Sophisticated Fulfillment Providers have logic-based technology that lowers shipping costs by determining the optimal shipping carrier and method in order to accomplish the client’s goal, on a package-by-package level. For example, these systems can be programmed to simply choose the lowest cost service to a customer address. Or, complex logic can be employed to make these selections more intelligent. Some services may be less expensive but poor performers to certain destinations. Time-in-transit may be a factor in making a decision. A Shipping Intelligence system applies logic to outbound orders so that you always use the right carrier and service based on a particular goal without paying a penny more than you should.
Let us analyze the two main logic categories: Cost and Time-in-Transit.
Oftentimes, lowest cost is the most important metric. A Shipping Intelligence System can seek out the lowest cost carrier and service while also taking into account carrier surcharges, such as residential and delivery area surcharges, weight and size penalties by service, and more to ensure that the best decision is made.
Many shippers today are looking for a balance between time and cost. A Shipping Intelligence System can look at the address being shipped to and determine the time-in-transit by service and then apply the least expensive service that satisfies the transit time goal. For example, if a 2-day transit is required, the technology will determine if regular Ground service reaches that address in 2 days. This sophistication means that the package is shipped at a fraction of the cost of 2-day express service. Never pay for express service unnecessarily again!
Using a logic-based system is a great way to offer 2-Day service without paying 2-Day rates in all instances. The newest software packages that really make a difference to optimize shipping costs and transit times can cost over $100,000. Most marketers cannot afford this investment on their own. But experienced Fulfillment Centers are constantly researching the newest tools and upgrading to gain efficiencies. If you have questions regarding the systems that a2b has in place – we’d be happy to talk with you and pinpoint some ways in which we can reducing your shipping costs!