Three Shipping Cost Considerations

Everyone wants to shave transportation costs; it’s one of the largest expenses coming out of the warehouse. Unfortunately, it’s impossible to simply cut costs without affecting other important aspects of the shipping process, not the least of which is customer satisfaction. This post will help you to take into consideration three factors to ensure cost cutting measures are well planned and effective.

Transit Time

Perhaps the first item to consider when analyzing how to lower shipping cost is how it will affect transit time. The relationship between cost and transit time can be simplified to the following statement; lower cost, longer transit. You’ll want to strike the right balance in terms of cost and speedy delivery. For low weight packages, the USPS Priority Mail product is an excellent mix of low cost and short transit time.

Carrier Selection

Carriers have different advantages and disadvantages based on what you’re shipping. Utilizing just one carrier will not only limit your ability to maximize the strengths and minimize the weaknesses of each, it will limit your ability to effectively manage shipping costs. Implementing a mix of carriers allows the shipper to pick and choose, depending on package weight, dimension, distance, and customer preference, how to most effectively ship a package with regard to cost.

Technology

Technology can help ensure you are paying the lowest amount possible per label, all things considered. Based on all of the shipping criteria mentioned above, producing the right label can be a tricky task for an individual, and take several minutes per package. In order to make the right shipping decisions, in a matter of seconds, every time you ship a package, multi-carrier rate-shopping technology is a must. With a few simple clicks, you can always choose the right mix of transit time and carrier at the lowest cost available.