The extensive web of international freight shipping system can be intimidating to any beginning or established company. If you’re not moving the same item to the same destination repeatedly various elements will impact your domestic shipping cost. Consideration of distance, weight and delivery time is only the beginning when you are deciding on the right shipping method for your shipping needs and a thoughtful and deliberate plan of action can help you save time and money in the future. Formulating rates and determining transportation routes is equally an art as they are a scientific process, and having a thorough understanding of the shipping industry and a well-designed strategy can help you achieve long-term success.
A third-party logistics firm (3PL) can help simplify the process and improve your capability to navigate rivers of transportation throughout the country. In many cases, it acts as a mediator over pricing as well, a 3PL is able to negotiate special discounts and rates, and aid in the achievement of the company’s goals and values — for instance, getting products to their destination on time, and for the best cost.
When selecting the right 3PL or in coaching your own shipping department There are a lot of factors to take into consideration and a well-defined strategy is crucial for everything else to work. First, you need to comprehend the way that shipping companies look at the product you offer. Then , you will be able to determine the best method to deliver it to your client.
What is the factor that determines the cost for a full truckload domestic?
Commodity
The first consideration is your commodity. What is the product you’re selling? Does it have to be perishable? Are you able to tell if it is heavy? Fragile? It’s important to know and be aware of the commodity you are selling and what the shipping company’s perspective is on the logistics of delivering your product.
Your freight classes are assigned to your product(s) when they are put together and are ready to be shipped. The cost of shipping will be affected by the freight class which is broken up into 18 factors based on the weight, density, dimensions, the value of items, liability, accessibility to handle, and capacity for storage. If the product is shipped on pallets, cartons, crates, or barrels, then the shipper must adjust their load based on the freight class of your shipment. Consideration should be given consideration to the manner in which you intend to pack your product. A smaller and more manageable package to the shipping service will save you money.
If the weight and size of your products remain relatively similar, you could typically opt for a per-item and zone-based system, where the cost for shipping is determined by the delivery location, and not by weight and size.
Delivery time
Pitney Bowes, a global technology company, reported in 2014 that a staggering 93% of customers agree that shipping options are a key aspect of their online experience that’s up from 24% in 2014.
And not only that, 88% of those surveyed thought that free shipping was a more attractive offer to purchase, even if it took 7 to 7 days, as opposed to the cost of a delivery service that is 1-2 days.
Guaranteed delivery time is an essential element of every company. Offering options to the customer such as 1-2 day and 5-7 days, as well as free shipping ought to be considered otherwise you risk customers looking elsewhere. Thus, you must have the ability to get your product to them using various ways. A 3PL can assist in determining the most efficient routes and methods for delivery.
Location
The distance traveled influences the cost, but the efficiency and transportation methods are the main reason. Packages are loaded from pickup locations, then transported or trained or directly to their final destination, or transported to central hubs, which are also known as Distribution Centers (DC). At the DC’s, truckloads are condensed to increase the capacity of a truck. Then , they are routed via major channels. If your item is loaded and unloaded “dock-to-dock” without the requirement for lift gate service and the price will be lower than if it has to ship to a residential address or an indoor delivery. If your shipment needs deliver to an area with a limited access area, such as an educational institution, a church, or storage facility, then extra charges will be applied. These and other Accessorial Charges like fuel price increases can boost the overall cost of shipping your product.
Shipping options
Does your product fit in a 1st class envelope? or on an 18-wheeler with a flat bed? Chances are it fits somewhere between. A clear understanding of what each transportation method can do for you can determine how you need to transport your product. When you’ve identified your commodity, and can package it to maximize its freight class You can concentrate on how to get it where it is required to be.
Documents and parcels
There are numerous options available when sending smaller packages. Anything from an envelope and up to 150lb fall into this category. Establishing a reliable relationship with a carrier can take some time. It is advantageous to look into the cost and other options prior to.
The choice of a 3PL
As your business grows, and your network expands it’s important to have a professional team to handle your shipping needs. The cost of transporting products via the supply chain has steadily increased and the complexity of transportation management could be best outsourced. Statistics show that 3PL’s often have better shipping rates and are able to get your product out faster. The experts estimate that companies can expect freight charges to typically amount to around 10 percent of their overall cost an amount that is significant enough to pay attention to and to apply the most effective strategies to cut down on. But choosing the right 3PL is not as simple as picking the cheapest one or the biggest. Selecting the right fit for your company is essential. Your success should be measured by a long-term and profitable relationship.
When you are deciding on a Third Party logistic company (3PL), here are some things to consider:
What is the method by which your product will be transported? Does the 3PL able to handle all transport options available, rail, air or waterways? Investigating how the 3PL handles similar products to yours may provide knowledge of how your product can be handled.
Value-added services. What exactly do you require to get your product moving? Re-palletizing, custom packaging, white-glove services, warehousing? While the majority of these services can increase costs, a 3PL is often able to negotiate rates and terms to provide the best rates.
Recognize your company’s core value system. Selecting a 3PL signifies that you’ll be working together to create an integrated approach to carrying the delivery process. The 3PL, therefore, should become an extension of your company that must consistently reflect your goals and principles. Does the 3PL exhibit a proficiency for customer service? What is your business’s sense of urgency? Does the 3PL feel the sameway? Is there a sense of the team spirit, of people coming together to make things happen? Do the dimensions of 3PL mirror your own? Are you concerned that you believe your business won’t receive the personalization you want? What are the international services that the 3PL offer? Your company’s core value system must be established from the start. A long-term, positive relationship with a 3PL is contingent on a shared vision of the immediate plan and the future objectives.
How can you gauge ROI? In the event that you outsource shipping needs How do you determine whether you’re getting most bang for your buck?
If you are trying out the 3PL system, make use of key performance indicators, such as:
– On-time performance
– Product damage or loss
– Billing accuracy
– Costs (and hidden cost)
– Ease of communication
– Problem solving through creativity
– Competitive discounts
– Elimination or reduction of accessorial costs
– Best use of transportation and routing
– Consistent performance reports
In today’s highly competitive marketplace shipping has taken on an importance that consumers consider it as their top priority. The reputation of any business could be damaged or created by a few reviews based on the speed and quality of the delivery that your company promises. It makes sense for any enterprise, whether small or large to adopt the most reliable freight shipping strategy to ensure your products arrive on time for the best price possible.
Marvel Transport & Warehousing Group
12, Granary wharf, Business Park, Wetmore Rd, Burton-on-Trent DE14 1DU
0333 090 7654
marvel-group.uk
