costs.

Businesses can create favorable deals as long as they have something to offer. If you have big enough shipping on a consistent basis, you can make deals with your courier. This will save you not only time but money as well.

5. Find the Best, Most Favorable Shipping Policies

if you’re in a specific type of industry, you know your products more than anybody else. You know the quirks and the problems that your device might encounter through shipping. If you want to create fast delivery systems, make sure the courier has favorable policies for your products.

Make sure that you’re not shipping dangerous goods across different countries. The best shipping company will inform you if there is a problem with your shipment beforehand.

6. Prioritize Shipping Speed

Let’s assume that you’re not sure where to start with your shipping team. Which areas should you optimize to get more out of the best courier service? Where you can, prioritize shipping speed among everything else.

Having your products shipped using fast delivery systems builds a strong relationship with your customer base. You want to balance this speed with the cost too. Sure, you can save a bit more if you delay, but that’s at the cost of a lower lifetime customer value.

People care about getting their orders fast. If you have to optimize one factor in your shipping, faster times is always the top priority.

7. Tweak Shipping Elements for Efficiency

If you want to create more efficient shipping for your business, play around with different shipping elements. The best courier service will change their rates according to:

• Speed and priority

• Product shipping volume

• Size and weight

• Location of destination

Optimize these elements and tweak them as needed. Lower speed and priority will cost less. Even then, if the up in cost is low enough for the extra speed, this will be worth it down the line.

8. Work with the Best Courier Service

Many businesses don’t need to hear it from others, but some need this reminder. If you want a stable, more efficient shipping, make sure to work with a reputable courier service. They don’t have to be the best shipping company – only that they work for your needs.

Working with a fly-by-night shipping company to save a couple of bucks will cost you down the line. You want a team that is not only reliable but can handle pressure situations. Once your business comes to a peak point and your shipping service flubs, you’ll suffer.

9. Reduce Your Shipping Zones

For businesses with physical stores or branch locations, there’s a good trick to cutting costs. Shipping companies will charge you extra for every extra shipping zone you add. Where you can, make sure to put your business near where customers are.

Calculate the cost of shipping to a warehouse in locations where you will get to serve your customers best. Subtract this cost from the savings you get from reducing shipping zones. Consider the rental period of the warehouse.

If you’re getting positive numbers, go and restructure your logistics.

10. Optimize Your Warehouse

Arrange your warehouse and inventory. Store them neat and stack them in a logical manner.

Catalog the same items together and create a logical map of your warehouse. Where you can, put the items that move fast and in more volumes near the exit. Logical arrangements in your warehouse can result in fast delivery systems.

Improve Your Shipping Department for a Better Bottom Line

When it comes to optimizing your shipping department efficiency, there are many things you can do. 

From choosing the best shipping company to arranging your warehouse, small adjustments work. Where you can, find ways to uncomplicate your shipping as much as you can.

If you’re looking for more ways to improve your business, check out our other guides. Take a look now.

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