As a general rule of thumb, one big order ships for less than three smaller orders. That means consolidating multiple orders into a single shipment whenever possible and always striving to minimize the number of packages you send. All too often, shipments are arranged as they come in from sales or order processing. However, a little planning and visibility goes a long way toward saving on shipping.
As the example below shows, one 30-pound small package shipped via FedEx produces a 27 percent expense reduction over shipping two separate small packages, netting almost $6 in savings.
When it comes to small package shipping, these savings (although seemingly small) definitely add up over time. However, when you consolidate LTL freight shipments, the savings become immediately more impressive. As the example following shows, by consolidating three 300-pound shipments into one 900-pound freight shipment, the shipper was able to save 25 percent, or $454.24, on their freight shipping expense.
Consolidating orders provides additional benefits to both shippers and receivers (consignees) of small package and LTL freight shipments, including:
- Reduced shipping supply expenses
- Greater fuel efficiency (better on the environment)
- Less time needed to receive, handle and restock orders
One strategy for shipment consolidation is to create a simple shipping guide that takes into consideration all of your business rules for carriers, weight breaks, orders and shipping contacts. Distribute this guide to your vendors and discuss it with your customers. A little communication can often go a long way toward small business savings
Brought to you by PartnerShip, the company that manages the PMPA Shipping Program and recent recipient of NASTC’s “Best Broker” status. For more information or to enroll, visit PartnerShip.com/28PMPA, or email sales@PartnerShip.com.