5 Steps To Reduce Inbound Shipping Budget


Business sustainability is dependent on the effective deployment of assets and cost saving policies. One of the costs that impact businesses is inbound shipping.

What Is Inbound Logistics?

It’s simply the system that monitors the supply of goods to your business. This system includes the transportation, storage, and timely delivery of products.

Each stage sustains a huge amount of cost. A small error in order placement can over-stock or under-stock your warehouse, costing your business millions of dollars.

Therefore, it’s essential to streamline the process and reduce costs at every level.  Here are some cost saving strategies for your business.

Accurate Costing

In order to save cost, you need to determine the accurate cost of each unit.

The supplier’s invoice accounts for the carrier’s cost in the total cost of your order. This increases the cost of your product. Apart from the additional cost form supplier’s side, your product is also susceptible to market volatility.

It’s pertinent to determine freight cost for each product, so that you can apply the right pricing strategy for your consumers.

Cost Negotiation

Effective cost-cutting measures can be taken by increasing the visibility in data. If you have trends and data analysis available, you can make conclusive strategies to limit additional cost at every level of supply chain.

Fuel costs highly impacts the shipping rates. Vendors might give you an upfront discount, but might make up for it with different surcharges. Negotiate a cap on the fuel cost.

Standardization

Re-evaluate your supply chain. Streamline processes. Eliminate redundant participants in the chain.
A short chain will cut costs and save time. Increased costs may be a result of over-lapping functions. You and your supplier might be doing the same job twice.

To eliminate this, monitor the shipping process closely. Examine freight cost for each product, accounting the size, weight, and location of delivery. Investigate the warehouse for inventory of relevant products. Establish the cause of delay in delivery.

With all this information, you can make policies for suppliers and carriers to follow. After the placement of these policies, it’s essential that you monitor supplier to ensure compliance.

Automate Your Inbound Logistic

You can integrate an Inbound Software to your current supply chain system. With the help of a supplier TMS portal, you will know the accurate freight rate, effectively coordinate with suppliers and carriers, set schedules, and print labels and legal documents.

Moreover, you can avail the best carrier rates available in the market. In addition to effective comparison, these software companies work closely with different carriers to avail special discounts. So, by automating your inbound process, you can take advantage from these discounts.  

Your business can save freight cost by 30% and internal processing cost by 20% with the help of ProcessWeaver’s software solutions. You can call their 24/7 helpline to schedule a live demo. 

Comments

Post a Comment

Popular posts from this blog

Carrier Compliance In Shipping: Everything You Need to Know

Image
When it comes to shipping, compliancy matters. Carrier compliance means to comply with the rules and regulations set by carriers for contracting with them. These include rules for labeling, rating and manifest reporting. Generally speaking, shipping carriers are constantly updating rating labels and other significant information. Therefore, it is crucial that businesses take compliance seriously. Lack of compliance can lead to several bottle necks in the supply chain process. It can adversely affect order fulfillment as well as customer experience. Although carrier compliance is important to ensure shipping successful operations, it is one of the toughest areas to handle. This is particularly true for companies engaged in international markets. The international shipping arena involves several customs rules, tariffs and packaging specifications. Needless to say, failure to handle these aspects properly can cause delays in deliveries. To simplify and streamline carr...
Read more

How to Create a Carrier Strategy That Works Any Time of Year

Image
When it comes to choosing a shipping carrier, most businesses pick carriers one at a time and then negotiate rates. However, your company’s shipping demands keep fluctuating within a year. To keep up with the changing shipping needs, businesses must design an effective carrier strategy that can work any time of the year.   Here is a simple guide on how to create a carrier strategy for your business: Creating a Carrier Mix Most companies use two or three carriers to transport products. However, if you want to achieve efficiencies and cost savings, you should select at least have 5 carriers. Having access to a variety of carriers gives you diversification and allows maximum flexibility when dealing with customers. If a carrier suspends its operations due to weather conditions, you can opt for another carrier service. Your shipping strategy must have the right mix of carriers. Your Business Goals Next step, align carriers with your business goals and objectives....
Read more