Category: Shippers

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How the Right Transportation Management Software Can Reduce Labor Costs 

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As digital transformation continues to accelerate customer expectations for shipping speeds, inefficient, manual transportation management can be devastating to productivity. On top of slowing down processes, operations that rely on spreadsheets and cumbersome management methods quickly rack up unnecessary costs from inefficiency, especially when it comes to labor. That’s why transportation and shipping software is so important: it can provide frontline workers with the tools they need to work more efficiently, streamline operations, help optimize routes, automate processes, and even help small, medium-sized, and large operations function at the same level.

The right transportation and shipping software doesn’t just streamline operations and reduce different types of transport costs — it can generate significant savings on labor expenses at a time when profit margins need extra protection. Here’s what you need to know about reducing labor expenses and transportation costs with the right software.

How Transportation and Shipping Software Reduces Labor Costs  

Implementing a transportation and shipping platform is essential for streamlining operations and reducing transportation costs amid record-setting inflation. However, making processes more efficient through digitalization doesn’t just make life easier for employees — each of these benefits plays a direct role in reducing labor costs as well:

Streamlined Route Planning and Carrier Consolidations 

Manual logistics planning requires employees to painstakingly track variables like delivery schedules, vehicle capacities, and traffic conditions to create the most efficient and cost-effective routes and shipments. With such an overwhelming amount of information to juggle, not only do workers make more mistakes in planning — but the menial work also eats up a lot of labor hours. 

Transportation and shipping software automates route planning, scheduling, and carrier consolidation by using algorithms to easily identify opportunities to optimize each delivery. This eliminates much of the most mentally taxing work involved in planning and scheduling, which is especially important for small operations where the workforce may already be overutilized, and saves time in addition to reducing errors. By deploying transportation software, companies can easily scale their shipping volume without straining or expanding labor resources to maximize profit margins. In fact, BarProducts.com was able to reduce their labor expenses by 75%, and even lowered their error rate in the process. 

Reduced Administrative Burden 

When using spreadsheets and paper-based systems, employees have to manually enter and manage order, shipment, and invoice data — all critical and time-consuming work that can take many labor hours. The time and effort involved in coordinating with carriers and managing compliance documents only exacerbates labor and different types of transport costs — especially as shipping volumes increase. 

Transportation and shipping software can automate a lot of the tedious administrative processes involved in these operations,  streamlining order entry, shipment tracking, and invoicing, and virtually eliminating manual data entry and paperwork. By automating these tasks, the software not only reduces the risk of errors — it helps employees get more done in less time.

Automated Invoicing, Auditing, and Settlement 

A key benefit of transportation and shipping software is that it helps streamline the entire order process, including invoicing, contract management, and other key financial processes, all the way from the initial order to final settlement. Many platforms feature built-in auditing so users can easily track the status of any transaction within a single user interface.    

The software can also automatically deliver updates about order status, enhancing customer service metrics. Automating these communication tasks doesn’t just improve customer satisfaction and collaboration — it also frees workers to use their time more efficiently and focus on more value-driven tasks that increase revenue.

Integrations

With manual transportation management processes, employees must painstakingly move or replicate information across the different systems they use for order tracking, route planning, and other critical tasks. Integrations enable users to automatically export or sync data with other systems, reducing the need for manual data entry and the risk of errors, unifying workflows, and even expanding the types of services available to customers. This capability reduces time wasted and improves overall productivity, dramatically reducing labor and transportation costs in the process. 

3G: The Right Transportation and Shipping Software for the Job 

Controlling labor and transportation costs is critical for shippers to remain competitive in today’s ultra-efficient logistics environment — regardless of the size of their operation. Leading-edge transportation software can be a game-changer for companies that have outgrown spreadsheets and other manual methods of tracking their shipment. 

3G offers a full suite of software solutions to help optimize routing, trailer packing, carrier selection, invoicing, and other critical business processes — all crucial to holistically reducing labor and transportation costs. Experience the 3G difference with a free product demo. 

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April 10, 2024

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Recurring Costs Associated With Legacy Transportation Management Software in Shipping 

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Supply chains are only becoming more complex in terms of scale and the speed with which they move goods. With each passing day, we also see more and more of how limiting it is to use manual systems and track shipments with multiple tools, making it difficult to handle the high volume of shipments necessary to compete in this landscape. This gap in performance is now leading to inefficiencies, a high number of errors, and a lack of real-time visibility into the supply chain. 

When you continue to rely on manual systems to manage your shipments, you’re not just slowing down processes and inconveniencing employees — you’re also incurring tangible and unnecessary expenses for your operations, eating into profit margins and long-term success. Digital transportation management solutions are key to breaking through to higher profit margins. 

The Cost of Legacy Transportation Management Solutions 

Software has evolved to streamline every aspect of transportation management, but many shippers still use paper-based logs, spreadsheets, email chains, and phone calls to get everything done. Even when operations utilize more advanced digital tools, capabilities can be spread out across multiple solutions, creating more manual touchpoints and data silos. These inefficient methods of managing shipments use a variety of techniques and tools, but have one thing in common: They’re time-consuming, labor-intensive, and much more costly than necessary. Using these systems not only hinders your company’s productivity but can also incur additional expenses. 

Increased Labor and Administrative Costs 

Using spreadsheets and manual paper systems to manage complex shipments, order processing, invoicing, and auditing is incredibly labor-intensive. All the extra time workers spend on basic processes adds up to higher labor and administrative costs. In addition, when shipping routes aren’t planned for maximum efficiency, workers may need to build out and process extra shipments to meet order requirements, potentially increasing shipping costs over time. As automation comes to define the industry more, the legacy methods lacking streamlining capabilities dramatically increase labor budgets. 

