The Shipping Equation

Balancing Speed and Savings: The Shipping Equation

In today’s impatient world, speed reigns supreme. Consumer demand for rapid fulfillment pushes many companies to focus intensely on shipping orders as swiftly as humanly possible. This reactionary approach certainly pleases consumers in the short term. Yet over the long run, prioritizing speed above all else packs a hefty price tag that cuts deeply into profits across industries.

The True Cost of Speed

Getting orders out the door in record time looks impressive on paper. But it necessitates maintaining a largely one-to-one ratio between orders received and shipments sent, without pausing to consider efficiency. According to Echo Global Logistics Executive Vice President Mike Mobley, this failure to consolidate deliveries translates to “a one-to-one order to shipment [scenario], which isn’t very transportation-efficient.”

In other words, unless companies build in a buffer between intake and output, they lose critical visibility into upcoming shipment volumes across their distribution networks. This lack of visibility bars logistics experts from spotting opportunities to opportunistically bundle shipments in cost-effective ways. Ultimately each order gets handled individually, rather than coordinating loads holistically to minimize miles. This hurried approach squanders savings in both dollars and fuel.

The Power of Optimization

Fortunately, a better way exists. Most Echo clients can pocket 10-15% shipping savings by taking one deceptively simple step: building a 1-2 day buffer between order receipt and dispatch. This brief pause provides insights into brewing shipment volumes, serving as the foundation for load optimization. With improved visibility, shippers and logistics partners can strategically consolidate deliveries to reduce excess miles. For high-volume shippers especially, optimizing load efficiency quickly generates major cost savings.

Take the example of one Echo client shipping inventory from multiple distribution centers nationally. By sharing order data just one day before the requested pick-up date, the company enables Echo to return a recommended load optimization plan to be executed the very next day. This agile adjustment slashes shipment costs almost immediately while upholding strong customer service.

Widespread Benefits of Optimization

In truth, optimizing shipments benefits all supply chain players in tangible ways, not just company bottom lines. Streamlining logistics cuts unnecessary costs out of the system, empowering shippers to offer more appealing prices that directly boost customer satisfaction. From an environmental angle, reducing mileage substantially decreases the carbon footprint generated across the delivery process.

And since bundled loads travel more efficiently, they reach their destination with less risk of delays, damage or losses. By taking a holistic view of shipments and proactively addressing inefficiencies, companies can actually improve product quality from factory to doorstep.

Adapting to Drive Efficiency

Transitioning to an efficiency model undeniably requires supply chain agility and tight customer coordination. Shippers must communicate changes proactively with clients to realign expectations surrounding quoted delivery times. But this temporary adjustment opens the door to long-term savings that strengthen the shipping equation.

With thoughtful transparency and planning, companies can balance consumer urgency with cost control to drive responsible growth. The quantifiable rewards of optimization make adapting operations worthwhile across sectors. By consolidating select shipments with strategic delays, the shipping industry can uphold standards of speed and savings that bolster client loyalty over the long haul.

By leveraging their expertise and resources, Lading Logistics aims to provide efficient and reliable international shipping and logistics solutions for their clients.