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Minimize shipping operation costs with data analytics

by BlogSpend Intelligence

As the trend to shop online is increasing among customers, it is essential to have a robust shipping operation. Towards this end, shipping data analytics enable businesses to make better decisions and improve shipping performance.

Optimize the shipping operations of a company by keeping track of shipping orders and inventory. This blog will try to understand the steps involved in optimizing shipping processes. In addition, we will explore the different ways businesses save money by utilizing shipping analytics.

Optimization of shipping operations

Shipping costs make a massive impact on a company’s budget. Optimizing shipping operations helps in cutting shipping costs for companies. A few vital steps are involved in optimizing shipping operations and boosting profit margins. These steps include:

  • Use of historical data to track shipping performance
  • Analyzing real-time data for seamless operations
  • Utilizing automated, easy-to-use dashboards
  • Reducing hidden costs with shipping analytics and
  • Partnering with parcel audit services to diagnose pain points

Improving shipping operations

Enhance shipping operations with proper planning and cost-effective use of resources. Shipping processes like packing parcels will affect shipping costs. Moreover, choosing the best shipping option will affect the shipping budget. An efficient transportation management system (TMS) aids companies in optimizing their shipping operations. TMS creates transparency as companies can track shipments in real time. In addition, shippers can take advantage of aggregating multiple shipments into one order, thus saving money. Further, companies expand their businesses with different shipping routes and modes of transportation. Automated software systems and data security enhance the shipping operations of a company.

Optimization of Freight

Freight optimization involves reviewing possible modes of transport for a shipment. Diversifying vendors and carrier networks is an efficient way to secure competitive freight rates.  Further, freight shippers can explore multiple routes for better markets with a freight management system. Companies can leverage the right software to stay ahead of the competition. In addition, shipping data analytics will affect the growing freight management systems.

Role of shipping data analytics

Shipping logistics management is possible with the help of automated software. With cost modeling tools and predictive rate simulation, shippers can understand their shipping expenses. In addition, a better review of delivery routes allows companies to leverage the dynamic rerouting of parcels. It prevents shipment delays so that time-sensitive and urgent shipments reach on time. Further, customer satisfaction increases with more information about the updated delivery status of shipments.

Predictive rate simulation allows shippers to visualize the shipping spend on package weights, zones, service levels, etc. Predictive analytics is to understand to determine where delays will likely occur. In addition, it helps to boost customer service levels. Moreover, Big Data in the shipping industry provides valuable insights to minimize late deliveries.

Big Data in Shipping

Big Data enables shippers to predict and address problems, prevent shipment delays, and gain a competitive edge. The different ways in which businesses can make use of Big Data in optimizing shipping operations include:

  • Reduce shipping costs with actionable insights into carrier contracts: with big data and shipping analytics, shippers understand shipping expenses.
  •  Make strategic decisions: real-time Big Data analysis helps to recommend the best decisions for companies.
  • Recognize potential frauds: Shipping analytics solutions identify shipping patterns and detect multiple payments

Big Data in maritime analytics affords efficient bunkering, crew management, efficient cargo handling, tracking goods, fleet tracking, detecting anomalies, and more Predictive analytics is transforming the shipping industry by enhancing the safety of ships and environmental protection.Big Data controls parcel expenses with actionable intelligence. It offers valuable insights to shippers about shipping costs.

Optimizing Business Intelligence

Business Intelligence tools consider special handling and accessorial fees in calculating shipping rates. Further, business intelligence offers insights to companies on past and recent shipment movements. It provides information about how the competition behaves and knowledge about emerging markets. BI tools help to analyze massive amounts of data quickly. Audintel‘s state-of-the-art BI platform helps track shipments, refunds on late deliveries, and more.

Optimize shipping operations with Audintel

Shipping operations are improved with proper planning and by adopting the best practices. Parcel invoice audits identify errors in shipping operations, such as fuel surcharges, total spending on shipping, etc. Audintel offers parcel invoice audits to shippers for their shipping operations and helps save money. Our Transportation management system (TMS) services guide shippers on the different aspects of shipping parcels. We provide insights into carrier contract negotiations with shipping data analytics. Our team helps shippers cut shipping costs and optimize their shipping operations.