Higher Shipping Costs 

Because manual processes are so time-consuming and cumbersome, they often hinder decision-making and lead to suboptimal planning. Trying to keep track of so much data in different files, it can be easy to overlook the best routes or identify the best carrier rates, leading to missed opportunities for savings. As a result, shippers might select more expensive carriers or inefficient routes, ultimately increasing overall shipping costs for companies. 

Excessive Inventory Costs 

Across the board, a lack of real-time visibility into inventory levels and efficient routes can cause shippers to hold more inventory than necessary, leading to increased warehousing and other costs. It encourages shippers to maintain higher inventory levels to avoid delays, requiring more storage space to hold the excessive inventory, ultimately increasing storage costs and tying up cash in items they might not need. The inefficient routing associated with legacy systems also leads shippers to build up safety stock to avoid delays in customer orders. 

Unnecessary Fuel Spending 

In addition to keeping drivers out on the road longer than necessary, poor and inefficient route planning extends mileage, resulting in higher fuel costs. The poor route visibility associated with legacy systems can also make it easy to overlook retailers with better fuel rates, causing drivers to spend more at the pump on top of driving unnecessary miles. 

Surprise Fees and Charges 

When routes aren’t optimized, drivers are likely to face delays in loading and unloading, resulting in detention fees and other charges from carriers. Drivers must also follow strict regulations about the number of hours they spend on the road before needing a break. Poor route planning can increase the number of layovers they require, potentially incurring additional costs. These unexpected fees add up quickly and can have a substantial impact on transportation budgets. 

Higher Risk of Error 

Manual spreadsheet and paper log systems create a higher risk of human error in order processing (such as delivery address data and shipping piece counts), or in meeting regulatory compliance standards, such as documenting driver hours of service, emissions data, and vehicle maintenance. Small mistakes can result in costly fines and penalties from regulators. What’s more, compliance mistakes with carrier and partner contracts can jeopardize relationships and even leave shippers open to lawsuits or lost revenue. 

Escape Recurring Costs With Transportation Management Solutions 

Spreadsheets, paper logs, and other manual transportation management methods may be cheap to implement, but the inefficiencies and errors cost shippers dearly in the long run. And unfortunately, upgrading to multiple digital solutions can leave your workflow just as scattered and cumbersome. What shippers really need is a unified transportation management solution that allows users to implement more automation, consolidate data for reporting, and integrate more effectively with other systems. 

A unified platform streamlines route planning, order management, carrier selection, freight payment, and more, allowing users to cut labor costs, reduce shipping fees, avoid accessorial charges, and more. Want to enter a new era of transportation management? Schedule a demo with 3G, today. 

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April 10, 2024

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The ROI Potential of a High-Quality Transportation Suite

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The logistics landscape is rapidly changing amid growing supply chain complexity, evolving customer demands, and global inflation. Shippers are caught in the middle of this upheaval, required to adapt quickly while maintaining profits. In this environment, embracing digital transformation is essential for shippers to remain competitive.

A transportation suite can help shippers overcome many of these challenges but comes with a higher upfront price tag than spreadsheet systems. Are they worth the investment? Here’s a look at how users have benefitted from implementation, and what advantages you can expect for your own operation.

The Pillars of a High-Quality Transportation Suite

What is a transportation suite?

A transportation suite is a comprehensive software solution designed to optimize and manage various aspects of transportation and logistics operations within a business or organization and integrates multiple modules and features to provide a holistic approach to transportation management.

In general, a transportation suite enables businesses to automate processes, streamline workflows, reduce costs, improve visibility, and enhance customer service.

What does a transportation suite do?

 

  • Improve Planning: Helps users optimize every shipment, including finding lower rates and consolidating loads to improve efficiency and reduce costs
  • Streamline Execution: Enables fast, reliable, and custom logistics plans while utilizing fewer resources
  • Build Stronger Connections: Facilitates deeper and more efficient collaboration with customers, carriers, vendors, and partners at-scale, and without error
  • Quote & Rate Shop: Rate shop across modes and carriers in a single place, to pick the right service level for the right price on each shipment
  • Improve Shipment Accuracy: Ensure the correct number of pieces are in a shipment or make sure the address is correct before sending to avoid delays and unnecessary fees
  • Shipment Compliance: Helps shippers meet the requirements of trading partners, customs authorities, and the U.S. Department of Transportation when shipping goods
  • Automate Manual Workflows: Streamline operational processes and enhance shipping efficiency by automating manual tasks within the suite

Reaping the Rewards of a Transportation Suite

A transportation suite will likely require a larger upfront investment than manual systems — both in terms of capital and resources for implementation — but it can quickly and dramatically pay itself off once it is in place. What’s more, by automating transportation processes, shippers can transform operations and realize significant cost savings and operational efficiencies that continuously improve profit margins over time.

The suite with the best ROI achieves results across a number of key performance areas — just look at what these companies were able to achieve:

Route Planning

A transportation suite can utilize a wide variety of variables and data points like distance, delivery windows, and carrier rates to quickly identify the most efficient routes for each shipment, minimizing mileage and reducing fuel costs. What’s more, the software allows users to make routing adjustments on the fly if there are changing conditions that could impact delivery. Bemis Manufacturing Company leveraged 3G’s routing capabilities to consolidate and streamline their line haul planning, dramatically reducing the price points for their distribution network below both competition and the industry standard.

