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Shipping is one of the top expenses for e-commerce businesses. In fact, it can account for up to 25% of the total cost of an online order (only next to production at 30%). 

But most of the factors associated with production costs are under your control and can be easily cut down to see profits. 

Shipping, on the other hand, is a task that is outsourced to a third-party shipping carrier and is filled with events that happen out of your control. This can lead to excess shipping costs that have the potential to eat into your profits and also affect your customer satisfaction. Thus, it’s important for e-commerce businesses to find ways to save on shipping costs, if they’re looking to thrive in the long run. 

Luckily, there are a number of things that you can do from your end. To help you do just that, here are some tips to optimize your shipping strategy, reduce your shipping expenses, and save money.

#1 Use The Right Shipping Carrier

We don’t want to start a rumble here but the truth is that the carrier you use plays an important role in how much your shipping bills turn out to come. 

So, we’ll start the first step to save on shipping costs in choosing the right shipping carrier. There are multiple shipping carriers such as DHL, FedEx, and UPS — each of them with their pros and cons.

Compare different carriers and services

Don’t settle for the first shipping option you find. 

Compare the prices and benefits of various options and choose the one that suits your needs (delivery times, preferred destinations, package size, weight, and value) and budget. 

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Negotiate with your carrier

An additional way to get great discounts from your shipping carrier is to use multiple carriers, based on your products or destinations.

With multiple carriers at your disposal, you can negotiate lower rates and save by simply asking.

#2: Choose The Right Shipping Option

Not just major decisions like choosing a carrier, even small decisions like choosing a shipping option, impacts your saving.

Consolidate your shipments

If you’re shipping multiple orders at once, consider consolidating them into one shipment. This can save you money, as shipping carriers often offer discounts for larger shipments.

Use dimensional weight shipping

Dimensional (DIM) weight shipping is a pricing method that takes into account the size and weight of a package. This can save you money on shipping costs, especially if you’re shipping lightweight but bulky items.

Use flat rate or prepaid shipping

Flat rate shipping means you pay a fixed price for a certain size or weight of the package, regardless of the destination. Prepaid shipping means you buy postage in advance at a discounted rate, and then use it whenever you need it. 

Both options can help you avoid unexpected surcharges and simplify your shipping process.

#3: Optimize your packaging

The weight and size of your packages will affect the shipping cost significantly. This makes optimizing packaging a huge priority.

Use the right size of packaging

If you use a box that is too large for your product, you will be paying for empty space. Conversely, if you use a box that is too small for your product, it may not be able to withstand the rigors of shipping, which could lead to damage and returns. It is best to use a box (or envelope) that is not too oversized but is just right for your product and filler material. 

Use sustainable packaging materials

Apart from being sustainable in nature, recycled or eco-friendly packaging materials are mostly cheaper and make your packages weigh lighter than usual, which can save you money on shipping rates.

#4: Use Tools That Help You Optimize Shipping Rates

Shipping is a complicated task, where initiating and maintaining cost optimization can be difficult when done manually. For your benefit, there are several tools that you can make use of to do the heavy lifting on your behalf.

Shipping management system

A shipping management is a software application that helps e-commerce businesses manage their shipping operations by tracking and optimizing shipping rates. Shipping management systems can be a valuable tool for businesses of all sizes, but they are especially helpful for e-commerce businesses that ship a large volume of orders.  

When it comes to shipping cost cutting, a shipping management software helps you: 

• Calculate shipping costs based on the weight, dimensions, and destination of a package.
• Compare rates from different carriers so that businesses can choose the most cost-effective option for each shipment.
• Automate the shipping process like label generation to save money and time

And much more. By gaining insights into this valuable shipping data, shipping management systems can help businesses save time and money in the long run. 

Some common shipping management systems are Shipstation, Easyship, and Stamps.com.

Parcel audit solution

A parcel audit solution is a software application that helps businesses identify and recover overcharges on their parcel shipping invoice. These solutions typically work by comparing the shipping charges on a business’s invoices to the rates that the business has agreed to with its shipping carriers. If the software finds any discrepancies, it will flag them for the business to investigate.

A traditional parcel audit is done through the following steps:

• Shipping invoices are collected and reviewed to identify potential overcharges
• A report with a summary of findings along with corrective actions is prepared to be shared with the shipping carrier
• Regular follow-up is done to ensure that the overcharges are recovered via refunds.

Apart from identifying errors and recovering refunds, regular parcel audit also helps to improve the accuracy of shipping carriers by keeping them in check, so that such overcharges don’t occur in the future. 

If you are looking for a way to save money on your parcel shipping costs, then a parcel audit solution is a good option like LateShipment.com to consider.

Bonus

Apart from the usual tips, there are also several tricks that come in handy while saving shipping costs, especially if you’re a small business owner.

1. Understand your market well – If more of your customers are located in a particular region, you can negotiate lower shipping rates with carriers that serve that region or even set up a regional warehouse. This way, you can ship products from the closest warehouse to the customer and save on shipping costs. 
2. Be mindful of when to ship: Shipping rates can increase during peak shipping times, such as the holiday season. On the other hand, shipping during off-peak times, when carriers are less busy can save you money on shipping costs. To compensate for the increased demand, you can proactively notify your customers to start their holiday shopping early and also inform them of shipping costs being expensive with the possibility of delays.
3. Incentivize in-store pickup: If you also have a brick-and-mortar store, you can offer in-store pickup as an option for customers. During the busy season when you’re worried about shelling huge costs on shipping, you can just spend a part of it to encourage customers to opt for in-store pickup. 

