In today's environment every process should be reviewed to determine that every dollar spent is being well spent. Shipping packages could be an area where money is being unnecessarily to meet expectations for delivery. The following items can reduce shipping costs and still get your packages there on time.
Planning
Overnight service can cost up to 300% more than shipping by ground service depending upon your vendor. Anyone can be a star in their department by reducing costs by 300%! Planning ahead is the key to avoiding expedited service fees. All vendors should offer a service level map for your area in order to know when you will need to send a package within the United States and have it arrive on time. This map should be displayed in all shipping areas and distributed to anyone utilizing shipping services. Use this to work backwards; if you know something has to be there by Friday, what day do you need to ship it ground service for it to arrive on time?
Also, be aware of the pick-up times from the vendors at your facility so that you do not lose a day by not having items prepared for that day's pick up.
Shop Around
Each vendor has their areas of service in which they offer the most competitive pricing and others where their prices are not as competitive. Do not get in a habit of using the same vendor without investigating the rates of another vendor. For example USPS overnight letter rates may be better than FedEx overnight letter rate, but FedEx package rates may be better than USPS package rates. Many factors impact rates of each vendor such as recipient location, business or residential, package weight, etc.
Also be sure to determine the value of using vendor provided boxes and envelopes. That free envelope or box may be costing you much more than a box you could use from your stock.
Also, each vendor has different levels of overnight pricing. Determine if it truly needs to be there early the next day or does it just have to be there by the end of the next day. The difference in price could be $50 or more.
Quality of Addressing
An accurate mailing address is critical to eliminating unnecessary fees in shipping. Vendors will charge at least $12.00 to correct items addressed incorrectly and more, depending upon the service required in the process. There is also the lost dollars in expedited service fees that will not be provided. For example: You spent $50 to overnight an item with an incorrect address, you will pay correction fees and the item will not be received overnight AND you will not receive a refund due to YOUR error. Remember, the USPS is the only vendor who can deliver to PO Boxes, these items will be returned to you by other vendors and you will not receive a refund and probably will incur additional fees.
These simple suggestions can save money and maximize your shipping dollars and your supervisor will be sure to notice your efforts!
Please contact Dennis Brown or Mark Hale for additional questions you may have regarding shipping and receiving: 513-947-6713 or toll free at 800-207-4807.
Article by Dennis Brown - OMG, LLC Shipping Specialist