Easy Optimization

A transportation suite allows users to quickly and effortlessly optimize multi-stop, less-than-truckload (LTL), and other complex shipments, not only reducing fuel and labor costs but also increasing shipping volume and generating more revenue. These efficiency gains lead to significant cost savings while helping shippers quickly scale operations without utilizing additional resources. In one case, after implementing a TMS, Green Circle Growers was able to generate over $600,000 in savings by better optimizing their multi-stop full truckloads.

Cost Effectiveness

In addition to utilizing map data to optimize routes, a transportation suite integrates directly with carriers for real-time rate visibility, allowing users to make more cost-effective carrier selections. Since transportation suites can track and organize so much on-the-ground data about each shipment, it’s easy for users to assess the performance of different carriers and how each vendor compares in terms of speed and value. Koch Foods was able to reduce freight spending by a double-digit percentage thanks to deeper carrier visibility provided by their TMS.

Maximize ROI With 3G

It’s important to choose a solution with a proven track record of helping users achieve results.

3G offers a full suite of solutions including shipping management platforms, a best-in-class carrier network, and robust ERP integrations, all designed to streamline transportation operations and maximize ROI. Since its inception, 3G has become a top choice for shippers seeking to streamline and scale their operations. Read other customer success stories to learn more about what our platform can do for you.

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Publish date

April 4, 2024

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Over the years, industries like e-commerce have steadily gained their place globally. The internet and technological advancements made it possible to buy and sell goods online, catering to approximately 5.3 billion internet users worldwide and counting. Behind the convenience of ordering goods online is warehousing, which helps facilitate the manufacture, import, export, and transfer of goods to your part of the world.

Business owners or logistics managers who sell physical goods aim to ensure the supply chain process runs smoothly. One solution is effective warehouse management and using 3PL (third-party logistics) with a 3PL warehouse management system.

While this strategy is good for business owners, third-party logistics companies face challenges. Warehouse capacity, workforce, employee safety, shipping cost, and technology are the top concerns of 3PL providers. Third-party logistics operations must continue evolving within all supply chain management aspects to stay competitive.

The Role of 3PL Warehouse Software

There are two main reasons why third-party logistics providers use third-party logistics software in their warehouses. The first is to ensure the efficiency of their services through digitalization, and the second is to improve their customer service by catering to the demands of their customers quickly and accurately.

During the pandemic, we saw the e-commerce industry boom, and with it came enormous demands from consumers. This boom also pushed 3PL providers to improve their processes to minimize the risk of error and ensure that products are delivered accurately when and where they need them.

Here are some key features and functionalities if you want to upgrade your system or know more about 3PL warehouse software.

Key Features and Functionality

Streamlining incoming process

  • Advance shipment notification (ASN) creation
  • Goods receipt
  • Automatic or manual bin assignment
  • Putaway using a mobile application
  • Temperature zones assignment
  • Catchweight-ready

Optimized order fulfillment

  • Create delivery
  • User-controlled wave picking
  • Route-based picking
  • Configurable stock allocation (FEFO, LIFO, etc.)
  • Picking using a mobile app
  • Shelf-life-driven order fulfillment

Better user control in dispatch management

  • Group deliveries into pickups
  • Order verification before dispatch
  • Loading goods and items
  • User-controlled loading bay management

Manage inventory

  • Create scope of physical inventory
  • System-generated counts
  • Perform counting using a mobile app
  • Review and reconcile inventory differences
  • Cycle and blind counting ready

Smart packing and shipping processes

  • Implement multi-level and qualified packing
  • Create smart consignments and consolidate delivery notes into one consignment
  • Print shipping notifications and documents
  • Connect with 250+ carriers out of the box
  • Print shipping labels and generate EDI messages and loading lists

Addressing common warehouse management challenges

Warehouse space or capacity

According to statistics, 80% of respondents from 3PL providers said that capacity is at the top of the list for warehouse management challenges. This is only natural because warehouses and distribution centers are only built based on the business’s needs during construction. Two more reasons for this are the rapid growth of the industry and the price hikes in real estate, which make it hard for warehouses and distribution centers to expand quickly.

To maximize the space of warehouses, 3PLs are starting to consider expanding vertically instead of horizontally. Using customized storage solutions like industrial shelving or pallet racks, warehouses can easily store added items without expanding. It is also helpful to know the layout of the warehouse and use materials that fit the space to improve the 3PL capacity and efficiency.

Lack of skilled labor and labor cost

Next to warehouse capacity, finding, retaining, and training qualified labor is the next big challenge when it comes to warehouse management. This is the effect of the sudden growth in logistics. Companies are expanding, so adding more personnel across job posts is necessary.

The issue then starts when companies need help finding qualified and capable employees to train and stay with them. In turn, businesses need to hire more workers, resulting in higher labor costs, slower business growth, and substandard services that can ruin the company’s reputation. 

To solve this, businesses need to find a way to increase the productivity of their staff by improving how the warehouse is organized. It is tied up with maximizing storage space, and by doing this, businesses can reduce the time needed to search for a product. Automation can also help speed up looking for items when the warehouse is understaffed.

Employee safety

Warehouses can be a risky work environment. Accidents can sometimes happen, and they can injure personnel and damage goods. The issue here is not just about safety but also the consequences that stem from it. The company can lose money paying for medical bills, paying for and replacing damaged products, and dealing with the disrupted warehouse operations.

