Smarter supply chain solutions.

New and Permanent Ways to Reduce Shipping Costs

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I. Reduce air in your packages:

  1. Get and keep deadly accurate product item master dimensions so your cartonization software actually works. This works well for pre-made cartons and manual packaging, but it also helps improve automated on-demand cartonization and paper mailer systems. There are 4-5 different strategies here, all customer dependent. ROI is typically in weeks.
  2. Evaluate on-demand cartoning and/or paper mailer systems. There are a lot of good options, the key is understanding what is best for YOUR operations and supply chain. ROI based solely on shipping cost reduction through right-sizing is typically 3-6 months.
    • Having accurate product item master data will move the needle here; it ensures you send the right orders to the automated systems.
    • Average air in packages is approaching 60% Shipping air now costs more than shipping products.

II. Get and keep deadly accurate package dimensions and weights on all your orders:

  1. The carriers will reward you by not charging shipping charge corrections (SCCs). There are a few strategies here, all customer dependent.
  2. Accurate package dimensions will dramatically drive the efficiency of rate shopping. Rate shopping is no better than the data you feed it.
    • Accurate rate shopping can now be done between automated on-demand packaging and labeling.
    • You can know the exact shipping cost per order before it leaves your machine. Data is key. Data is power. Know more than your carrier.
  3. This strategy also works for LTL; your load is just a big package.

Customer Experience

Greater sustainability, smaller packs, less fillers, speed of delivery, and lower shipping costs will drive a better customer experience.

John is responsible for company efforts to drive value and differentiation in packaging for fulfillment, e-commerce, and manufacturing customers. He has 25 years of packaging leadership experience and has served at the helm of IQpack since early 2013.