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How ERP software can help tame expedited shipping costs?

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tame expedited shipping costs
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Though terrifying it may sound for expedited shipping costs, it is true that many SMEs are still stuck in the ice-age when it comes to handling and managing shipping costs and product delivery. We live in a connected world where business decisions are taken on the go. This is the reason businesses all around are exploring new avenues to help cut costs. And, shipping costs are no exception here! Though inventory cost reduction solution are available at a high price tag, the maximum a manufacturer gets is supply chain visibility.

Since the last few years, ERP systems are gaining popularity in the automotive industry. Entrepreneurs and business leaders substantiate their ERP based on ROI, operational costs and basic initial investment. In today’s age of enterprise technology, delivery speed and shipping costs are major concern that influence a customer’s purchase decisions. Incorrect address and shipping leads to additional shipping and labour costs. Here’s how an ERP software can help your business tame expedited shipping costs:

Smarter and automated reporting system

Track product movements and trends by running reports at fingertips. This will help you get prodigious insights to help curb shipping costs. Reports can also show best-selling products so that you can better stock your inventory. If you are an importer and support automatic re-ordering of stock, automated reporting system can prove to be a huge timesaver. It eliminates manual errors and reduces administration costs involved.

Consolidate supplier shipments

You can enquire supplier about shipping consolidation options. And depending upon stock availability, you can request your supplier for part shipment or full shipment. Some suppliers only allow full consolidation option that means your shipment won’t be dispatched until all the items of your order are in stock. Though this option facilitates only one shipment cost, it elongates lead times. Whereas, part consolidation option allows available items to be shipped immediately with out of stock items in secondary consolidated shipment.

Streamline processes

Analyse trends of expedited shipping costs based on your reporting and keep those items close that are generally sold together. Try to sell the items in combos rather than selling individually. For example, a combo of electric kettle and sandwich maker. Such a combination has high selling probability. If you have a robust ERP system in place to support this process, you can assemble and dispatch the items in-house only and can ship it as a whole. This will save your labour and shipping costs. You might be surprised to know how much time you can save by moving fast selling items closest to the packing department. This would streamline and speed up your packing and shipping process.

Reduce shipment/product returns

Ensure whether your company is ready to suffer the cost incurred in case a customer tends to return an item. Convey your return policies clearly to your customers else communicate it clearly through your website. Product returns cost you in man-hours, labour charge, processing cost resulting in unvendible stock. Streamlined delivery model helps you cut down shipping costs.


Thus, these are few ways an ERP solution can help curb shipment costs as well as reduces total delivery time to customers.

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