Reducing accidents and ensuring the safety of the employees means conducting safety training, providing constant reminders of the protocols, and providing personal protective equipment (PPE) for the staff. Aside from the human aspect, regular equipment maintenance should be conducted. An added precaution is to have regular safety audits to identify potential hazards.

Fluctuating demands

Dealing with the fluctuating demands of the market is one of the biggest challenges that warehouse managers face. Consistent orders keep the business running, but even though the boom of the e-commerce industry has helped bring in revenue, 3PL providers have to deal with seasonal demands.

Seasonal demands mean that some products have a higher demand depending on the time of year. 3PL providers are responsible for anticipating when a particular product will have outpouring demand. This foresight is essential because it allows them to get enough inventory when needed or know where to store them when the time comes.

One of the best ways to prepare for this challenge is to conduct market demand research and follow trends, especially for in-demand products. You should also contact your clients to discuss updates and exchange notes about current demands.

Technology

Through the years, technology has become a leading player in improving people’s and businesses’ lives. Faster production, efficiency, and data accuracy are the only ways technology has been helpful in logistics, manufacturing, and e-commerce.

More and more people develop new and more advanced technology, and the need to adapt to better systems cannot be ignored. This also applies to 3PL warehouse management. It is a costly investment, but with the right software, you can easily apply customizations and reap the benefits of updating your system to address the company’s needs.

Choosing the best 3PL warehouse software for the business is a matter of choice. A thorough understanding of their processes is required so that all of the features and functionalities of the software can be effectively implemented. Failing to choose a system that would fit the requirements and needs of the company would only result in wasted technology and high costs.

Benefits of 3PL Warehouse Software

The seamless operation of a warehouse seems easy, but there are many moving parts. It is a complicated business, mainly dealing with large volumes and thousands of products. 3PL warehouse software is a fulfillment solution that replaces outdated and manual tools that may not work. 

Businesses across all industries have realized the benefits of using 3PL warehouse software in warehouse management, supply chain logistics, and business growth.

Scaling and growing business operations

In all businesses, time equates to money. Any downtime in your system is a missed opportunity for the business. The right 3PL warehouse software makes it easy for you to implement and update when you need to. E-commerce, or online shopping alone, is slated to reach about $8.1 trillion by 2026; it is better to anticipate this growth and be prepared to expand your operations in the future.

Cloud-based 3PL warehouse software programs allow you to update and customize your system with just a click, even without knowing how to code. Labor efficiency can also be increased by 40%, speeding up operations.

This convenience will give you more time to focus on time-sensitive tasks and other concerns that need attention.

Improved Inventory Management

Streamlining and simplifying your process is one of the aims of 3PL warehouse software. It also gives you the ability to access updated stock-related data and share it with people who are authorized to see it. Connecting the software with your shipping provider gives instant and real-time data like order status and stock levels.

Added features like producing advance shipping notifications for pick or pack demand, securing login details for your clients, and removing additional labor for creating and consolidating reports can also be possible when your 3PL warehouse software is paired with enterprise resource planning (ERP).

As a 3PL provider, imagine giving your customers a great experience with every transaction. Real-time delivery reports and updates for customers add to a positive customer experience.

Cost Reduction

There’s a reason why it’s essential to do things right the first time, all the time, especially in businesses. Any mistake is tied up with the cost, whether as simple as missing a delivery or an over or underweight in inventory.

75% of shippers reported that using 3PL services has contributed to overall logistics cost reductions. With businesses starting to trust 3PL providers more and more, they should be able to deliver reliable services to be competitive. 

A 3PL management software can help maximize and optimize the use of storage space through warehouse space calculations. Automating the warehouse workflow accomplishes tasks faster with minimal human intervention, which means accuracy and efficiency even with only a few personnel.

Selecting the Right 3PL Warehouse Software

Being clear on the benefits and what a 3PL warehouse software can bring to your business brings us to the question of “How to choose the right 3PL warehouse software?”

Factors to consider in software evaluation

There are multiple 3PL management software you can choose from, but what’s important is to pick the one that suits your needs the most. Below are nine key factors that you should consider asking for when looking for 3PL software.

  1. Easy Onboarding Process
  2. Integration
  3. Functions for scalability
  4. Advanced billing and report generation
  5. Login portal for clients
  6. Configuration or customizability
  7. Multi-client management
  8. Specialized inventory control functionality and tracking
  9. Customer support

To make your decision-making more manageable, here’s a checklist from Veracore where you can conduct a primary assessment of your needs based on the nine critical factors mentioned above.

Adapting to future trends is good, but knowing the technology your competitors are adapting to can give you an idea of whether you need to keep up with these trends or wait it out. This lets you look at your business and see where it stands versus other 3PL providers.

Integration with emerging technologies

You can integrate different technologies with your 3PL warehouse management software. These technologies can give you an edge in the evolving 3PL warehouse management landscape.

Augmented Reality (AR)

AR can be advantageous for your personnel when looking for the best routes around the warehouse and accessing real-time information about inventory status.

Virtual Reality (VR)

VR can be used for employee training and the onboarding process. The business can add a module where the staff can practice their skills in a virtual environment, which will help speed up the learning curve.

Delivery Drones

Drones are not limited to surveillance anymore; they can also be utilized in deliveries. Drones can provide faster delivery, particularly to traffic-congested or hard-to-reach areas.

As mentioned earlier, adapting to these emerging technologies is based on whether there is a need for the business to integrate them.

