As a top logistics consulting company, we at ReverseLogix are here to help your business with several areas of the logistics world. One that often gets overlooked by many businesses is shipping, which can be one of the single largest drivers of business costs out there.

How do you keep high shipping costs from interfering with your profits? Here are a few basic tips for doing so while keeping your overhead low.

Go Hybrid

If you’re doing a lot of shipping, you’ll be dealing with major carriers like FedEx and UPS. These companies both provide delivery systems that leverage USPS for their final delivery – by going with hybrid delivery systems, you can save as much as half on many orders. In addition, you can employ regional carries and cut out large carriers altogether if most of your orders cluster into a specific region.

Negotiate Well

If you’re using these big carriers regularly, you will likely have established an account with them. Make sure you get on the phone with your representative, citing expanding volume of orders – you could be eligible for reduced rates based on the number of orders you put in, as these companies do not want to lose your business.

Effective Packaging Methods

Ineffective shipping and handling processes are some of the biggest sources of loss when it comes to shipping. Use data in the form of shipping reports to break down any inefficiencies you have, and consider our analytics as well here.

Look for areas where ineffective packaging methods are hurting you, both from a size and a weight standpoint. Invest in a scale so there aren’t any issues.

Discounts

If you belong to trade organizations, it’s possible you qualify for shipping discounts. You might also be eligible for lenient rates if you’re in certain industries – once again, all you have to do is call your representative here to see if you can get a reduction.

Fulfillment Costs

Some carriers provide an on-time delivery money back guarantee, and it’s important to take advantage of this. Some companies even hire staff or dedicate resources to ensure that these kinds of fulfillment costs are recovered – they could impact thousands of dollars on your bottom line by the end of the year.

For more on keeping shipping costs low, or to learn about any of our reverse logistics service areas, speak to the pros at ReverseLogix today.