Desktop Shipping Software ROI Adds up Fast for Non-Warehouse Shipments
Many companies have expertly leveraged multi-carrier shipping software systems in their distribution operations, but they’re leaving money on the table for shipments that take place outside the warehouse.
With today’s advances in shipping technology, companies can much more easily deploy desktop shipping software organization-wide to reduce costs on non-warehouse shipments by enabling employees to compare carrier costs, reduce manual errors and labor.
How Many Non-Warehouse Shipments Leave Your Offices Every Day?
You’d be surprised how many packages are shipped by other departments – and are processed manually, without the benefit of carrier rate shopping.
By extending your core shipping system to employees’ desktops, you can significantly reduce shipping costs for packages containing documents, product samples, marketing materials, etc. You may also want to consider offering your shipping program as an employee benefit by allowing personal packages to be shipped at your discounted rate. Employees can then reimburse the company for freight charges.
One ADSI customer, a large insurance company with 70,000 employees in 24 facilities, knew a large volume of office-based packages was being manually shipped by employees every day with no cost-comparison of carrier services taking place.
Employees chose a carrier based on their own preference, filled out the paperwork by hand and sent it to the mailroom where it was manually keyed into a carrier-provided shipping system. This approach was time-consuming, costly and error-prone. Tracking was cumbersome.
Recognizing the potential ROI they could gain, the company implemented desktop shipping so that any employee could ship from their own workspace. They now log in to the corporate, multi-carrier shipping system on their computer, enter their delivery details and compare carriers’ delivery times and rates.
The shipping software prints a simple ship request form including a unique barcode, attach it to the package and send it to the mailroom where it is scanned, processed and shipped.
After 12 months with the new desktop shipping system, the results were staggering. With all non-warehouse shipments now being captured on the corporate shipping system, they gained a true picture of shipping volume. They had shipped more than 1 million non-warehouse shipments! (To read this desktop shipping case study, go here.)
Your Non-Warehouse Shipping Volume May be Much Larger Estimated
True, this is a large insurance company with a high volume of documents being shipped. But even if this number were divided by 100 – and the total was 10,000 non-warehouse shipments – what impact would that have on your freight bill?
Ways to Control Freight Costs
Desktop shipping software can reduce freight costs in several ways:
- Ensure that lowest possible freight rates are applied by all employees. You’ll increase your desktop shipping ROI by allowing other departments to access the same freight rates on non-warehouse shipments that are used in the warehouse.
- Drive better negotiations. Desktop shipping captures non-warehouse shipment details on a daily basis, so it’s on-hand when you start negotiating.
- Refunds. Do all of those non-warehouse shipments get delivered exactly as they should be? Or are there discrepancies such as late deliveries that may be eligible for a refund? By capturing the details with desktop shipping, it’s much easier to track carrier performance and invoicing. Better yet, use an automatic invoice analysis tool that finds the refunds and files them for you.
- Reduce costly surcharges. Handwritten shipping documents can be illegible and error-prone, and address corrections can add up to significant charges. For example, UPS address correction charges for 2015, according to its website, are $12.35 per package, up to $86.45 per shipment. If you add address verification software to your desktop shipping system, this problem is eliminated.
- Eliminate manual labor. No need to fill out forms and key them into the shipping system. Employees get it done on their own computer, in a fraction of the time.
- Add the USPS to your multi-carrier shipping software system. In many cases, particularly for residential shipments, U.S. Postal shipping can get the package delivered at a much lower cost. Add the USPS to your desktop shipping ROI; the savings can quickly add up!
These are just a few of the ways that you can benefit with a robust desktop shipping ROI.
Do you need exposure to rating or shipping information anywhere else in the enterprise? Maybe in locations where your employees handle freight quoting, an eCommerce shopping cart, web site or customer service? We would be happy to discuss the use of desktop shipping in your organization.
Contact us or call 877.755.2374 today.
For more information on ADSI’s Rate-IT desktop shipping solution, go here. It’s flexible, easy to deploy and it can definitely help reduce your freight bill.
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