Conclusion

Shipping is an essential part of running an e-commerce business, but it doesn’t have to be expensive. By following these tips, you can save money on shipping and improve your customer satisfaction and retention. Remember to always compare different carriers and services, negotiate with your carrier, optimize your packaging, and use tools that can enhance your saving capabilities. Happy shipping! 📦

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If you have happened to follow the news in the recent past, you might be aware of the global supply chain crisis that is happening:  

• The number of container ships around ports has doubled since April
• Dwelling times of containers has reached 6-10 days, way above the average 4-5 days
• Railyards have also been clogged, with trains at one point backed up 25 miles outside a key Chicago facility. 

All of this can threaten to spoil the Holiday season joy for e-commerce retail businesses such as yours by eating into your profits. 

There are more negative consequences of this supply chain crisis but before we look at them, let us find the answer to the question, what really is causing these logjams? 

What is Causing This Supply Chain Crisis?

“There are going to be disruptions and shocks to the system as long as the pandemic persists and could last into 2022” – Pete Buttigieg 

Americans who chose to stay home and came outside after feeling trapped at home for a long time have been equally spending dollars on shopping goods such as laptops and at places such as restaurants, triggering an unprecedented increase in demand that the nation’s unprepared logistics system was unable to handle.

Consumer goods demand is overall 22% higher compared with pre-pandemic levels (comparing February 2020 with August 2021). – BBC

This sudden increase in demand doubled with the negative consequences of the pandemic such as workers getting affected by the virus, nationwide lockdowns, shutting down of operations, etc., resulted in lower production and distribution businesses and thus businesses ended up not being able to handle the demand.

This demand > supply factor doubled down with external factors such as shortage of workers and effects of climate change, etc is said to have caused this crisis in the supply chain.

E-commerce activity has witnessed major gains and has subsequently impacted warehousing and importing, straining logistics and supply chain networks. – White House media release  

Large businesses have the bandwidth to double down on their logistics operations and make sure they are least affected by this global phenomenon. But what about small businesses?

What Does This Supply Chain Crisis Mean for E-commerce Businesses?

Industry experts see momentary changes between the situation getting worse and staying at a standstill. Either way, it doesn’t look like it’s normalizing. 

As the customer demand doesn’t seem to be going down anytime soon, you can expect the situation to continue into 2022 (beyond the Holiday season). 

This naturally conveys that your customers’ Holiday season orders could hit a slump and would lead to a big blow on your revenue. Everything from Halloween costumes, to tech products such as computers and printers for Black Friday, Christmas decors and lights are all set to reach your customers late due to the current crisis. 

The commercial pipeline that each year brings $1 trillion worth of toys, clothing, electronics, and furniture from Asia to the United States is clogged and no one knows how to unclog it. – Washington Post

If these disruptions don’t seem enough to lose revenue, your shipping and freight costs are known to increase, leading to a cut down on your customers’ discounts in order to meet ends. 

Moreover, you can as well anticipate lower purchases from customers, who will shop less due to the sudden inflation. 

But don’t let your hopes down. There are measures simultaneously being taken and which you can take to counter the crisis. Understand what they are and make sure that you are least affected by them.

Corrective Measures Being Undertaken and What E-commerce Merchants Can Do to Ease the Supply Chain Crisis

Even though the crisis doesn’t look to get any better, the White House primarily and others who have been affected by it have been taking appropriate measures to rectify the situation and reduce considerable damage, if not already done. 

• Following President Joe Biden’s urge, The White House has issued orders for congested ports of Los Angeles and Long Beach to work 24/7 and keep containers out of ports by doing doubling trips
• Biden also said he’s considering deploying National Guard to help ease the stress on the US supply chain as it prompts growing concern about the economy
• Retail giants such as Walmart, Target, Home Depot, Samsung, etc and shipping carriers such as FedEx and UPS have all considered committing to increase usage of nighttime hours. 

Similarly, experts have some suggestions for growing businesses such as yours to overcome this disruption: 

• Now that road and sea cargo costs have risen considerably and the fulfillment time difference being huge, businesses can consider aircargo as a better option
• This year the holiday battleground is not only the CX you provide but unexpectedly the availability of your products. Therefore, look for ways to keep your inventories stocked
• Encourage customers to start shopping early as 3-4 weeks during the Holiday season days, especially right before Thanksgiving and Black Friday to avoid last-minute delays on their orders 
• Provide a realistic estimated delivery date of delivery even before customers make their purchase so that they become aware of the crisis and refrain from blaming you in case the delivery timeline gets extended
• Keep your customers in the loop of their orders via tracking information across post-purchase touchpoints to avoid getting blamed for delays that are no fault of yours.

Bottom Line

From the experts’ point of view, the past stands for an unprecedented issue, the present stands at the situation getting worse before it gets better, and the future is the calling out of the existing logistics operations model. 

