Success story - over $5 million saved in shipping costs and counting.

Shipping cost is a big black hole for many retailers. If shipping costs are 20 % of sales, is it good or bad? How to benchmark costs for 100,000s SKUs the company is selling?

My team helped a rapidly growing retailer reduce shipping costs from 25 % to 10 % of sales saving over $5 million in 2 years. Replicating our success is easy and I`m happy to share the blueprint:
  1. Perform careful per vendor analysis of ship costs (packages volume, ship methods, carriers, damage rate and recovery)
  2. Negotiate better discounts with shippers by giving them more of your business and sharing data about your customer geography and shipments volume
  3. Convert vendors to ship on your account
  4. Perfect your damage claims process to maximize recovery from damaged in transit orders
  5. Work with your vendors to make sure they put your PO number on every shipment (makes reconciliation easy and guarantees that your shipping account will not be abused)
Now it is the time to ask yourself - do internally or outsource. My strong suggestion - outsource! Instead of one in-house person you`ll get a team of experts looking at your shipments daily preventing and fixing issues before you even know about them.

Each day of not being perfect costs you money. Get an expert look at your logistics and help reduce your shipping costs.

Time to start saving is now! Happy savings for your Holiday Season.

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