Final Thoughts

The use of 3PL WMS eases warehouse management pain points. The issues this software addresses give you a better opportunity to fine-tune your system and focus on tasks like planning and forecasting so you can be prepared for the coming months or years.

Third-party logistics services are becoming more competitive and in demand. An upgrade of your 3PL warehouse software might be a good idea if the business is growing rapidly, as it could only mean better service for your customers and higher revenue.

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The Real Cost of a Single-carrier Strategy

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In the fast-paced world of logistics, every penny spent on supply chain management counts – and nowhere is this more evident than in the decision to commit to an exclusive carrier strategy. Shippers, manufacturers, distributors, and retailers often believe that a single-carrier setup provides stability and predictability, but the reality is far more complex. By embracing this short-sighted approach, businesses restrict their choices and expose themselves to a premium that could reach as high as 30% of their shipping expenses. 

In this in-depth exploration, we’ll uncover the hidden costs of exclusivity in carrier partnerships and illustrate why diversifying your carrier base is crucial for not just cost-efficiency, but also customer satisfaction and supply chain resilience. 

The Downside of a Single-Carrier Approach 

For many businesses, sticking with one carrier might seem like a simple, hassle-free option. After all, it involves less administrative work, and it could potentially lead to stronger relationships with the chosen carrier. However, this strategy is not without its drawbacks. 

Limited Selection, Reduced Leverage 

By sourcing all shipping from a single carrier, companies inadvertently give up the power that comes with choice. Access to a variety of carriers means more negotiating power and the ability to leverage different service offerings and competitive rates. It’s akin to grocery shopping at only one store when you’re not tied to a single supplier, you have the freedom to shop around for the best value. 

Surcharge Sticker Shock 

National carriers typically impose surcharges during peak seasons or for specialized services, and these surcharges can quickly add up. However, these additional costs are not universal; for instance, some regional carriers may not pass these expenses on to their clients, providing a cost-effective and transparent shipping solution more in line with peak demand times. 

Flexibility on the Line 

A single-carrier strategy severely curtails shipping flexibility. With only one carrier, businesses are often limited in their ability to ship from all origin points, choose optimal delivery times, or switch to alternate routes when necessary. In an environment where customer expectations are continually evolving, this lack of flexibility can place a strain on service levels and brand reputation.  

Scope of Service Limitations  

Certain customers may expressly require delivery through specific carriers due to their existing infrastructure or service agreements. This constraint can lead to missed opportunities and potential conflicts with clients, underscoring the importance of maintaining diverse carrier partnerships to meet varying customer needs. 

Why You Should Diversify Your Carrier Base 

The advantages of a multi-carrier approach are not just theoretical – they translate into tangible benefits that have a direct impact on the bottom line.  

Weathering Supply Chain Disruptions 

In supply chain, disruptions are not a matter of ‘if’ but ‘when.’ When you rely on a single-carrier your vulnerability is heightened to logistical disruptions. Should the chosen carrier face operational challenges, such as strikes, weather-related delays, or systemic failures, the entire supply chain can be put at risk. Diversifying carriers can mitigate these risks, ensuring that any single point of failure doesn’t bring operations to a halt. A diversified approach mitigates the risk of these disruptions, allowing for quick pivots and ensuring the smooth continuity of operations, even in the face of unexpected events.  

Lowering the Cost of Transportation 

One of the most significant drivers of change in carrier selection is cost. By utilizing multiple carriers, businesses can select the most cost-effective option for each shipment, ultimately reducing their overall transportation spend.  

Meeting Evolving Customer Expectations 

Customers today expect a variety of shipping options, from the speed of delivery to the supplier. A multi-carrier approach provides the agility needed to meet these diverse demands and ensures that businesses do not fall behind in the race for customer satisfaction. 

The Path to Smarter Carrier Selection 

Choosing and managing multiple carriers may seem daunting, but with the right strategies and tools, the process can be streamlined and simplified.  

Utilizing Modern Multi-Carrier Shipping Software  

Multi-carrier shipping software can save time and money by automating the carrier selection process. These solutions, driven by intelligent planning and analysis, ensure that the best carrier is selected for each shipment, based on factors such as cost, service level, and historical data. 

Negotiating Smart Carrier Agreements  

When you diversify your carrier network, negotiating smart agreements becomes more critical. Focus on consolidating your overall freight spend instead of carrier-specific volume commitments to secure more favorable terms. 

Incorporate a 3PL into your carrier network  

Incorporating a third-party logistics provider (3PL) into your carrier network expands your carrier options and lowers costs. Shippers that partner with the right 3PL to leverage their pricing power to significantly reduce freight costs and their established carrier relationships to offer new customer services. 

Success with Multi-Carrier Strategies 

Case Study: ursource leverages 3G’s Carrier Network to optimize shipping and save $200,000 per year 

The ursource team embraced the multi-carrier strategy and implemented 3G to meet the needs of their growing business and customer expectations, which resulted in the following: 

  • Reduced shipping costs by $200,000 per year 
  • Use of regional parcel for a better choice of services and rates 
  • Combined LTL/freight with parcel zone skipping to optimize end-to-end shipping costs 

Read the ursource story here to learn more. 

Conclusion: The Multi-Carrier Advantage 

The multi-carrier approach is not just a band-aid for the wounds caused by an overreliance on a single carrier; it’s a strategic move towards building a more adaptive, cost-efficient, and customer-centric operation.  

In the complex ecosystem of supply chain management, the ability to pivot and adapt quickly can be the difference between profit and loss. It’s time for shippers, manufacturers, distributors, and retailers to reassess their carrier strategy and unlock a world of cost savings and operational agility. By transitioning to a multi-carrier approach, businesses not only lower costs but also position themselves as leaders in a market that values versatility and resilience.  