The supply chain and logistics system will not and should not revert to the original model that existed during the pre-pandemic times as the current scenario calls for desperate measures in the form of modernization.

While increasing operations, availability of products, getting help from everyone possible would indeed help businesses and the economy itself circumnavigate past the Holiday season, the actual transformation of the supply chain model is the key for long-term benefits. 

From your customers’ point of view, it looks like they’re indeed aware of what’s happening with their parcels as they would’ve been affected by the delay during the past few weeks. This is what led their work on permutations and combinations to understand where exactly the demand is cropping up.

They will also start shopping earlier this year and not wait for discounts during times like Black Friday. This is because they are well aware that higher demand, labor, and shipping costs will result in businesses, especially smaller ones, providing fewer discounts to meet ends. They will not risk their order getting stuck somewhere for some bargain, which would obviously be an awful gamble. 

And as of now, follow the experts’ advice, understand the consumers’ buying behavior, and hope for the situation to get better or ‘normalize’ if there were such a thing.

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Dropshipping is a profitable and effective way of doing business. The strategy ensures that there are no consumer goods in stock. The dropshipping model mostly involves retailers working with other retailers, or working with players up the hierarchy. 

It is up to manufacturers and wholesalers, rather than dropshippers, to ensure that customers get their goods at designated places. In some scenarios though, dropshippers purchase their products from wholesalers and sell them to the consumers in turn. 

Do you have an eCommerce retail business? Read till the end for a way to save up to 20% on shipping costs & provide customers a delivery experience that has them coming back for more.

Considering that dropshipping is convenient for both the customer and the selling company, this business model is thriving. eCommerce and dropshipping profits have reached over $4 billion annually, a 7% year-on-year increase for the last 10 years.

There are numerous ways in which dropshipping is changing the world of eCommerce and we’ll name the most notable ones. This will help you understand its benefits and impact on eCommerce. 

Before we get into the benefits, if you are planning to create a store that dropships, we suggest you take a look at these tips to create a unique dropshipping store, particularly in 2021. 

1. Lowers Startup Costs

Dropshipping gives ambitious individuals a chance to start their business. Considering the low startup and operating costs, it provides many people an opportunity to give online business a try.

In 2019, there were approximately 1.92 billion digital buyers and eCommerce sales accounted for 14.1% of retail purchases worldwide.

Online shopping is growing at such a fast pace that the global online shopping market is predicted to hit 4 trillion this year.

The dropshipping model solves the problem of those who have the idea but don’t have the initial budget. If someone knows the type of product they want to sell but don’t have enough money to prepare the stock, dropshipping is their solution. 

“To get started, simply partner with a dropshipping wholesaler and begin marketing their products from your site. They handle all shipping and other logistics involved in getting the product to your customer.” 

                                      – Smallbiztrends

The process is quite simple and recommendable for those who are just starting with eCommerce business.

2. Contributes to Business Efficiency

eCommerce is all about efficiency. The entire business model relies on different independent components for optimal functioning. The strategic delegation of tasks helps the process of online purchases run smoothly. 

Dropshipping ensures that retailers do not have customer goods in stock. This helps reduce the backlog and allows these retailers to carry on their business and scale. 

When there is no backlog, the entire business operation witnesses increased efficiency.

“Running an eCommerce business is much easier when you don’t have to deal with physical products. You don’t have to manage a warehouse, pack and ship orders, track inventory, handle returns, and manage product inventory.” That is why dropshipping is so efficient.

– A Shopify representative

3. Helps Build Trust

One key challenge within the eCommerce industry is trust. Customers are always unsure if they will receive what they have ordered in time and in good condition. However, dropshipping changes the whole picture of eCommerce. 

When a supplier sends goods to a store and then the store sends out the goods to the customer, the delivery is unnecessarily prolonged. In the dropshipping model, the supplier sends the goods directly to the customers and the customer gets their product faster.

This helps build trust and increase the customer’s confidence in the eCommerce business. With each satisfied customer, come more recommendations and an increased number of online sales. 

Either way you slice it, at the end of the day, you gain from increased confidence and shopper happiness.

4. Reduces Operating Expenses

Without dropshipping in the picture, more warehouses will be in play for storage purposes. More people will need to be employed to work in these warehouses. The downside here is that these expenditures will raise the overall cost of doing business. 

Ultimately, increased costs cut into profits.

With dropshipping, products don’t have to be stocked and paid for in advance. Only when an order is placed does a product need to be sent from the supplier. 

Therefore, by assuming the delivery role, dropshipping raises the prospects of growth, success, and expansion of eCommerce.

“More and more eCommerce owners are being motivated to adopt the dropshipping model. The recognition and validation that dropshippers get from current users promises further growth. The main benefit they stress is the reduction of costs and expenses,” 

– Donna Hayes,  digital marketing expert

5. Allows for Budget Repurposing

Saving money on one end means that it can be channeled into other aspects of the business. Besides costs like storage, employees, and stocking products, there are numerous other expenses you might not even think of.

For example, conventional eCommerce owners need to prepare professionally taken photos of products if they want to be taken seriously by customers. That leads to either hiring a professional photographer or purchasing an expensive camera, lighting, and other necessary equipment. 

