October 2015
How Shipping Software
Will Boost Your Business
How Shipping Software Will Boost Your Business
CONTENT
Introduction .............................................................................. 3
1. 8 Reasons Why You Should Streamline Your
Shipping Process ................................................................. 4
2. The Impact of Inventory Visibility and Control ....... 5
3. Better Transport and Logistics ....................................... 6
4. An Integrated Shipping Solution .................................... 7
5. Better Shipping Cost Management ............................... 8
6. The Role of Carriers ............................................................ 10
7. International Shipping ....................................................... 11
8. Customer Satisfaction ........................................................ 13
9. Your Checklist:
Shipping Software Features and Benefits .................. 14
2
How Shipping Software Will Boost Your Business
Introduction
Introduction
Consumer expectations today are shifting to instant satisfaction. People
want to know if the item they want is available, where it’s coming from
and how quickly they can get it. This puts a lot of pressure on retailers,
distribution centers, third party logistics (3PL) providers and carriers as
they all work together to achieve the same goal – getting orders out to
customers as quickly and efficiently as possible.
Adopting the right shipping strategy can give companies a competitive
advantage, while providing an outstanding customer experience. And if
handled the right way, a company’s shipping function can be transformed
from a cost center into a profit center.
However, cost-effective shipping is a challenge because each shipment
can potentially involve multiple carriers with numerous levels of services
and constantly changing rates. Intricate business rules and shipping
restrictions for parcels that differ in size and weight, include anything
fragile, hazardous or perishable, or are shipped outside of the country
further complicate the process.
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How Shipping Software Will Boost Your Business
1. 8 Reasons Why You Should Streamline Your Shipping Process
1. 8 Reasons Why You Should
Streamline Your Shipping Process
A consolidated shipping process will enable you to:
1
Achieve the lowest possible freight costs on all shipments
2
Produce carrier-certified shipping labels, manifests and other required documents
3
Deliver more orders faster by shipping from any inventory source
4
Increase operational efficiencies for mid to high shipping volumes
5
Integrate all systems and technologies to leverage a cost-effective, interconnected supply chain
6
Raise visibility for live package status, delivery updates and shipment history for internal and customer use
7
Exceed customer expectations for shipment delivery
8
Streamline returns and reverse logistics process
4
How Shipping Software Will Boost Your Business
2. The Impact of Inventory Visibility and Control
2. The Impact of Inventory Visibility
and Control
Companies realize
that a true overall
inventory visibility
across all different
branches of the
company is
definitely a huge
advantage for
them.”
Shipping software that can integrate directly with your Order Management
System (OMS) or Warehouse Management System (WMS) can make a big
difference in helping you to better utilize inventory. If you invest in the right
software, you can gain a detailed picture of your entire fulfillment inventory, no
matter where it’s located.
As Nathan Rucker, Director of Strategic Accounts at ProShip, Inc. explains,
“Companies realize that a true overall inventory visibility across all different
branches of the company is definitely a huge advantage for them.” Integrated
fulfillment across all channels can help you reduce freight charges, shipping
times and warehouse expenses by leveraging the fastest, least expensive routes.
And when you can deliver more orders faster, it ultimately leads to increased
customer satisfaction.
Nathan Rucker,
Director of Strategic Accounts,
ProShip by Neopost
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How Shipping Software Will Boost Your Business
3. Better Transport and Logistics
3. Better Transport and Logistics
Orders should be
easy to fulfill,
regardless of
whether the
product is coming
from a store, a
distribution center,
manufacturer or
vendor.”
Mark Aument,
Vice President of ProShip by Neopost
Shipping software gives companies
the opportunity to automate which
carrier and service level is selected,
based on costs and/or business
rules that have been established.
So, if a customer doesn’t mind
how long it takes to get their order,
certain shipping solutions enable
the company to use a postal service
or carrier that will deliver in five to
seven business days, dramatically
cutting down on shipping costs.
Shipping software also provides the
best rate for getting the shipment to
the customer as quickly as possible.
So before making your transport and
logistic choices, you need to know if
you have to find the cheapest way to
ship or the fastest way to ship in order
to keep your customer happy.
It is best to select shipping software
that is carrier neutral, giving you the
ability to choose the best carrier to
ship each package.
This allows you to guarantee that each
package will be shipped at the lowest
possible rate, while ensuring an ontime delivery date.
Fulfilling orders involves choosing
the best inventory source, carrier and
service level, and the software you use
should be able to manage this. Mark
Aument, Vice President of ProShip,
Inc. explains, “Orders should be easy
to fulfill, regardless of whether the
product is coming from a store, a
distribution center, manufacturer
or vendor.”