For those who are committed to crafting a supply chain that stands out for its efficiency and customer-centricity, the path is clear – and it’s paved with the benefits of a multi-carrier approach. 

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March 20, 2024

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The Ship Shape Strategy: Trimming the Fat Off Your Shipping Costs

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Shipping expenses can silently erode your profit margins. Particularly for businesses with an online footprint, navigating the complex logistics landscape and enduring carrier rate hikes requires shippers to stay vigilant. This intricate web of challenges often leaves shippers yearning for a roadmap to escape the expense-laden wilderness. 

If you’re in the business of moving products from point A to point B, you know that the key to winning the shipping cost game is efficiency. It’s not about slashing and burning, but about precision cuts that sculpt a lean, mean shipping machine.  

The Weight of Shipping Costs  

Understanding where your shipping costs originate is the first step in shedding unnecessary expenses. It’s a multifaceted challenge with many potential areas for savings, from identifying the most cost-effective carriers to perfecting the packaging that protects your goods. 

Major cost centers you need to consider: 

  1. Carrier Rates, Surcharges, and Surprise Fees: The base rates set by the carriers are often compounded by various surcharges like fuel & residential delivery, and address correction fees. 
  2. Packaging Materials: The simple equation of ‘bigger box, bigger cost’ underpins the impact of packaging materials on shipping expenses.  
  3. Labor: The need for additional workforce to handle rush orders, or inefficient warehouse practices, can significantly add to costs.  
  4. Return Shipping: A silent, sometimes monstrous, cost that creeps in post-sale and is often overlooked by shippers.  
  5. Software & Administrative: The tools and manpower to support the shipping process also bear financial weight.  

Shaving Dollars Off Your Shipments 

With the cost centers identified, it’s time to reveal what can be done that can lead to substantial savings. This section covers the optimal methods for slicing those shipping expenses. 

Efficient Shipping Tactics 

The path to efficient shipping is paved with strategic decisions and disciplined execution.  

  1. Right-Sizing Packaging: Utilize boxes that match the volume of the items being shipped, minimizing dimensional weight charges. 
  2. Carrier Diversification and Hybrid Services: Shop around and consider leveraging multiple carriers to get the best rate for each type of shipment. Combining the strengths of various carriers with local drop-shipping for last-mile delivery can reduce costs and improve delivery times. 
  3. Address Accuracy: Implement systems to ensure correct addresses on the first attempt to avoid address correction fees.  
  4. Batch Processing: Streamline the shipping process through batch orders and bulk shipping, reducing the time employees spend on individual orders.  
  5. Order Accuracy: Efficient shipping extends beyond timely delivery; it encompasses order accuracy and fulfillment precision which ensures that orders are picked, packed, and shipped accurately, minimizing errors and customer dissatisfaction. 

The Tale of Two Boxes 

Packaging is not just a protective measure; it’s an opportunity. Here are 4 ways that clever packaging choices can represent immediate shipping savings.  

  1. Eco-Friendly Materials: Not only can they lower costs, but environmentally conscious packaging options can also be a selling point.
  2. Custom Packaging: Fits more in less, reducing the need for excess filler material and lowering dimensional weight.  
  3. Utilize Poly Mailers: For non-fragile items, these lightweight mailers can mean significant savings on weight-based shipping rates.  
  4. Package Inserts: Marketing materials or thank-you notes can serve double-duty, reducing the need for separate mailings.  

Charting a Course with Technology 

The digital era has not only transformed commerce but also introduced a variety of methods to make the shipping process more efficient and cost-effective. In this section, we explore the tech solutions available to fortify a cost-conscious shipping strategy. 

Shipping and Transportation Software Solutions  

Modern shipping software has the capability to resonate well beyond purchasing discounts.  

  1. Real-Time Rate Shopping: Ensures that you’re always getting the best price for the shipping method you choose. 
  2. Integration with Marketplaces: Seamlessly sync orders from marketplaces with shipping systems, reducing manual data entry.  
  3. Multi-Carrier Support: The capacity to handle various carriers within one system can add a layer of insurance against service disruptions.
  4. Batch Label Printing: Drastically cuts processing time by printing labels for multiple orders at once.  
  5. Automated Returns: Providing customers with an easy-to-use return process can streamline and reduce the costs associated with return shipping. 

Conclusion  

Reducing shipping expenses is not just a matter of money; it’s about gaining a competitive advantage in a saturated market with ever-changing customer demands. Understanding how shipping costs affect financial performance and taking proactive steps to minimize them can boost profits and customer happiness. By leveraging innovative technologies and enhancing packaging strategies, companies can reap significant rewards beyond simple cost reductions. 

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March 20, 2024

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5 Shipping Fails that can Sink your Business Reputation

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Shipping, the silent engine that powers global trade, often stays unnoticed when it runs smoothly. However, when it falters, it becomes the focal point of customer dissatisfaction and can have a catastrophic impact on your business’s reputation. In a world that revolves around digital reviews and instant feedback, shipping mishaps are akin to iceberg-sized PR challenges. Here are the top five shipping mishaps that might lead your business astray, along with strategies to navigate back on course. 

1. Perils of Late Shipments 

Late shipments have significant repercussions. A 2023 industry report reveals that more than 69% of customers are unlikely to make a repeat purchase from a company due to delayed deliveries. This data underscores the crucial role of punctual shipments in upholding customer satisfaction and loyalty. Delays can trigger negative feedback and social media posts, greatly affecting a company’s reputation and deterring potential customers. 

