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Shipping and distribution operations have a direct impact on the bottom line for any organization. Consistently being able to select the right carrier, for the right customer, and delivering parcels and shipments at the right time at an appropriate price is not easy for organizations of any size. As difficult as this may be, companies can leverage this challenge into an opportunity to convert your shipping operation from a cost center to a profit center that saves you money, dramatically impacting your company’s bottom line, and increases customer service while providing information for better proactive decisions.
The Challenge
In today’s marketplace there are numerous carriers with varying services to consider when shipping parcels. While each carrier has their own unique set of services offered and subsequent charges associated with those options, the task of easily comparing these carrier’s rates can be daunting.
Many carriers provide tools to help customers navigate through their specific array of options when shipping their parcels; they can be limited at best. These applications typically provide information on a specific carrier shipping options, but do no comparison across different carriers. These tools can range from software applications that work locally off your computer, to web based interfaces that walk through a series of steps to provide rate choices.
While these tools are helpful to the occasional or infrequent shipper, when you’re shipping a wide variety of parcels and packages to different locations, the task of comparing rates across all the various carriers and their options would be extremely time consuming. In today’s competitive environment it is just not feasible. Shippers have deadlines to meet for getting the shipments out the door and time sensitive deliveries to meet. Although carriers provide some tools for processing these various transactions for their rates, it can be difficult or impossible for customers to do “on-the-fly” comparisons of the various carriers and configurations available to them and subsequently many companies tend to opt for the easiest solution for shipping their parcels. The decision to take the easiest path can often be very costly to organizations.
Aside from shipping rates there are other factors that come into play when shipping parcels. Customers may dictate whom they would like to use. Perhaps they have special arrangements or relationships with a specific carrier. The finance department and information technology systems may have designated internal business rules that can affect shipping. Perhaps the organization has negotiated special rates with a particular carrier. There are a variety of both internal and external factors aside from rates, that must also be considered, which can affect the selection of a carrier for shipping parcels.
The Opportunity
An opportunity exists for organizations to make faster and more informed decisions around the shipping of parcels, packages, and goods, that can help save their company money. This is important for anyone associated with the costs of shipping, warehousing, and distributing within an organization. Additionally, the shipment of parcels can affect many other departments and people within an organization including sales, marketing, customer service, and finance.
Software solutions have been developed and are available that can help businesses control the flow and costs of parcels and shipments from your organization. These packages can provide a wide range of benefits to companies such as:
- Rate comparison for all major carriers
- Integration of internal business rules and individual customer carrier preference
- Integration into existing back end systems
- Cost center management
- Address correction and cleansing
- Integrated tracking of delivery status and automated email and fax notifications with tracking information
- Automated delivery confirmation
- Rate comparison for all major carriers
Integration of internal business rules and individual customer carrier preference
Today’s solutions can be configured to incorporate conditional logic, ensuring that internal business rules and a customer’s carrier preference are automatically followed. Data can be transparently passed from one system to another, improving cost center management and overall customer satisfaction. The software is able to automate a wide range of processes and deliver up to the minute, real time information to everyone in an organization.
Integration into existing back-end systems
Leading software solutions are able to pass information into an existing back-end system, ensuring consistency of data and providing valuable real time information to all areas in the organization for improved communications and reporting. This truly benefits organizations by reducing errors from data entry and eliminating the need to enter redundant data into separate systems.
Cost center management
Solutions are able to analyze carrier usage and costs and deliver concise, detailed reports for analysis. They have the ability to track shipments by department and cost center and can verify budget availability. These features can improve the accuracy of departmental charge-back allocations and ensure that cost centers are being managed efficiently.
Address correction and cleansing
Solutions are available that can provide automatic address verification and cleansing. The process of address cleansing and correction alone can save organizations money and can transfer savings directly to the bottom line. Some carriers charge address correction fees and also will charge back to shipping companies the costs of returning incorrectly addressed parcels. Besides shipping savings, address correction can have a positive impact on customer service. By improving delivery performance, less customer calls will be received around delivery issues, improving the overall customer relationship and satisfaction level.
Integrated tracking of delivery status and automated email and fax notifications with tracking information
Some of the solutions available have integrated tracking functionality for monitoring delivery status. Additionally, some applications will automatically generate messages and deliver those messages to various departments and customers providing them with real-time shipment and tracking information.
Automated delivery confirmation
Some software solutions are able to receive automated delivery confirmation notices from carriers. This information can be dynamically updated in the company’s computer system, so that information in the system is always current and those in the organization that need to know parcel status can access that information quickly and easily.
Enable your company to perform
With advances in software and technology, companies have the ability to efficiently manage their information and make educated decisions regarding all aspects of their business. As with many software solutions, the benefits can far outweigh the costs of implementation. The capabilities discussed throughout this article and the various benefits provided would vary from company to company in terms of the business challenges they face.
Communications today are more seamless and integrated than ever before. Companies constantly need to make more informed business decisions faster. The ability to do this efficiently can drastically improve a company’s ability to respond to their customer’s needs and demands, while controlling their costs and expenses. Computers, software, networks, and the Internet are providing businesses with the infrastructure and tools necessary to make this happen.
For years, software solutions have played an integral part of organizational success. It was only a matter of time until it helped optimize the shipping and distribution environment. Software solutions today are designed with users in mind, they have become much easier to use, and they can be integrated into existing business systems to deliver powerful business results. Fortunately with the advances made in technology you have alternatives available that can streamline processes and provide the information necessary to make fast and informed decisions. These solutions can get your packages delivered in a manner that demands efficiencies with the ability to easily rate shop major carriers, allow for integration of internal business rules, have the ability for integration to back-end systems, coordinate cost center management, provide address corrections, automate tracking, delivery, communication notifications, and automate delivery confirmation which in the end benefits your company and all of your supply chain.
When implemented correctly companies can utilize these capabilities as a competitive advantage and differentiate themselves from their competition. By embracing change and leveraging these benefits, companies can really distinguish themselves from their competitors, improve their internal processes, and provide their customers with an exceptional experience.