The 2020 Mid-Year Economic Update_long

How to Differentiate Your Company with Lower Shipping Costs

Technology tools can help distributors identify efficiencies and capitalize on them.
april-84x84

Logistical issues around moving product can affect distributors in many ways, including higher costs throughout the process.

“You’ll have high labor costs, just having to manage the process of trying to find the right carrier,” says Steve Norall, vice president of new business development at Cerasis. “High distribution costs, high management costs, lack of customer satisfaction tools.”

Adopting tools to increase shipping efficiency can lower your cost–to-serve and have ripple effects into other areas, including helping your company differentiate.

Dirk Beveridge, author of INNOVATE!, says he believes that quality employees from the millennial generation will be more likely to want to work for companies that offer them tools to make an impact in their jobs. And many companies are creating sustainability goals to reduce their carbon footprints, according to Jason Mathers, senior manager at the Environmental Defense Fund and author of multiple reports on innovating freight transportation models. Mathers says this business strategy is gaining popularity as demand for environmentally-friendly products and services increases.

Many technology tools exist to help distributors identify the ideal pathways for product to take. Norall says that software platforms will optimize freight options and place shipments in lanes that carriers prefer. Without that capability, some distributors are choosing to ship by rail to fill the gaps.

“The line haul is where they’re having issues getting the capacity to move that freight,” Norall says. “So what’s happening is they’re throwing it on the rail, but then when you throw it on the rail, you get service issues and you get service delays.”

Less-than-truckload (LTL) shipping is one solution, but manually identifying and matching multiple trucks with similar destinations and delivery windows can be time-consuming. This opportunity is another one that is optimized by software capabilities.

Read more about shipping efficiencies in Strategic Options for Increasing Shipping Efficiency.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.