Least Cost Routing- A Better Way to Ship
With the growing popularity of online shopping, one of the biggest appeals for the consumer is the convenience. After all, what is not to love about browsing from the comfort of your home, placing your order, and having it turn up at your front door within a few days with no added shipping fee? Or, if you are impatient, paying extra for next-day delivery? It sure beats driving around from store to store!
However, at the other end of the transaction, one of the biggest headaches for the shipper is figuring out which shipping method costs the least. And it’s not a minor issue- even a difference of a few cents per order can quickly add up to thousands of dollars, depending on the volume of sales! This has an impact on the bottom line of not just manufacturers, but also 3PLs.
With the number of available carriers out there, it’s a major investment of valuable time to have to manually check every single parcel against even just the main carriers such as USPS, UPS, and FedEx. There are just so many variables for every order, including delivery time, weight, size, where it’s shipped from, and where the customer is. The money spent paying someone to make that calculation and decision for every single order would be much better spent elsewhere in the organization.
Luckily, there is a solution. Our software has “Least Cost Routing” built in. When an order is placed, all the variables are automatically applied to the calculation of the shipping cost at all the main carriers. Those variables include the dimensions of the package, which can make a huge difference to the shipping cost, and are not included in all “Least Cost Routing” software programs.
The software automatically selects the most cost-effective method of shipping out the order- thus saving money in both the shipping costs and in manpower. It’s a win-win situation. Whether your business is large or small, our “Least Cost Routing” software will help you grow your online sales profits!