Companies that sell products know how important, and time consuming,
it can be to get products out the door. So when does it make
sense to utilize shipping software in conjunction with your order
entry program to make the process more efficient?
Even for companies that only ship a few packages at a time, the days
of manually writing entries in the shipping log are long gone.
Today, all of the major freight carriers allow you to create shipping
documents and labels online. But that's only half the battle, isn't
it?
You are still left with the data entry in both the freight system
and order entry. Plus, what if you have other considerations like marking
up freight or dealing with LTL (less-than-truckload) carriers that
don't provide online shipping? When does it make sense to integrate
the shipping function as part of your order processing solution?
To help answer that question, lets take a look at one company that
faced the same questions and what they did to answer them.
As a distributor of specialty wood cabinets,
this company currently ships anywhere from 70 to 300 boxes per
day. However, their volume wasn't this high when they began using their
Sage Software solution.
Using a combination of standard and LTL carriers, they originally
created shipping labels manually, and where appropriate, created stencils
for multi-package shipments. Even though they began to utilize
the online capabilities of the standard carriers, they were still left
with the duplicate data entry issue. Over time, it also became more
difficult to repair and obtain the fluids needed for the stencil equipment.
After carefully identifying their needs, and soliciting advice from
their freight carriers, they implemented freight shipping software
that integrated directly within their Order Entry application.
In doing so, they found the following benefits:
- Since the shipping documents are now created from the information
already in the accounting database, errors from re-typing
mistakes were virtually eliminated. Considering that correcting those
errors cost them anywhere from $50-$100
per correction, these savings alone covered the cost of the application.
- They estimate that they are saving at least 2-3 minutes in processing
each package and are now able to handle multiple times the numbers
of packages, in less time, than they did when using their non-integrated
method.
- Their solution allows them to automatically handle freight tier calculations
and even markup the freight charges directly within Order Entry.
Better yet, the information, including tracking, is available within
Order Entry for everyone to access, streamlining customer service
issues.
Probably most telling, is the attitude of the shipping department
to the solution. While
there was the normal anxiety in replacing a well established system,
there is no way that they would consider going back to the previous
method. In fact, during an unplanned network issue, they didn't stop
grumbling about having to do things "the old way."
Obviously, every company has unique requirements in many areas
and shipping certainly is one of them. However, if your company does
ship packages as part of its daily operations, we're fairly confident
that you may also benefit from utilizing an integrated freight solution.
Let us know. We'll be happy to discuss your situation and help your
shipping department move on from "the old way."