Navigating the world of shipping can be hugely complex. From finding the right carriers to ensuring that packages are delivered promptly, there are plenty of moving parts that can go wrong. Understanding common shipping pitfalls can significantly aid your company’s shipping strategy and catapult you toward lasting success.
Here are some of this year’s top shipping mistakes to avoid.
A limited number of carriers. There’s no denying that large national carriers can help increase a retailer’s operational efficiency. But when was the last time you evaluated your carrier mix to see which options exist? You’re likely tapping into national carriers for around 80% of your freight volume, but you might have difficulty with the remaining 20%. With 97% of U.S. truckload carriers operating with 20 or fewer trucks, it can be difficult for large carriers to deliver to niche locations.
Companies should evaluate their parcel programs regularly to ensure they’re maximizing capacity, speed, and cost. Carrier diversification and the use of smaller, regional carriers can help you deliver efficiently to remote locations, in addition to ironing out issues surrounding inconsistent demand and short lead times.
Use of a third-party logistics (3PL) provider is an ideal way to begin incorporating multiple carriers into the mix, increasing shipping elasticity and transportation options. You’ll be able to maintain a single relationship with the 3PL while it works directly with national and regional carriers on your behalf.
On-premise or outdated technologies. Advanced technology has infiltrated every industry imaginable, and the shipping industry is no exception. Modern inventory management systems, application programming interfaces (APIs) and other cloud-based systems offer long-term benefits in the logistics and shipping space. Companies today have no choice but to keep up with the pace by leaning on this technology.
If you’re currently using outdated technology or technological systems that don’t communicate with one another, the result could be miscalculated shipping times, inconsistent consumer demand, and automation issues. Such problems ultimately taint consumers’ experience with your brand, potentially discouraging them from placing future orders.
Modern shipping technology can lay a strong foundation in harnessing data, leading to optimized routes, external systems integrations, faster fulfillment, more automated tasks and overall reduced inefficiencies.
Lack of shipping data. From finance to healthcare, big data is an ever-growing part of industry operations. As ships and trucks make deliveries, they provide data that’s aggregated into cloud technology and can be utilized to help shippers adapt quickly to new environments.
Big data in the shipping industry can:
Inaccurate weight or classification. If you classify a single package incorrectly, it isn’t a huge financial loss. But multiply inaccuracies across hundreds of thousands of packages and you’ll quickly realize how expensive this problem can be. Shippers want to send packages as cheaply as possible, but forcing packages into inappropriate weight ranges or classifications will only cost more in the long run.
The choice of the correct weight and speed can also impact the safety of each shipment, as it helps ensure that trucks are properly loaded, with weight evenly distributed throughout. Take the time to accurately weigh shipments and classify them properly for consistent and affordable deliveries.
Wrong shipping addresses. This also results in out-of-pocket costs to the shipper. Even the smallest change in the package’s zip code, state code and the like can have a huge impact on cost, especially if the package is being shipped internationally.
Triple-check that each package is properly addressed, to save money and uphold your brand’s hard-earned reputation.
Peak shipping season is right around the corner. By addressing current weak points in your shipping approach now, you can make for your most successful shipping season yet.
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At LFS, we provide tailor-made logistics solutions to manufacturers, distributors, importers, and exporters across the United States, Canada, and Mexico. We are a 3PL company lead by a team of experts who will help you evolve your logistics through advanced technological platforms, providing you great efficiency, cost savings, and delivery speed in every shipment.
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By: Supply Chain Brain
August 24, 2021