Conclusion

Operational efficiency is essential for a business to be more profitable. Optimizing shipping operations with accurate planning and bagging the best deals is vital for shippers. A robust auditing system with BI tools increases a company’s shipping efficiency and lowers operation costs. Audintel has a wide range of BI tools and state-of-the-art dashboards that transform the shipping operations of companies. We provide the competitive edge to operate efficiently in the marketplace. To know more about our services and BI platform, contact us at +1 (619) 354 8539 or visit our Audintel website.

optimixze

How do analytics & BI tools help optimize shipping costs?

by BlogSpend Intelligence

Optimization of parcel shipping costs is the goal of shippers. Data Analytics is helping shippers achieve this goal. Shipping contract negotiations help in getting the best rates from carriers. Similarly, new shipping software solutions give shippers insights to reduce parcel costs. In this blog, we will discuss the steps required to optimize shipping costs using data analytics.

Importance of analytics in the supply chain industry

There is an increasing demand from customers to deliver their orders on time. In addition, they expect free benefits from shippers. Shippers have to meet these demands and contain expenses. Data analytics is helping shipping companies meet the demand of customers. They can control the information overload by using Analytics. Further, Business Intelligence (BI) tools analyze shipping trends of companies. These tools are helping to improve shipping efficiency and reduce parcel costs.

Five steps to optimize shipping parcel costs

The steps that shippers take to improve shipping costs for parcels are:

1. Monitor performance of shipping carriers and their services

Real-time shipping data helps shippers to understand the performance of shipping carriers. For instance, with the data, they can identify if the parcel’s delivery is on time. Similarly, shipping carriers provide services like Ground, Express, Priority Overnight, and more. With data analytics, shippers can choose the service that will meet their delivery requirements. Audintel suggests alternate low-cost services for small parcel shipping.

2. Understand distribution zone usage

Today, customers are concerned with fast shipping time. So, shippers need to understand the different distribution zones for shipment. They have to consider the distance between the shippers’ location and the customer’s location. Further the packages are shipped, the more it will cost the shippers. Data that understands distribution zone usage is essential. It will determine if the shippers need to outsource the parcel to a central fulfillment center. By making small changes in the carriers operating in distribution zones, shippers can save additional costs. Audintel offers unique software solutions to shippers with discounts depending on zones.

3. Weight of packages

Data analytics gives insights on the way to handle shipments. They help in addressing issues related to parcel weights. Shipping carriers charge for bulk shipments. Combining multiple parcels and of differing weights together in a single package is a cost-effective strategy. DIM divisor influences the pricing of parcel weights. Alternatively, the dimensions of the parcel are more. Then shippers end up paying more for freight shipping. Shippers can reduce dimensional weight by making smaller packages. The dimensional weight analytics provided by Audintel aids clients in saving parcel costs.

4. Monitor special handling and associated fees

Analysis of weekly parcel data gives insights into the additional charges affecting shippers. Evaluation of accessorial fees is necessary to know the charges levied by carriers. In addition, it is vital to monitor the special handling fees. To avoid Residential delivery fees, shippers can use U.S. Postal Services (USPS) as last-mile delivery, thus saving money. Furthermore, Analytics gives shippers the freedom to ask for discounts from carriers. Audintel provides software solutions to help in mitigating the pain points of parcel shipping.

5. Outsource to a third party for contract negotiations

By aligning with a third party, shippers can reduce parcel freight rates substantially. Incidentally, it amounts to up to 40% savings for shippers. Third-party experts can negotiate with carriers like UPS and FedEx for discounts. They have helped in reducing surcharges. In addition, the negotiations done by outsourced experts give a competitive edge to shippers.

Audintel’s role in optimizing shipping costs

Audintel has an evidence-based learning software system. It is a one-of-a-kind software system that evaluates a client’s shipping profile. The experts at Audintel support clients with contract proposals and negotiations. Based on the historical shipment data, Audintel gives suggestions to clients for reducing parcel costs. Audintel helps its client realize its goal of cost-effective negotiations. Shipping data analytics helps its clients adopt long-term and cost-saving services.

Concluding remarks

Big data analytics is changing the supply chain industry. BI tools help in gathering relevant shipment information, useful for shippers. Analysis of shipping data helps shippers strategize ways to reduce shipping costs.

Audintel uses analytics to cater to your shipping needs. For further details, write to us at [email protected] or contact us at +1 (619) 354 8539. Please visit our Audintel website.