Top Ways to Reduce Supply Chain Costs – Focus on Shipping

We came across an interesting article on the website for the Contract Packaging Association which gave insight into a problem manufacturers and co-packers alike have to grapple with. As you may well know, companies are constantly under extreme pressure to design and execute efficient, productive, predictable, and cost effective supply chains.

Here a few of our favorites:

– Check with your association: Associations can bring you shipping benefits that leverage the scale of the association – which includes pass through savings to its members.

– Complete the bill of lading: This may sound like a no-brainer, but always complete the shipping forms to insure that your shipment is not delayed and does not acquire extra charges.

– Pay attention: Always label your shipment properly so that the person signing at your destination is impossible to miss. And always fill out the appropriate paperwork for international shipments.

– Time is money: Don’t ship something overnight if you don’t have to. Always communicate with your receiver to understand exactly when it needs to be there and ship based upon that exact schedule.

– Customer service: It is always a good idea to communicate with the receiver of the shipment to let them know the exact shipping schedule. Ultimately, you can keep everyone abreast of a transaction’s fulfillment. Some services have proactive notification abilities, which may cost money, but will still be less than if a delivery shows up and you have to pay a fee because there isn’t anyone there to sign for it.

– Packaging: Proper palletization can dramatically reduce the likelihood that you will be spending an inordinate amount of money on damaged goods. Accidents happen but if you package, stack, and seal a pallet properly, you can reduce delays in fulfillment and claims costs – not to mention administrative costs.  And all of those things usually translate into happier customers.

There are of course many ways to reduce supply chain costs and solutions vary per industry – but don’t overlook shipping as a way to save money!