Instead of taking chunks of the budget for such expenses, money can be repurposed on expanding the business. 

Marketing plays a huge role in growing a business, which is just one example of where money can be channeled. 

6. Is Conducive to Selling Niche Products

One thing evident from the digital community is that it is best to enter the market while an idea isn’t still completely worn out. That’s what makes dropshipping so exciting. 

The dropshipping model is still in the growth phase. Which means there are lots of options that are yet unexplored. 

Those who wish to sell highly-specific products stand a better chance of success with dropshipping. Creating a one-of-a-kind shopping experience is possible with the dropshipping model.

Customers are always looking forward to something original and new, which is exactly what dropshipping can provide them.

A unique business model and interesting website design can make a business stand out among competitors and boost profits.

7. Lends Itself to Innovation

Every new segment in business welcomes innovative minds to introduce information technologies that are yet unseen.

As previously mentioned, dropshipping is still a growing model. Consequently, there are numerous possibilities for technology experts to come up with new software advances that will improve this business model.

For example, Ecomdash’s dropshipping management system helps users have hands-off communication between the suppliers and sales channels.

Another example of innovative dropshipping software is AutoDS, an all-in-one dropshipping platform that allows you to manage product uploading, customer service, price and stock monitoring, automated orders, and so on. 

The demand for the dropshipping model on the online marketplace is expected to increase, a solid reason for us to expect innovations within the model.

8. Provides Opportunities to Scale

eCommerce stores that use the dropshipping model can start as a hobby but end up an empire. This unlimited growth potential sends an inspiring message to the entire online community.

Consider Amazon. Jeff Bezos’s journey started in 1994 when he introduced Amazon to the world. A promising idea quickly grew into something spectacular. 

Who would have guessed then that the dropshipping business that originated in his basement would turn him into the richest man in the world?

While aiming to become the next Jeff Bezos can be a long shot, the dropshipping model still promises that an individual can achieve something great from a simple eCommerce website. 

Take Wayfair for instance. They work with over 10,000 suppliers and have 8 million products at their customers’ disposal. This massive scalability is unlikely to be achieved by a conventional eCommerce store.

In summary, dropshipping is changing the eCommerce landscape for the better. By reducing the logistical burden, retailers can focus on doing more business and developing their eCommerce wing.

On the other hand, this model also works in customers’ favor. Since suppliers directly send goods to customers, the waiting time is shorter.

There are no complications with sending a product from the supplier to the store and from the store to the customer.

Dropshipping simplifies the process.

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This article is a contribution by Elisa Abbot

Elisa is a passionate traveller, a translator, and a digital marketer at PickWriters. Her love of learning languages developed when she was just a child, and she wants to share that passion with her children. Elisa believes that learning a language can be a fun experience with the necessary component that is picking out the right activities. 

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Perhaps you own a retail business and don’t plan to dropship anytime soon. 

You probably ship via a shipping partner like UPS, FedEx, or DHL. Your shipping contract promises you refunds on parcels that are delayed even by 60 seconds. But are you claiming those refunds in time?

LateShipment.com can help you by

• Automatically auditing your shipping invoices for 50+ service failures,
• Submitting refund claims to your carrier on your behalf, thereby saving up to 20% of your shipping spend, &
• Providing you the ability to give customers a memorable delivery experience.

The value we offer is best experienced first hand and LateShipment.com integrates with your existing tools.

It only takes 2 minutes to sign up, so give it a shot!

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Few technologies have generated as many advances in logistics as data science. The inception of the so-called “Industry 4.0,” which is driving growth in the supply chain management industry, is hinged on data science and its applications.

With the extensive use of generated data, statistical and quantitative analysis, and predictive models, data science can enable enhanced insights, decision-making, and process automation. Throughout the years, data science has helped the entire supply chain industry drive down costs, improve operational efficiency, and increase the velocity of turnover. These are much needed improvements in this notoriously complex global industry.

Data science can enable enhanced insights, decision-making, and process automation.
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A big part of all this is Big Data, which has been growing at a fast pace in recent years. Information Age details how the adoption of this new technology grew by 59% in the space of under three years. This number is only expected to increase soon. Maryville University reports that the annual data created worldwide will reach 180 trillion gigabytes by 2025. This shows how prominent data has become and why so many industries are investing in data science. The logistics industry will be a key area that takes advantage of this rise in available and still burgeoning volumes of data.

A single part of the supply chain alone can generate many streams of data, leaving an ever-widening door of opportunities for logistics companies and analytics providers. Current advances in data science are enabling businesses in the logistics industry to use these data points for innovation. 

A single part of the supply chain alone can generate many streams of data, leaving an ever-widening door of opportunities for logistics companies and analytics providers.

All said and done, there are three principle benefits that data science brings to the logistics industry.

1. Improved visibility, quality, and growth potential

Data analytics is one of the key enablers of visibility. Visibility has been one of the key trends in logistics over the past few years. The demand for greater transparency and on-demand traceability of products being moved across the supply chain is higher than ever with the advent of direct-to-consumer marketing business models.

