Smarter Shipping: How to Optimize Your Shipping Strategy and Reduce Costs

For many businesses, shipping is a significant expense that can eat into profits. Fortunately, there are ways to optimize your shipping strategy and reduce costs without sacrificing the quality of your service. In this article, we will explore how smarter shipping can help you save money and improve your business's bottom line.

Substituting Air Shipments for Ground Shipments

One way to save money on shipping is by substituting air shipments for ground shipments when the ground time-in-transit is 1-2 days. Ground shipping is often less expensive than air shipping, and if the delivery time is within a day or two, it can be just as effective. By choosing ground shipping, you can reduce costs and still meet your delivery deadlines.

Reducing Package Size to Save on Dimensional Weight

Another way to save on shipping costs is by reducing the size of your packages. Many carriers use dimensional weight to calculate shipping costs, which takes into account both the weight and size of the package. By reducing the size of your package, you can save on dimensional weight and ultimately reduce your shipping costs.

Additionally, reducing the size of your packages can also help prevent damages during transit. When packages are too large, the contents are more likely to shift around and get damaged. By using smaller packages, the contents are more secure and move around less within the box, reducing the risk of damage.

ShipMatrix: Helping Businesses Save on Shipping Costs

ShipMatrix provides shippers with the online solutions that helps businesses optimize their shipping strategies and reduce costs. One of our clients reported that they were able to reduce their transportation spend by 12.5% by converting eligible air shipments to ground, resulting in over $1 million in annual savings.

ShipMatrix's software analyzes shipping data to identify opportunities for cost savings. By examining factors such as carrier rates, delivery times, and package sizes, they can identify the most cost-effective shipping methods for each shipment. With ShipMatrix, shippers can save money on shipping costs without sacrificing the quality of their service.

In conclusion, smarter shipping can help businesses reduce their shipping costs and improve their bottom line. By substituting air shipments for ground shipments, reducing package sizes, and using tools like ShipMatrix, businesses can optimize their shipping strategies and save money on shipping costs. By taking a proactive approach to shipping, businesses can improve their service and their profits.