Efficient shipping is more than merely faster shipping. A recent report by McKinsey & Company shows that consumer preferences have evolved to place more emphasis on shipping costs, transparency, and flexibility. An effective shipping management strategy will help you to address all of this by helping you to reduce costs, improve customer satisfaction, and streamline operations. The five tips below will provide a roadmap to shipping success and help you unlock your profit potential.
Before we get started – we’ve put together a detailed Freight Profitability Handbook outlining our top tips for improving your business’ bottom line with simple-to-implement shipping efficiencies and cost savings. In this handbook, you will also discover examples of how MachShip can support your business to achieve more with less. Be sure to access this free resource below!
1. Use technology to improve visibility and drive shipping efficiency
One of the most powerful ways to streamline your movement of goods is through the use of real-time tracking and automation tools. With a centralised platform, businesses can:
- Automate manual tasks like inventory management
- Increase productivity and accuracy
- Monitor the entire shipping process
- Make better business decisions
- Enhance the customer experience
It allows you to identify areas for improvement and potential bottlenecks in your processes. It can also help you proactively manage any potential problems that may arise during the shipping process, such as unexpected shipping delays or shipment discrepancies.
With the MachShip platform, you can quickly view all tracking statuses — including late consignments and proof of delivery — and take proactive measures in real-time. Whether you work in eCommerce, manufacturing, wholesale distribution, or transportation – having a consolidated view of your entire freight logistics function allows you to save significant costs in the form of labour, incorrect decisions, and human error.
2. Achieve cost-effective shipping with access to better data
Reducing shipping costs is one of the biggest challenges companies face right now. It can also be one of the easiest (and fastest) ways to improve the bottom-line profitability of your business. Using the right tools, you are able to reclaim lost profit margins and free up more capital for other areas of your business. This can be achieved through:
- Optimising shipping routes
- Automating manual tasks
- Negotiating a better shipping rate with carriers
The first step in the process is having access to the data you need to identify trends, uncover opportunities and make informed decisions. With MachShip, you are able to access this data in one place and significantly reduce the cost of shipping with:
- Visibility on whether your team are selecting the best shipping carriers
- The ability to instantly view carrier performance
- Supporting data to negotiate more competitive shipping rates with carriers
Ready to start reclaiming your profit margins?
Download our handbook “Unlock Your Profit Potential: The Power of Visibility in Freight Management” to discover our roadmap for reducing shipping costs and improving the bottom-line profitability of your business.
3. Select the right shipping carrier every time with better selection tools
Effective decision-making on transport options (for every shipment) is crucial to the success of any freight management operation. The right carrier can help reduce shipping costs, speed up delivery times, improve customer experience, and ensure the safe delivery of your goods. While the wrong carrier can leave you with deflated margins and dissatisfied customers.
The challenge is that there are many variables to consider and it generally requires significant time (labour costs) jumping between different systems to access and compare the most up-to-date shipping fees.
That’s where the MachShip platform comes in. By considering all the key factors and using technology to gather data and insights, you can make informed decisions about carrier selection in seconds (not minutes or hours).
With MachShip you can consolidate your rate cards in one place and easily put your transport options against each other (including hidden costs like fuel surcharges) and make the best decision. This lets you have complete confidence in your choice and ensure you select the right carrier for the job every time.
4. Reduce labour costs by automating manual tasks
Labour costs can be a significant expense for companies that ship goods — but it doesn’t have to be that way. The most effective way to reduce these costs is to minimise the amount of manual labour required. This can be achieved through the use of technology and automation, as well as by adopting better processes for increased efficiency.
Did you know on average a MachShip user saves 10 hours per week fielding tracking-related calls from their customers?
MachShip can play a key role in reducing labour costs associated with the customer service department of your business. It can also help you reduce time spent on things like invoice reconciliation and credit requests from carriers (due to overcharges)
By using MachShip to automate manual tasks, you can save the time and money required to respond to customer inquiries, resolve issues, and provide updates on shipment status. This can help to improve operational efficiency and reduce costs.
5. Drive up profitability by elevating the customer experience and lifetime value
The experience a customer has after placing an order can have a significant impact on their overall satisfaction and the likelihood of repeat business. In today’s competitive marketplace, you must deliver a positive post-order experience in order to stand out from your competition and build strong, long-lasting relationships with your customers.
It’s essential to provide timely updates on shipment status as well as quickly (and accurately) respond to customer inquiries related to shipping. Using MachShip, you can achieve this and even take it a step further by making it easy for customers to track their own shipments (further reducing customer service labour costs).
You can also send automated email and SMS tracking notifications that keep them informed at every step of the post-purchase journey. The MachShip platform also helps your business and your customers with this as it allows users to:
- Calculate estimated delivery time based on carrier performance
- Deliver up-to-the-minute tracking for orders
- Send proof of delivery confirmation
If you’re ready to discover more ways that MachShip can help you improve your standard shipping and customer touchpoints and grow your profit margin, be sure to get a copy of our detailed roadmap below.
FAQs
What is a shipping management system?
A shipping management system refers to software that helps to streamline multiple shipping processes like managing shipping fees.
How can I make the shipping process more efficient?
Here are some best practices for improving your shipping process:
- Analyse demand, order patterns, and seasonal trends to ensure you always have available shipping carriers
- Use a tool that offers real-time shipping updates and inventory management
- Improve your warehouse management processes
- Centralise the communication between the warehouse, shipping companies, and customer support teams
What is the key to successful shipping management?
There are various key elements to improve shipping management. These include effective supply chain management, technology integration, and strategic allocation of resources to manage shipping fees.
What is the shipping management approach?
The shipping management approach involves planning how you’ll transport goods from the supplier to the customer. It covers several aspects such as identifying the best shipping methods and which carriers and routes will be right for your business.
What is a shipping strategy?
Shipping strategies refer to the plans that you use to improve the process of shipping products to customers. It involves improving the overall shipping process while finding ways to save money on shipping costs.
How do you become a better shipping manager?
To become a better shipping manager, focus on improving your organisational and leadership skills. It’s also a good idea to brush up your knowledge of inventory protocols and identify procedures and areas that can be improved, like expedited shipping or delivery options.
What are the 4 stages of shipping?
The shipping cycle usually has the following four stages:
- Trough (low freight rates and demand)
- Recovery (demand and freight rates start to increase)
- Peak (high shipping costs)
- Collapse (supply exceeds demand and freight rates start to decrease)
What is the function of shipping management?
Shipping management is the process of overseeing that goods move efficiently through the supply chain, whether that’s by air freight, sea freight, or another popular shipping method.
How do you avoid shipping mistakes?
The following best practices will help you reduce shipping mistakes, ensuring a smooth delivery process:
- Weigh the packages accurately
- Ensure that you use the correct packaging materials
- Double-check that all packages are labelled clearly and correctly
- Use software that can automate tracking and provide clear visibility over the entire shipping process