Data analytics is one of the key enablers of visibility.
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DHL’s Resilience 360 provides multi-tier visibility into its supply chain. The Resilience 360 app it launched to accompany its business platform offers near real-time visibility across transport modes. By leveraging multiple streams of data and modeling systems, the current platform boasts a capability to identify key areas of improvement even beyond suppliers or factories. This, as Google notes in its review, will address the various risks logistics companies face in a proactive way.

In its “Data Analytics in SMEs: Trends and Policies” white paper, the Organisation for Economic Cooperation and Development notes that innovations in data science are making it more accessible to small and medium enterprises, which increases scalability potential. The increasing business-to-business data analytics platforms targeted to SMEs can help them envisage the same visibility as big transnational logistics businesses without the heavy cost of an ICT infrastructure. Last mile delivery applications and small e-commerce platforms can now overlay their businesses on top of third party logistics companies.

Closing data gaps in the industry also facilitates a smoother transition to automation and other applications including the deployment of Internet of Things and artificial intelligence technologies.

Data science also helps in achieving efficiencies on the operational front.

2. Operational efficiency

Amazon’s data analytics technology that is called “anticipatory shipping” takes efficiency to another level. With data analytics, the company predicts demand in specific locations to strategically position its products. This makes one to two-day deliveries easier to accomplish for customers who demand them. And not surprisingly, this patented technology can disrupt the logistics industry as we know it. With products placed near the “anticipated demand” category, consumers can greatly benefit from the reduction in delivery times and, as Amazon projects, delivery costs.

Accurately predicting demand to synchronize supply is among the top benefits of having data science systems in place. At any given time, there are multiple data points which companies will be able to model and take into consideration – this includes currency rates, commodity trends, weather data, together with the predicted demand. And with the more efficient modeling of these data points, companies can significantly drive down costs and develop better inventory management capabilities.

Being able to cut costs without sacrificing quality is one of the key features data science affords logistics companies. Managers can then make on-demand and data-driven decisions to improve operational efficiency.

Being able to cut costs without sacrificing quality is one of the key features data science affords logistics companies.
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Data-driven modeling in the adoption of new technologies and innovations is also one of the key optimizations data science offers to the logistics industry. For example, research published by the Industrial and Systems Engineering Magazine used previously generated data to create a simulation designed to aid in deciding whether or not to adopt an RFID system in warehouse management systems. 

Data-driven modeling removes the guesswork and minimizes the risk in adopting new assets and technologies, and it can accurately predict the return of investments in adopting these innovations.

Data science’s impact can go as far as boosting the bottom line of businesses.

3. Raising profit margins

Optimizing efficiencies at scale saves a lot of overhead costs across every part of the global supply chain. UPS’ ORION (On-Road Integrated Optimization and Navigation) uses massive amounts of customer data to reduce costs in last-mile deliveries.

The parcel delivery company reports that it has saved at least 100 million delivery miles since the tech was employed. The technology, which is integrated with its proprietary map UPSNav, continuously refreshes and optimizes routes for its delivery transports – greatly reducing greenhouse gas emissions as well as delivery costs.

With many factors affecting a supply chain, being able to have information and insights through data science can give companies that much-needed edge against their competitors. Some of these factors are regulatory effects, environmental factors, capacity challenges, and end-to-end trends. As previously mentioned, data-driven modeling acts as a catalyst to efficiently adopt technologies and cuts the costs of trial processes entirely.

Logistics is a very costly and often risky business. However, data presents an opportunity to work toward stability and the capacity to manage, if not mitigate, risks involved in both forward and backward linkages. Even in shipping insurance, Big Data analytics can tell you exactly whether it is risky to let go of insurance costs. 

Conclusion

Cybersecurity is a growing concern among logistics companies. But as data science advances in applications like fraud and attack detection, its adoption is bound to save companies billions of dollars. Especially with the changing regulatory environment around data collection, having good data-driven cybersecurity systems in place protects you from costly litigations – not to mention possible damage to your customer base.

All things said and done, expect to hear more about the role of data science in logistics in the months and years to come.

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This article is a guest post by Nicole Bowles.

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A Little about LateShipment.com

We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

• Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
• Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
• Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

The post 3 Ways Data Science Will Benefit Logistics in 2019 appeared first on Lateshipment.com Blog.

A reliable 3PL logistics process provider can maximize your profitability through their knowledge, expertise and resources. Let’s look at some advantages of hiring a 3PL provider.

6 Advantages of Hiring a 3PL Service Provider

1. It Saves Money in the Long Run

It may seem like hiring 3PL services provider would be expensive, so you may be against the idea. However, hiring their services will save you money in the long run.

By using their services, you won’t have to invest in transportation, technology, warehouse space and staff. All this will cut down your costs significantly.

2. The 3PL Provider Brings Their Expertise

A 3PL provider is aware of industry best practices. They also stay up-to-date with the latest developments in the manufacturing and logistics industry.

When you hire a 3PL provider, they will bring with them their industry expertise. They will help you incorporate industry best practices in your business. For example, they would suggest using industrial floor scales as it is one of the best weighing practices.

3. It is Less Expensive than Handling Logistics Yourself

If you want to handle logistics yourself, you would have to spend on various things. For example, building warehouses, facilitating transport, hiring labor and investing in technology. 3PL services take care of all these things, thus reducing your costs considerably.

Moreover, 3PL providers also eliminate the hassles of billing, paperwork, audits, staffing, and training. They also optimize and improve the supply chain.