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How Shipping Software Will Boost Your Business
4. An Integrated Shipping Solution
4. An Integrated Shipping Solution
If you want to achieve a competitive advantage in the shipping world, you need to choose a solution that provides not
only sophisticated “rate shopping” from a wide variety of carriers and services, but also acts as an integrated “turnkey”
asset in your data management arsenal. The primary benefits of such a solution are:
• Speed
• Automation
fast, real-time processing of complex business rules and
automate business rules specific to your company as well
rating logic
as your shipping and manifesting processes
• Compliance
• Visibility
certified by all major carriers and complies with ongoing
allow real-time, 360 degree visibility through the entire
rules and requirements for labeling and manifest reporting
shipping process with live package status, delivery
• Ease-of-use
updates and electronic notifications for your customers
intuitive one-touch shipping processes with the ability to
• Reporting
quickly add new carriers
leverage reporting and analytical tools to negotiate better
• Rate
shopping
carrier rates
the power to automate rate shopping between your
• Integration
chosen carriers and service levels
integrate seamlessly with existing host systems and
• Scalability
technologies to automate, simplify and reduce costs in
the supply chain
easily scale from a single work station to an enterprise
wide solution
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How Shipping Software Will Boost Your Business
5. Better Shipping Cost Management
5. Better Shipping Cost Management
Shipping software will help you reduce the amount you spend on freight, streamline your warehouse processes, provide
new delivery capabilities and potentially help reduce your inventory levels.
Shipping software will also help to improve customer satisfaction by giving you the ability to better communicate the
status of your customers’ shipments.
Faster Shipment Processing
$24 an hour x 260 work days per year
= $26,208 per year.
A powerful shipping engine, along
with improved physical flow, will
decrease the amount of time and
effort it currently takes to ship a
package without incurring additional
costs. Eliminating steps will improve
the speed of package processing and
avoid lost or incorrectly shipped
packages.
• Multi-carrier shipping software will
significantly reduce the time to process
a package through your carriers.
Assuming $24 per hour is the cost of a
fully burdened employee, and there are
3,000 packages shipped each day, and
• Shipping software can drastically
reduce the time it takes to process a
single Less-Than-Truckload (LTL) or
Truckload (TL) order. Currently, if it
takes approximately 15-20 minutes,
automated shipping software can cut
that time to 1-2 minutes per shipment
to produce the required paperwork.
Assuming $24 per hour is the cost of a
fully burdened employee, and there
are 35 LTL/TLs per day and a savings
of 15 minutes per order is realized,
then the cost savings of 8.75 hours per
day at $24 an hour = $210 per day, or
$54,600 per year.
Order Visibility
Shipping software will allow complete
order visibility within the enterprise
and instant tracking once packages
leave your facility. This visibility will
empower customers to track their
own packages, which will in turn save
time for your shipping and customer
service departments.
• By giving customers the ability to
track their own shipment, you will save
money even if you are only getting 20
calls a day and it is taking five minutes
per call. Assuming $24 per hour is the
cost of a fully burdened employee you
could potentially save: 20 calls each
taking 5 minutes per call is 1.6 hours
you save 5 seconds per package then
saved per day at $24 an hour x 260
the cost savings of 4.2 hours per day at
work days per year is $9,984 per year.
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How Shipping Software Will Boost Your Business
5. Better Shipping Cost Management
More Accurate Shipping
Custom Address Validation Modules
within the shipping software can offer
accurate address validation. This can
reduce or eliminate carrier charges for
exceed 5% of total annual carrier spend.
and produce or electronically transmit
For example, if your total carrier spend
the required documentation and
is $300,000.00 per year and you save
customs forms. Automatic rate
just 5%, that calculates to a savings of
shopping among the international
$15,000 per year.
carriers assures that you’re shipping
most economically when carrier costs
address corrections, thus allowing you
to improve on-time delivery
performance for your customers.
are the highest.
