The cost of shipping is by far the number-one expense in Shipping Parcel Management within Supply Chain, often exceeding the spend of facilities, utilities, wages, benefits or supplies. The forecast for this activity growth is that it will continue to rise exponent in the coming years and by 2020 cost especially same-day delivery will drive up Logistics cost.
Managing parcels for inbound and outbound shipping is crucial to an operative Logistics strategy. Proactive Parcel Management, including reverse logistics, demands constant understanding and improvement of the whole Logistics strategy. Unfortunately, knowing the difference between standard carrier rates, parcel hundredweight programs, and how to keep parcel spend under control remains a complex.
What Amazon brings to the table
Amazon and big boxes retailers have been setting the pace relating Omni-channel and e-Commerce; these giants are capable of offering low-cost or free Parcel Shipping Delivery. It is well known that the bar set goes higher each year, that is why shippers need to take into account what Amazon or Walmart giant retailers have done well to get up to where they currently are and apply these proven approaches to make them their own and get hold of a robust Parcel Shipping strategy.
Parcel Logistics is an intrinsically complex set of shipping practices that can make or break e-commerce, brick ¬and mortar, and Omni-channel success.
Proactive Enterprise Parcel Management
Inbound and Outbound Parcel Management - Outbound Parcel Freight Management - Parcel in Reverse Logistics, - Returns from any Party - Managing Parcel Spend - Parcel Audit, are some of the topics shippers must learn for a proactive enterprise Parcel Shipping Management.
1. Adjust your Parcel Shipping Logistics with e-commerce growth.
e-Commerce is continuing to grow. It has increased profits for parcel carriers, resulting in constant investment in their parcel skills.
2. Look at the investments that parcel companies make.
While UPS and FedEx are working on enhancing their services through new technology that would allow a customer to track their deliveries "using real-time maps," parcel carriers offer higher speed, better service, and smaller rate increases as a result of their investments.
3. Know the lanes and zones you’re using most.
When negotiating the best rates, it is essential to come prepared with data on the lanes, zones, and shipping speeds that you use the most, using an already designed tool or develop a reporting tool internally, so you can get the information needed.
4. Anticipate the cost of rate changes.
Before negotiations, anticipate the cost of a rate change on your standard parcel activities by operating a reporting tool to compare your current spend against general rate increases, potential changes to your current contract, and to compare rates across carriers.
5. Audit your parcel invoices.
Some companies manage the entire shipping audit setup, validate invoices, implementation, execution, and recovery process, reduce shipping costs, collecting money back from guarantees, agreement terms, dimensional weights.
Through the application of Logistics systems, they can help reduce your freight shipping cost and maintain your entire shipping operation run more efficiently, fulfiling your needs and facilitate way to save on your smaller shipments.
There are some other factors to take into consideration when choosing an enterprise to manage your shipping system investment. For instance: rate shopping preparation of international documentation, analysis of shipping data and enterprise-wide control from multiple locations like stores and suppliers.
Summing up: Parcel Logistics is an intrinsically complex set of shipping practices that can make or break e-commerce, brick ¬and mortar, and Omni-channel success. Enterprise Parcel Shipping Management system can provide significant benefits.
Dave Food
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