3PL providers eliminate the hassles of billing, paperwork, audits, staffing, and training.

4. It Helps You to Position Yourself in Newer Markets

One major benefit of 3PL logistics outsourcing is gaining the ability to establish yourself in newer markets.  

You will have access to distribution centers and warehouses in multiple locations across different regions. This will allow you to grow your business in new markets by being able to ship your product anywhere across the globe.

You will be able to locate and track products in a new market without spending on equipment, warehousing and labor. You can save money and instead spend it on positioning yourself to your new customers.

5. It Frees Up Time to Focus on Core Competencies

Outsourcing 3PL logistics operations will free up your time. This will allow you to focus on the core competencies of your business. Since the experts would be handling your logistics, you won’t have to worry about logistics management.

6. It Helps in Continuous Optimization

The amount of work required to ensure the smooth running of supply chains can be overwhelming. You may even have to put in a lot of work with limited resources. All this can be eliminated by hiring 3PL providers.

When you partner with a 3PL provider, you can optimize the supply chain. 3PL providers offer faster delivery times and more accurate order fulfilment. This leads to happier customers.

How to Choose the Right 3PL Service Provider

Partnering with a third party logistics provider will help your business as it scales up. However, not all 3PL providers are created equal. As a result, one needs to put in the effort to zero in on the right 3PL provider.

Your 3PL provider should have the following:

1. The Ability to Scale

As your company grows, so should the services of the 3PL provider. If they don’t have the ability to scale their operations to the growing needs of your business, move on to the next one.

Apart from scaling up, they should also be able to scale down when the customer demand is low. Ideally, look for a 3PL supplier who can offer you comprehensive and holistic services. They must be able to handle a sudden growth of your company.

A good 3PL will be able to handle a sudden growth of your company.

2. Technology to Support Clients

Every 3PL supplier has multiple clients. This means that they should have the technology to manage each client successfully.

Ensure that the 3PL supplier is abreast of the latest technologies in your space. They must be adept at handling ongoing technological changes.

Check if the company invests in relevant technology and innovation-related projects. Lastly, they should be able to integrate their system with your automation requirements.

3. The Ability to Offer Various Warehousing and Transportation Options

Choose a supplier who can offer you a wide range of shipping and warehousing options that meet your operational needs.

If the 3PL provider has extensive relationships with numerous suppliers, you will also benefit from their association. You can choose an option that offers the lowest cost.

4. Financial Stability

Ensure that your 3PL partner has a stable financial past. If their payment history is solid, the chances of them quitting on you due to financial problems is low.

Ask for a listing of their partners and enquire about the 3PL provider’s payment history. If they have never missed a payment, it indicates they are stable financially. This could act as a litmus test of how they would treat your company.

When you get a clear view of their financial stability, you can be sure of a fruitful association with them.

As you can see, outsourcing to a 3PL provider can benefit you in numerous ways. They help you minimize wait times, maximize profits, and improve customer service. If you are in the logistics industry,  outsourcing to a 3PL service provider is highly recommended.

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A Little about LateShipment.com

We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

• Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
• Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
• Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

Also Read:

• 5 Ways to Improve a Customer’s Post-Purchase Shipping Experience (Bonus Tips Included)

• Shipping Carriers Compared: DHL Vs. FedEx Vs. UPS in 2019
• 10 Women Who Took Their Passion for Fashion Online

The post Why You Should Hire a Third Party Logistics Provider appeared first on Lateshipment.com Blog.

As I emptied my trash last week, I realized it was filled with the plastic packaging from all the products i had ordered online. Each of them had arrived in neatly wrapped layers of plastic (sometimes more than two).

As a retailer, have you ever wondered if you could reduce your carbon footprint on the planet?

Have you considered the ill effects of the packaging materials used on a daily basis?

If not, it’s high time we started seeing things through the eco-conscious lens of the new age consumer.

The stark reality of these packaging materials is that they lie in landfills and clog acres of land. A multitude of plastic materials also make their way into the sea and get into the stomachs of marine life, killing them slowly. What’s more? Once a seal dies after consuming plastic, the seal is scavenged or it decomposes. But the plastic lodged in its stomach resurfaces again and poses the same threat to other marine life forms. It is the same on land too. So, one plastic sheet or cover can keep killing innocent animals until it decomposes.

And guess what? Plastic takes over 500 years to decompose.

In order to look out for the welfare of our species and the others that inhabit this planet, we need to look for viable alternatives to plastics, styrofoam, cardboard, and paper used in the supply chain process.

Enter Green Packaging

As the name suggests, Green Packaging involves the use of eco-friendly packaging materials that pose no (or little) threat to the environment.

Green packaging is sustainable packaging that uses biodegradable materials and energy efficient manufacturing methods for the packaging of goods. It has minimal impact on both energy consumption and the environment.

The Why of Green Packaging

Being responsible world citizens, we are duty-bound to reduce our carbon footprint and figure out a way to slowly eliminate plastic from our systems.

The first and foremost reason to embrace green packaging is that it is the right thing to do. You save the earth through meaningful efforts. Moreover, when you do the right thing, you build your reputation. Businesses seek reputed partners to work with. Governments give brownie points, tax breaks, and more to companies that work on reducing their carbon footprint.