Strategies for On-Time Deliveries: 

  • Reliable Partnerships: Building strong relationships with carriers and logistics providers ensures more reliable services.  
  • Contingency Planning: Unexpected delays can be less disruptive when there are backup plans in place. 
  • Transparent Communication: Keeping customers in the loop regarding any delays is a trust-preserving habit. 

2. The Domino Effect of Missing or Damaged Items 

When items arrive missing or damaged, the ripple effect on customer trust and business reputation can be profound. According to a survey conducted by Packaging Digest, nearly 34% of consumers have received an online order with damaged goods, and an astonishing 45% reported receiving packages with missing items at least once in the past year. This level of discrepancy not only leads to immediate customer dissatisfaction but also raises significant questions about a company’s quality control and overall reliability.  

Strategies to Mitigate Risks of Damage and Loss: 

  • Quality Packing Materials: Investing in durable and appropriate packaging can drastically reduce the chances of damage. 
  • Barcode Scanning: Using barcode scanning drastically reduces item and quantity mistakes in packing; scanning is 5-7x faster and 10,000 times more accurate than keyboard data entry. 
  • Inventory Management Systems: Implementing sophisticated inventory management can help ensure accurate order fulfillment. 
  • Carrier Accountability: Establish clear accountability measures with shipping partners to address mishandling. 

3. The High Cost of Expedited Shipping: A Double-Edged Sword 

Offering expedited shipping has become a quintessential requirement for businesses aiming to stay competitive, especially in the e-commerce space. However, this convenience comes with a steep price, both literally and figuratively. These elevated costs not only affect profit margins but can also set unrealistic expectations for delivery times among consumers, creating a scenario where satisfaction is harder to achieve consistently. 

Strategies to Balance Expedited Shipping Costs: 

  • Dynamic Pricing Models: Implementing flexible pricing for expedited shipping can help offset costs. Leveraging a multi-carrier shipping software can provide this flexibility and even allow you to shop different modes for the best pricing and delivery window options. 
  • Customer Loyalty Programs: Offering expedited shipping as a perk for loyal customers can enhance value without broadly impacting margins. 
  • Efficient Logistics: Streamlining the logistics process can reduce the time and cost associated with expedited deliveries. 

4. Addressing Mistakes: More Than Just A Detour 

Errors in address information not only delay shipments but can substantially inflate operational costs. A study by the USPS revealed that address errors can add up to $45 per package in operational costs. This mistake is also one of the leading causes of returns and lost packages, further affecting customer satisfaction. 

  • Strategies to Overcome Address Related Errors: 
  • Use of Address Verification Software: Implementing software that verifies addresses in real-time can significantly decrease the likelihood of errors. 
  • Customer Double-Check: Encouraging customers to review their shipping details before finalizing orders can catch mistakes early. 
  • Data Cleansing Practices: Regularly updating and cleansing customer data ensures accuracy and reduces shipping mishaps. 

5. Packing List Errors: The Ripple Effect on Vendor Relations 

Packing list errors, though seemingly minor, can have significant repercussions throughout the supply chain. A survey by Logistics Management found that nearly 30% of returned items were due to packing list errors. Such mistakes can lead to confusion, returns, and even lost revenue, straining relationships not only with customers but also with vendors and suppliers. These errors cast doubt on a business’s operational efficiency and can degrade trust over time, posing long-term challenges to maintaining strong business relationships. 

Strategies to Reduce Packing List Errors: 

  • Automated Packing Solutions: Leveraging technology to automate the packing process can greatly minimize human error. 
  • Regular Training: Ensuring that staff are well-trained and aware of the importance of accurate packing lists. 
  • Quality Control Checks: Implementing stringent quality control measures before shipments leave the warehouse can catch errors early. 

Real-world examples of how 3 shippers are improving their shipping to foster positive customer and partner relationships 

Intelligentsia Coffee reduces days with missed targets by 80% and ships with 99% accuracy 

By focusing on accuracy, reliability, and customer communication, Intelligentsia coffee managed to improve their shipping accuracy to near perfection. This not only enhanced their customer satisfaction ratings but also significantly reduced the operational costs associated with shipping mishaps. Intelligentsia’s story underscores the importance of adopting a proactive approach towards shipping and logistics, demonstrating that with the right systems and practices in place, businesses can turn potential shipping fails into powerful tools for building a solid reputation. 

TrakMotive is now serving a broader customer base and improved their accuracy to save over $19K annually in retailer fees

Manual keystroke errors presented a significant hurdle for TrakMotive. However, the introduction of 3G has enabled them to streamline shipment processing by implementing scanning and minimizing keystrokes. This seamless data flow effortlessly integrates across all their database and supply chain systems. By incorporating integrated carrier options, TrakMotive has successfully expanded its reach and enhanced service for a wider customer base. Discover more by watching the customer video to hear insights from their VP of IT & Risk Management, and delve deeper into the story by reading it here. 

Home City Inc. improves accuracy with address validation and minimizes delays and carrier imposed penalties

Home City Inc., by implementing 3G’s address validation module, has significantly improved their shipping accuracy, leading to a decrease in delays and a reduction in carrier-imposed penalties. This strategic move has not only streamlined their shipping process but also bolstered their reputation for reliability and efficiency in fulfillment. For an in-depth look at Home City Inc.’s success story, see the full details and watch the video here. 