Analytics and Reporting
Additionally, address verification will
Screens and/or reports can be created
improve the integrity of your internally
to isolate cost centers and monitor
stored customer information and
trends, while helping greatly to reduce
Shipping software should be an
decrease the number of items shipped
unnecessary use of premium
enterprise solution that scales as your
to incorrect locations. Bar codes and
transportation services. Reporting can
business grows. Shipping software is
bar code scanners eliminate manual
be designed to help evaluate and
often designed with a modular
key-entry in shipping, also eliminating
understand the complete transportation
architecture, allowing you to install, pay
the chance for human error. Savings in
spend by carrier, by division, by location,
for, and maintain only those modules
this area are generally difficult to
by department, by customer, or by any
that your business actually needs,
quantify. Every mis-picked, mis-packed,
searchable data field. The impact of
saving both time and money. The
mis-labeled, or mis-shipped customer
better planning and management
flexibility of scalable solutions allows for
order results in an additional cost per
reporting through shipping software
your business to grow, whether you are
shipment. These mistakes or delays in
may be different for each organization,
adding locations, stores, e-commerce
the order fulfillment process can cost a
but is critical in effectively managing
sites or international shipping
sale or even a customer.
freight costs.
destinations. Scalable software will
Scalable Solution
keep you from having to expend more
Automated Rate Shopping
Customized and Compliant
Labeling
Multi-carrier shipping software with
Multi-carrier shipping software enables
time-in-transit and a rate matrix will
companies to easily meet the
provide information on the most cost
requirements for compliant labeling
effective and time efficient method of
without having to change printers, label
transit. The best carrier service is not
stock, or systems. This can reduce
necessarily based on the size of the
carrier charge-backs for non-compliant
package and the delivery date. With the
issues and reduce the overall amount
right software you can find a cheaper
spent on freight.
time, energy and cost shopping for a
new solution as your business expands.
Support
Customer support, though hard to
quantify, should also be considered a
value. Your organization may not need
24/7/365 support, but be sure you have
a process to get the help you need if
carrier service and your package will still
your system is down. Support should
arrive on the required delivery date.
come from a team of engineers familiar
Rate shopping multiple carriers at a
International Shipping
shipment level is a powerful tool to
Whether you’re shipping to Asia,
ensure least-cost alternatives and
Europe or South America, shipping
benefit from the value regional carriers
software should perform the different
could offer. Average savings should
regulatory steps for each destination,
with your environment, who because of
their certified status have access to
carrier support.
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How Shipping Software Will Boost Your Business
6. The Role of Carriers
6. The Role of Carriers
According to JP Morgan Chase, over 75 percent of retail purchases are made within 15 miles of the home. “Retailers have
to not only be concerned about how to ship merchandise around the world, but they must also focus on getting items to
consumers who live close to their store,” said David Payton, Vice President, Global Parcel Marketing at FedEx. “We provide
the breadth of services to help retailers find the optimal balance of price and speed, whether the item needs to be
delivered the same day, the next day, or in just a few days, down the street or around the world.”
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How Shipping Software Will Boost Your Business
7. International Shipping
7. International Shipping
Warehouse Managers are
continually challenged to
find new solutions to
increase the efficiency
of their processes to save
time, reduce risk of error,
and ultimately satisfy
the customer”
Choosing the right software to manage your global
transportation processes can make international shipping
much easier. However, while the ability to ship products
globally can contribute to the success of an enterprise, it
also presents a new set of issues. Customers today want a
low shipping rate and as Postal Technologies explains,
“Warehouse Managers are continually challenged to find
new solutions to increase the efficiency of their processes
to save time, reduce risk of error, and ultimately satisfy
the customer.”
Postal Technologies
FACILITATING E-COMMERCE
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How Shipping Software Will Boost Your Business
7. International Shipping
Manual labor provided by distribution staff can be reduced dramatically by automating the shipping process.
Furthermore, by partnering with a service provider, you will not only save on labor but also increase the accuracy of your
operations. Shipping software can make international shipping as easy as “scan and ship,” with a simple five-step process:
5
KEY
STAGES
1
2
3
Placing the package on a scale for
Scanning an ID barcode on the
Gathering data from the host system
weight and dimensions
package to capture item details
regarding information about the item
being shipped, the package’s
destination and service level required
5
4
Printing and applying compliant labels and
Verifying information on the
shipping documents to the package while origin, weight and shipping data
real time inventory and order updates are
for the package
written back to the host system
Carrier compliance is a key success factor for companies who have tapped into the international market. However, it is a
complex process that also involves knowledge of import tariffs, packaging specifications, customs rules and regulations.
If these aspects of the shipping process are not handled properly, this could lead to incurring additional fees, major delays
in your deliveries or possibly even having the deliveries returned.
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How Shipping Software Will Boost Your Business
8. Customer Satisfaction
8. Customer Satisfaction
Shipping is the end process for all of
the efforts that have been made at
each stage of the commercial chain,
from acquiring the customer to
making the sale. According to
“Shipping as a Marketing Tool for
Boosting Sales” by Nadine Devisch,
“Shipping has a major role to play in
the overall online shopping
experience.” As Ms. Devisch
explains, “Shipping should be
considered from the moment initial
contact with the customer is made.”