Beside that, 85% of consumers seem to want packaging that is recyclable or reusable!

Alternate Materials

As they say, necessity is the mother of invention. Figuring out alternate sources to the ones currently in use is an ongoing process spanning several decades.

Green packaging eliminates contaminants and chemicals that destroy the water, soil, and atmosphere. This is possible through biodegradable and recyclable packaging like returnable and reusable crates for beer and wine.

Green packaging, as a practice, also includes lower packaging content. This philosophy encourages the use of alternate renewable energy sources in supply-chain processes.

Some of the green packaging materials used today are:

•       Biodegradable plastics
•       Plant-based plastics
•       Recycled products
•       Post-consumer recycled polyethylene bags made from recycled waste
•       Recycled moulded packaging for eggs

Starch-derived PLA (lactic acid) is 90 percent biodegradable within 9 months when subjected to industrial composting processes. It is made out of sugar cane, potatoes, corn, or other starch-rich plants. PLA is a great alternative to plastics as plant starch decomposes with little external help.

Adding OXO and BIO additives to packaging material: OXO and BIO additives can expedite the decomposing process of packaging material.

What should your business avoid in green packaging concepts?

•       Plastics made from polyethylene
•       Styrofoam
•       Multi-layered packaging
•       polystyrene
•       Fossil fuel energy

Several retailers are now exploring sugarcane waste and hemp packaging. Bagasse is a by-product from sugarcane production all over Asia. After sugar is extracted, the waste is turned into pulp and pressed into plates, bowls and boxes. Bagasse has high cellulose and is very stable, heat resistant and moisture resistant.

Hemp (yes you read it right), is a good source of bio plastics. While hemp brings in concerns and is outlawed in some regions due to its CBD content, it can be a saviour when it comes to green packaging.

Industrial hemp, a variety of cannabis that has less than 0.3 percent of THC, is a good raw material for bioplastics. It is an easy-to-maintain plant that absorbs carbon dioxide and grows rapidly (which makes it a renewable resource).

Organizations That are Doing Their Bit

The bigwigs haven’t been sitting this one out.

Some of them have rolled up their sleeves and braved the murky plastic-infested waters of packaging to do their bit.

Governments offer subsidies to organizations that practise and promote green packaging. To make use of these schemes, to save the planet, and to promote themselves as champions of a good cause, organizations leave no stone unearthed in coming up with innovative methods of packaging.

McDonald’s plans to achieve 100% all fiber-based packaging from recycled or certified sources by 2020.

Logistic companies like FedEx and UPS have their own green initiatives. The best thing about one company going green in a competitive sector is that others follow suit rapidly. UPS and FedEx had committed to reduce emissions from their airlines by 20 percent between 2005 and 2020. It’s safe to say both companies are well on their way to go beyond the set target!

DHL offers a carbon report through its Go Green Initiative. It maps emissions generated from transportation within the DHL network. When you use DHL as your primary carrier, you can view these reports on monthly, quarterly, or yearly basis and bring down your carbon footprint accordingly.

In China, Alibaba and L’Oreal have teamed up to come up with a green packaging strategy for all of L’Oreal’s products. Several other beauty brands are expected to follow suit. Studies reveal that consumers are willing to pay more for a product that encapsulates green principles.

Giants like Unilever are also stepping up to do their bit. Partnering with recycling leader Terracycle, the brand is testing out a packaging model named Loop that uses reusable packaging made from aluminium and glass. REN skin care, Love Beauty and Planet, and Seventh Generation will be some of the brands in this trial. Some of the other big names who have currently signed up with Terracycle’s Loop include Procter & Gamble, Nestle, PepsiCo, Mars, Clorox, Coca Cola, Carrefour, and UPS.

Fast fashion retailer ASOS is also looking to go green in the near future by having customers return their packaging so that their next order can be packaged in the same one.

What You Can Do As a Business

The supply chain, as we know, encompasses everything from sourcing to sale. Every link in the chain has its share in the carbon footprint.

1. Resize packaging to fit the contents. Many studies indicate that conventional packages are far bigger than the required size.
2. Wherever possible, use 100% PCW paper and recycled plastic.
3. Recycle boxes and packaging material you receive in shipments. Among things you can recycle are plastic lids, packaging cushions, air pillows, and beads.
4. Label packaging material so that people know what goes into a landfill and what goes into a recycler.
5. Work on a standardised Recycling-Reusing plan that is understood throughout your supply chain. This can be built into a process that facilitates reuse and recycle in a more efficient manner across businesses.
6. Try alternatives like Scoby (which is produced like Kombucha) when it comes to packaging food stuff or fresh produce. It can be grown quite easily in two weeks.
7. Sign up with a green partner who will help you through all aspects of the supply chain including green packaging methods. They will also help you promote your eco-conscious efforts.

Going green is not something we can achieve in a day or a month or even a year. We have years of pollution to unravel before we make a positive impact on the environment. But every single step counts. No matter how small a step, it is your contribution to the cause that matters. What we cannot do alone, we certainly can together. Here’s to a better future that begins with green packaging.