Conclusion 

In the fast-paced world, your shipping operations can make or break your success. By avoiding these common shipping fails and investing in quality control, dependable carriers, and transparent practices, you can ensure that your business reputation remains afloat in the sea of competition as a trusted partner to your customers. Remember, in the world of shipping, the smoothest course is always the one of meticulous preparation and careful execution. 

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March 19, 2024

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Revolutionizing Rate Shopping: The 3G Pacejet Shipping Contract Rates Module

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In the labyrinth of the LTL freight market, where consolidation coexists with fragmentation, finding the best rates can be a challenge. The dominance of the top 25 carriers leaves a substantial portion of regional carriers untapped. Enter the connectivity game-changer: API. While national carriers leverage API connections for efficiency, smaller regional carriers often lack this convenience, leading to untapped cost-effective capacity. 

The Connectivity Conundrum 

API connectivity, once a boon, has inadvertently become a barrier for regional carriers without the resources to invest. This has allowed national carriers to accelerate rate increases, despite lower-cost alternatives available with local and regional carriers. With market dynamics shifting, how can shippers leverage the situation without sacrificing the efficiency of cross-carrier rate shopping? 

Introducing the 3G Pacejet Shipping Contract Rates Module 

3G takes the lead in addressing this challenge with the introduction of the Pacejet Shipping Contract Rates Module. This innovation makes our shipping software a single access point for all your contracted LTL rates, irrespective of the carrier or connectivity method. Now, cross-carrier shopping is convenient without compromising access to all available rates and services. 3G customers using the Pacejet Shipping platform can seamlessly integrate this module, enhancing their rate shopping capabilities. 

Curious about how this industry-leading feature can benefit your shipping operations? Reach out to our sales team and discover the future of rate shopping with 3G. 

Thank you for joining us on this journey through the intricacies of LTL logistics. We look forward to shaping the future of shipping together. 

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March 3, 2024

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Embracing Regional LTL: A Versatile Shipping Solution

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In the world of shipping, Less Than Truckload (LTL) stands out as a versatile over-the-road mode, catering to businesses of all sizes with diverse shipping needs. While many are familiar with its application, the lesser-known benefits of leveraging regional LTL carriers can spark innovative ideas. Let’s explore two powerful ways regional LTL can drive efficiencies when utilized effectively. 

Capacity Sourcing & Utilization 

Freight capacity is a common concern in any market, and LTL is no exception. The top 25 North American carriers dominate 80% of the total LTL capacity, granting them significant pricing power. However, the remaining 20% lies with hundreds of smaller regional carriers, often overlooked due to technology gaps. Bridging this gap through third-party technology opens up substantial capacity, benefiting shippers with existing contracts or those considering regional carriers. 

Negotiation-Free Spend Reductions 

Reducing shipping costs often involves negotiating lower rates, a challenging and uncertain endeavor. Regional LTL offers an alternative by empowering shippers to shop across carriers, gaining control over costs. Beyond carrier selection, efficient rate shopping and automation through shipping software reduce labor costs, putting shipping back under your control. It’s about implementing tools for optimal decision-making without solely relying on large carriers. 

As we delve into the dynamics of regional LTL, remember that knowledge is only half the battle. The other half is implementing the right software to control your LTL shipping operations. Curious about your options or looking for ways to enhance efficiency? Let’s start a conversation! 

Stay tuned for the final chapter, where we unveil a groundbreaking solution for rate shopping across LTL carriers. 

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March 2, 2024

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Unlocking LTL Excellence: A Customer-Centric Journey

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At 3G, we cherish the wisdom shared by our customers, recognizing that their insights not only strengthen our relationships but also shape the way we perceive our industry. Recently, during a vibrant focus group involving five esteemed manufacturing and distribution partners, we delved into their perspectives on Less-Than-Truckload (LTL) logistics and unearthed their key priorities. 

Navigating Top LTL Subjects 

In the dynamic realm of LTL, our customers highlighted three crucial subjects: shipment and load consolidation, customer-directed carrier selection, and the importance of packing flexibility. 

Shipment & Load Consolidation 

Efficiency is the name of the game in LTL logistics. When numerous small orders share a common destination, consolidation emerges as a cost-effective transportation mode. Whether it’s consolidating multiple orders from a single customer or combining orders from various customers in a geographic region, the potential for savings and reduced environmental impact is significant. However, our customers expressed a common desire for a streamlined consolidation process, emphasizing the need to make LTL consolidation more accessible. 

Customer-Directed Carrier Selection 

Empowering customers to choose their preferred carriers is a common practice, but it comes with challenges. While customers may have negotiated favorable rates, operational optimization becomes a concern for shippers. Timely pickups and seamless connectivity are essential, and late pickups can lead to congestion and data inaccuracies. Our focus group revealed the need for efficient data transfer and addressing challenges associated with customer-directed carrier selection. 

Packing Flexibility 

Consolidation’s effectiveness hinges on packing flexibility. Streamlining the packing process, especially in multi-level scenarios with EDI transmissions, is crucial. Simplifying carton-level consolidation and pallet construction processes can enhance efficiency and ensure on-time deliveries with no penalties. 

At 3G, our commitment to customer feedback has driven us to build comprehensive transportation systems. We understand that continuous improvement is key, and we invite you to explore how 3G can meet your current needs, fulfill future requirements, and shape the future of logistics together. Reach out – we’re eager to hear from you! 

Stay tuned for the next installment, where we explore the significance of regional and local LTL carriers in the logistics landscape. 

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March 1, 2024

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