Furthermore, a report carried out by
the European Commission in 2013,
highlights that shipping strongly
influences customer loyalty.
It appears that the major reasons a
facilities. As Justin Cramer, Director
performance and excellent
customer makes a repeat online
of Services at Proship, Inc. confirms,
customer service is at the heart of
purchase are linked to logistics and
“Leveraging a single shipping
successful shipping. Enterprises that
transport such as free shipping,
solution, where enterprises can pull
partner with providers who
return options, delivery times and
together thousands of shipments
guarantee enterprise-wide,
shipping updates. Shipping is
that are not being controlled, offers
multi-carrier solutions, will acquire
therefore important not only to
numerous business benefits.”
the decision-making skills of a
logistics experts, but also to sales
and marketing specialists as it is an
ideal tool for conversion and
customer retention.
shipping expert, enabling them to
Many people who do not have
shipping expertise think that in
reduce costs and increase
customer satisfaction.
order to get a shipment to a
destination the next day, they need
The lessons in shipping learned
to ship it with a costly next-day air
from the retail sector can be applied
service. However, very often a
to other businesses, such as
cheaper ground shipment service is
insurance companies or
just as efficient. Investing in a
manufacturers with hundreds of
solution that offers outstanding
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How Shipping Software Will Boost Your Business
9. Your Checklist: Shipping Software Features and Benefits
9. Your Checklist: Shipping Software
Features and Benefits
The system you select should offer these functions:
Fast Execution of Complex Business Rules
Quickly handle the most complex of business rules for
optimizing carrier and service selection for any type of
shipment, regardless of content, dimensions, destination
or regulatory restrictions.
Multi-Carrier Package Rating
Allow rate shopping between major carriers for all
service levels and special service options such as
Saturday Delivery and Hold at Location and allows you to
use published rates or your own negotiated rates.
Carrier-compliant
Ease of Use
Comply with carrier rules and regulations for labeling and
manifest reporting. Produce customized shipping labels
unique to your company while allowing for return logistics.
Work with all major carriers and most local and regional
carriers; new carriers can be added quickly
and easily.
Provide a user-friendly interface with an intelligent
system design that reduces your workforce investment
by handling and managing all of your company’s
shipments, whether the inventory is in the distribution
center, store or still with a supplier.
Document Production
Scalability
Produce all your shipping documents either electronically
or as hard copy, from packing slips and compliance labels
to international documents and those required for
hazmat deliveries.
Grow with you and is multi-tiered to allow multiple
computer workstations to access shipping functionality
and data from a central server.
Multi-Piece Shipping
Process multiple packages in a single shipment with
different shipping parameters.
High-Volume Shipping
Handle high volume with ease across your entire
fulfillment network (distribution centers, stores and
suppliers), with exceptional speed while accommodating
the most complex business rules.
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How Shipping Software Will Boost Your Business
9. Your Checklist: Shipping Software Features and Benefits
Manifest Mangement
Weight and Packing Verification
Perform end-of-day procedures from any workstation,
including printing or electronically transmitting carrier
manifest reports.
Retrieve individual item weights and dimensions, along
with carton information, and confirm each box leaving
your dock for accuracy in packing.
Reporting
Stores detailed package information of all processed
shipments for future reference and to negotiate better
carrier rates.
High Visibility
Provide easy and immediate access or email status
notifications on all tracking data regarding each shipment
– when it was sent, where it is now, and when
it will be delivered.
International Shipping
Vendor Support
Allows printing or electronic transmission of customs
related international documents like Certificate of Origin,
Commercial Invoices and Shipper Export Declaration, to
keep your package from being charged extra fees,
delayed or returned.
Ensure your shipping solution vendor offers exceptional
support and services and is made up of experienced and
trained professionals in both the supply chain and
IT fields.
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How Shipping Software Will Boost Your Business
Sources
• Shipping as a Marketing Tool for Boosting Sales online article by Nadine Devisch
• Postal Technologies – Shipshape
Contributors
Mark Aument, Vice President, ProShip, Inc. •
Nathan Rucker, Director of Strategic Accounts, ProShip, Inc. •
Justin Cramer, Director of Services, ProShip, Inc. •
David Payton, Vice President, Global Parcel Marketing, FedEx •
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How Shipping Software Will Boost Your Business
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