A Little about LateShipment.com

Do you have a strategy when it comes to handling parcel delays and driving more meaningful customer engagement in the last-mile? We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

• Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
• Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
• Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

The post Green Packaging: The What, Why, & How appeared first on Lateshipment.com Blog.

If you are tired of all the opaqueness associated with the shipping process and you just want things to be simpler, I’m here to help. I’m as tired of the machinations of the shipping industry as you are.

One area which many small business owners struggle with is DIM weight.

1. Understand how DIM weight works

Unless you ship using USPS flat-rate boxes, you are going to have to deal with the concept of dimensional weight. This can be be a little confusing for those new to shipping. Dimensional weight (or volumetric weight) was introduced because light-weight, low-density packages had become unprofitable for shipping carriers due to the amount of space they occupied in relation to their weight.

DIM weight is calculated based on the formula:

Dimensional Weight = (Length x Height x Width) / DIM factor

The DIM factor is a number that can change from carrier to carrier.

The implication of dimensional weight has been that shipping packages has become more expensive. It is therefore important for you to ensure that you use the right amount and type of packaging to save on costs.

If the concept of DIM weight daunts you, worry not! Major carriers like FedEx and UPS have dedicated DIM weight calculation tools.

2. Don’t forget to negotiate with your shipping carrier (you actually can)

Many small businesses fail to realize that shipping rates are negotiable.

Don’t just settle for the rate your carrier charges you. Do a thorough comparison of the rates various carriers offer before settling in on a carrier, and then negotiate.

The carrier needs your business as much as you need their service. Inform the carrier representative of the rates other carriers offer. Tell them your options are still open. You will probably end up getting a sweet deal!

Of course, the actual process of negotiation will differ from carrier to carrier, but this is the basic way you need to go about things.

You could also consider using multiple carriers to fulfill your shipping needs. This way, you will end up getting the best deal each carrier has to offer for your needs. For instance, you could use one carrier for domestic shipments and the other for cross-border shipments.

3. Make sure to include the cost of shipping in the final bill

This is something many small businesses overlook. Explicitly state and include the cost of shipping on the billing page. If you don’t, the burden of paying for shipping will fall on you.  Another thing that is possible is that the customer will be required to pay for shipping on delivery. This can lead to a bad delivery experience, and the customer may choose to not buy from you again.

Also, if the shipping price varies from region to region or you plan on shipping internationally, make sure you include the relevant rates on the billing page.

4. Audit your shipping invoices regularly

Many small e-commerce businesses seldom do this. And what is the outcome? They end up losing a lot of money.

The thing is, shipping carriers mess up with their billing from time-to-time. Unless you audited your shipments, you would never know. Regularly auditing your shipping invoices helps you evaluate the service you are receiving. This can help you get your carrier to improve the quality of their service and also be a negotiating tool.

Auditing can be a pain if done manually, but there are automated options to make your life easier. LateShipment.com is one of them. Check us out. We’re waiting.

Auditing shipments gives you the opportunity to claim refunds for service failures. What are service failures, you ask? Let me explain.

Service failures are when shipping carriers mess up. There are over 50 service failure types. Some of the easy ones to identify are late deliveries, products damaged on delivery, and lost packages.

When shipping carriers mess up, they owe you money. But they don’t just own up and hand over the money to you. By design, they have a complicated process by which you need to apply for refunds within a particular time period.

Thankfully, you can be at ease using automated services like ours which track your shipments and watch out for service failures. We get your refunds for you and credit them back into your account. How cool is that?

5. Track your orders in real time

Manually tracking multiple orders in real time can be cumbersome. It’s a hassle to enter the tracking number of every single package you’ve dispatched into the portal of your shipping carrier to determine status.

A service like Pulse can help you in this regard. Pulse is a free service that is part of our offering. It works with all your shipping carriers to give you real-time updates on the status of your deliveries. It provides a great deal of insight into the shipping process, so you can stay ahead of delays or inform your customers about them. This way, you can ensure customer satisfaction regardless of the issues that occur during shipping.

A view of the Pulse Dashboard

6. Be an early adopter of technology

Stay informed of the latest tech trends affecting shipping. Be an early adopter of technology. This will give you an advantage over your competitors and also help you stay on top of challenges associated with tracking and auditing shipments. Scaling becomes easier when you move to an tech-driven process.

Automation is already beginning to play a big role in the shipping industry. Automated parcel auditing and shipment tracking is a growing industry in and of itself. Automation in these areas helps free up valuable human resources so that core business areas can be given the attention they require.

7. Package well enough to avoid damage

This may seem like a no-brainer, but a lot of damage is possible in transit. Your parcel will undergo a lot of stress during the shipping process. It is one among thousands of others that require shipping. In most cases, those who handle it will not give it special consideration.

Many young businesses fail to factor this when packaging their products. The amount of shock absorbent material required to protect your product is probably more than you might imagine.

Be generous rather than frugal with the amount of protective packaging you use. You will not regret it. The last thing any small business owner wants to hear from their customer is that the product shipped was damaged when received.

A Little about LateShipment.com

Do you have a strategy when it comes to handling parcel delays and driving more meaningful customer engagement in the last-mile? We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

• Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
• Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
• Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

The post 7 Valuable Shipping Tips for Small Businesses appeared first on Lateshipment.com Blog.