Shipping costs are one of the biggest pain points for businesses, and let’s be honest – they always seem to be on the rise. The recent General Rate Increases (GRI) and added surcharges from carriers like UPS and FedEx have many companies feeling the squeeze. But here’s the kicker: many businesses are leaving money on the table because they’re not fully tapping into the power of their shipping data.
If you’re wondering whether you're among the many missing out, the answer is probably yes. Here’s the good news: you don’t have to accept these high costs as inevitable. With the right strategies and tools, you can use the data you already have to drastically reduce your shipping expenses. Let’s dive into how!
You probably noticed that shipping rates have increased, but have you really taken the time to break down how those changes are affecting your business? By digging into your historical shipping data, you can see exactly how rate hikes are impacting your bottom line. Not understanding these increases can cause you to budget incorrectly, resulting in higher-than-expected shipping costs. But with a little analysis, you can adjust your strategy and avoid any surprises.
Did you know that many carriers offer money-back guarantees for missed delivery windows or billing mistakes? Yet, many businesses miss out on these refunds simply because they don’t have visibility into their shipping costs. Regularly auditing your invoices can reveal billing errors and missed service guarantees that could save you a lot of money. With the right tools, identifying and claiming these refunds can become a seamless part of your process.
When was the last time you reviewed the service level you’re using to ship packages? If you’re sending orders with Overnight or 2-Day services when Ground shipping would work just as well, you’re wasting money. The key is understanding exactly when faster service is necessary. Sometimes, a quick tweak—like opting for Ground shipping instead of Express—can make a huge difference without sacrificing delivery times or customer satisfaction.
If your warehouses are spread out or located far from your customer base, you're probably paying more for shipping than necessary. By using data to pinpoint the most cost-effective shipping routes, you can identify the best fulfillment center locations. Ship from the warehouse closest to your customers and save on transit costs. It’s a small change that can result in big savings over time.
Don’t forget about inbound shipping costs! If you’re sourcing products from distant suppliers, your inbound shipping expenses could be skyrocketing. Use your shipping data to evaluate whether you could source from a closer supplier or consolidate shipments to cut costs. Every little change adds up over time.
You’ve probably been in a situation where you’re sending multiple orders to the same location. Did you know you could be consolidating those shipments to reduce your total shipping costs? Your shipping data can help you spot these opportunities, so you can group orders together and ship them more efficiently. It’s an easy way to maximize resources and minimize expenses.
Fraud is unfortunately common, and unauthorized charges can sneak onto your account without you even realizing it. But don’t worry—there’s a way to catch it early. With the right visibility into your shipping accounts, you can track your spending patterns and spot unusual charges. This kind of oversight can prevent losses and keep your accounts clean.
One of the biggest hidden costs of shipping is actually undervaluing it. Without real data, it’s easy to guess or estimate your shipping costs, but these guesses can eat into your margins. By using shipping data to get a clear picture of your true costs, you can set more accurate shipping charges that keep your business profitable.
There’s a wealth of tools available today to help you make the most of your shipping data, but one of the best investments you can make is a Parcel Spend Intelligence tool. With this kind of tool, you can gain instant insights into your shipping patterns, see where the waste is, and get actionable recommendations. It’s like having a personal shipping consultant on hand at all times.
Shipping doesn’t have to feel like a never-ending drain on your resources. By diving into your shipping data and using it intelligently, you can uncover a wealth of opportunities to save money, optimize your processes, and improve the customer experience—all at the same time.
Remember, you already have the data; you just need to use it! It’s time to take control, reduce your costs, and ensure your shipping operation is as efficient and cost-effective as possible.
Want to learn more about how to use your shipping data for smarter decisions? Don’t hesitate to reach out—we’d love to help you get started.
Reach out today and start slashing your shipping costs the smart way!
