Today’s market place is more competitive than ever. It is not just a monopoly of a handful of key players, but has become a level playing field for all businesses irrespective of their size. The access to resources, infrastructure, and the ability to absorb financial fluctuations are some of the differentiating factors among them. Cost invariably becomes a crucial tipping point during major decision making.
The e-commerce business for example involves a tremendous amount of packaging and shipping products to customers. It does not mean that costs are automatically high, but what it draws our attention to is that by revisiting the processes and through continuous improvement, it is possible to refine your costs and make your returns on investment, more attractive both for your business and your customers.
Managing shipping costs
Depending on the nature of the business, it can be labour intensive or can be automated. Today, with the dearth of skills and resources, the cost of labour has been sky rocketing. With changing times and advanced technology available at your doorstep, it is a time to re-evaluate which aspects of your processes can be automated to cut down on the cost. There are a number of on-site packaging solutions available that you can leverage to bring down your overall costs by packaging your products in your own facility rather than sourcing them outside. In such as a case, even the overall logistics control and transportation becomes much more easier to monitor and manage.
You also have a host of materials to choose from since we are moving towards a more environmentally conscious world where customers are sensitive to carbon footprints. Studies have showed that a large percentage of wastage was generated from containers and packaging materials. The nature of the business environment also considers the social aspects along with the economic aspects to deliver optimal solutions. There are envelopes made from a certain portion of recycled materials, which in turn can be completely recycled. So doing your research in the kind of materials and packaging solutions are available is essential. Further, it also saves time, consumes comparatively less space, and improves productivity when you are especially dealing with high volume orders in seasons and time is money.
If you have been predominantly using boxes for your packaging and shipping, then choose the right size for the product and avoid paying for excess space or weight. Even better, if you can move away from the boxes to using bags or envelopes depending on the kind of shipment, then you will be able to restructure your overall costs incurred, even better. The costing in this case is based on dimensional pricing than the traditional method of going by the weight. Sometimes, it is the simple things that we overlook that contribute to the overall cost such as paying penalties for incorrect shipping address! Ensure you have a process in place to verify your shipping address. Finally, negotiate a good discount or pricing with your carrier or carriers. By identifying a carrier as your primary, you can also check for exclusive rates for your company.