It may be easier to ship a product, but for the shipping company the responsibilities begin just there, and it is not easy! The process of shipping a customer’s product from its point of origin to its final destination is fraught with innumerable obstacles to deal with such a package that is damaged or lost during transit, any other hidden fees that you may not be aware of, and of course, the most difficult process of them all is wading through the huge pile of paperwork that is required for customs and ensuring your product is cleared for shipment, getting your taxes in order, and then understanding and figuring out the logistics.
Efficiency and discipline is paramount in this industry, but these are the very issues the industry is also battling amidst growing competition. However, all these challenges can be handled effectively with better planning and employing a few tips to make it a hassle free experience.
Handling Shipping Challenges
Almost every business enjoys both a local demand as well as an international demand. It does not matter that your business may be targeted locally, but there may still be potential customers abroad who may need such products. This means that you need to be ready for international shipment, which requires a host of documentation for custom clearance, choosing the right carrier from among a dozen of them available in the market, and making sure the duties and taxes that have to paid or that has been paid is well accounted for. If you are unsure of how much your international shipment is going to cost you, then worry not because there are online calculators that larger courier companies offer customers to keep things transparent and help them plan better.
The factors that influence shipping costs include the weight of the package, dimensions, country of origin and the destination country along with the insurance for the product. With the burgeoning shipping industry, the need to stay on top of the competition also becomes a major focus of businesses. However, this leads to unsustainable practices, not because of oversized fleets that cut-down prices for the shipper, but largely because in the long run, it creates instability and affects carrier services.
The trade-off for lower shipment prices comes at a heavy impact on the overall supply-chain management. To combat this, a shipment company can adopt structured practices where the shipments are consolidated in smaller fleets. Consolidation brings positive benefits such as cost-cutting and enforces greater discipline in the way shipping companies organize their delivery. When there are an optimal number of people involved in the supply chain, it leads to effective decision making and coordination including identifying pain-points in the entire chain.
Harnessing the power of technology to the shipping company’s advantage such as configuring the best routes possible, keeping data centralized and accurate is also crucial for effective decision making and ensuring that it is cost-effective and efficient for both the shipper and the shipping company. Further, when shipping companies partner with each other for ideas and betterment of services, tackling issues can become a learning process.