Companies using FedEx and UPS will be affected by the upcoming change in shipping rate calculation. You can influence how much this impacts your business. In this video we will share a few tips on how to reduce the financial impacts of dimensional weight shipping rates.
While this change may seem as if there are stormy times ahead, it is also a great opportunity to take a deep dive into your business and make some improvements.
One way you can reduce the financial impact of dimensional weight shipping is by optimizing your packaging. This will reduce the amount of large package fees your logistics provider charges. Large packages are defined as those which have a combined length and girth of over 130 inches. Avoid these fees by eliminating excess use of packing materials and unnecessarily large containers.
Your business can also reduce associated shipping cost by providing package dimensions while manifesting. This allows you to properly determine shipping fees for your customers and reduce charge-back fees from your carrier for package size discrepancies.
Testing out new packaging options is also a great way to optimize your packaging processes and reduce shipping costs. Now that shipping rates are based on volume rather than simply weight, replacing small boxes with padded envelopes or using more size appropriate box sizes can significantly reduce costs.
Using cartonization software can result in significant savings. Cartonization software works with your warehouse management system and executes during the shipping process. It determines if the shipment will be split into one or more containers and then determines the correct cartonization strategy. The system considers the dimensions, weight, fragility, position requirements and other factors when evaluating the proper container, placement and packaging materials. Using cartonization can produce dramatic savings in labor and materials for your business and result in decreased order returns and damages.
Another useful software tool is shipping management software, sometimes referred to as manifesting software. Shipping management software integrates parcel information with carriers. The software provides current rates for carriers such as UPS, FedEx and others. Using shipping management software, your company will be able to print out carrier compliant labels and documentation and have instant access to tracking information. Your employees will be able to use the shipping management software search for the lowest rates and method of shipment. This is a great tool to have in your arsenal to combat increasing shipping rates, fees and delays. Whether you choose to use these tips, cartonization and shipping management software or other means, your business can have more control over shipping fees.