Updated: Apr 28
As shipping becomes a mission-critical process in the supply chain, the complexities of this role have increased. Senior management needs accurate and timely data that helps them make important decisions that impact their organization's long-term success.
Typical Senior Management Titles:
• Chief Executive Officer
• Chief Financial Officer
• Chief Operating Officer
Senior Management is responsible for the vision, profit, and loss of an organization. Their concerns reach across every department and level.
Areas of Concern:
• Growing Their Business: Retaining current customers, acquiring new customers, entering new markets and adding new products
• Efficient Operation: Meeting schedules, controlling inventories, adequate staffing, and process improvement
• Reducing Costs: Reducing expenses and compressing the time between orders placed and payments received
• Improve Productivity: Streamline processes and workflows to increase production
Areas Where Intelligent Shipping Can Help:
• Enterprise-Level Data Analysis and Reporting for better visibility of overall spending
• Eliminate Rogue Shipper's Wasteful Spending across their organization
• Negotiate Best Shipping Rates via superior historical reporting intelligence on their shipping profile
Questions Senior Management Needs to Ask Their Organization:
What percentage of our total sales do we spend on shipping?
• On average, shipping costs range from a low of 3% to as much as 10% or more of a company's total sales. This percentage can be even more if you ship a lot of last-minute rush and overnight orders.
What percentage of our total shipping budget is carrier surcharges?
• Many executives don't realize that surcharges (i.e., wrong address, residential, etc.) account for 30% to 40% or more of each carrier's yearly revenue each year. These surcharges, if left unchecked, have the potential to add a lot of unexpected costs to your company that end up coming directly out of your profits.
How can we keep our shipping spend in check?
• This simple question is multi-faceted and complex. The first step is we typically recommend is to run a historical audit of your parcel and freight carrier invoices over the past several months to determine where you're at right now. Once done, we typically have the information we need to make intelligent decisions.
How are we going to leverage our detailed shipping data to get better shipping rates?
• Most customers we've worked with believe they are getting the best rates possible. That may be true, but it's also worth "re-validating" those "best rates" regularly. As is the case above, we typically recommend that our customers allow us to engage our carrier rate negotiation experts to work on their behalf, with no out of pocket costs, to achieve a better rate structure for your company.
OnShip's Managed Shipping Services Platform watches your back 24/7 above by monitoring, analyzing, verifying, and reporting on every shipping nickel spent across your organization. From one shipping station to thousands, we can help you eliminate wasteful spending once and for all. Take us for a test drive, or let's run a real-time ROI using charges from your real-world shipments to see how much wasteful spending we can find for you.
Good Luck & Happy OnShipping!