Expedited Shipping Can Save Money
As shipping delays and supply chain issues pile up across the country, more businesses struggle to ship and receive products on time. When companies fail to meet important deadlines, the results can be costly, leading to the loss of valuable customers and vendors.
Fortunately, the use of expedited shipping services can help mitigate these risks. Experienced freight companies can identify the quickest and most cost-effective transportation methods while also helping to prevent financial loss caused by absent or late shipments.
Once you’ve established a working relationship with a reputable freight service, your account information, needs, and any special requests will be saved in their customer database. That means that the next time you contact them, you’ll spend less time explaining your situation, getting your inventory en route even faster.
Why Expedited Shipping Services?
While expedited shipping options are typically more expensive than standard freight services, they offer numerous benefits.
Meet tight deadlines. Missing or late shipments that fail to meet deadlines can be disastrous for small and mid-sized businesses, leading to massive losses or penalties due to corporate chargebacks and lost sales. Damaged or missing cargo, perishable items, and hard-to-replace products often have the strictest deadlines, and failing to meet them can severely damage your bottom line.
Streamline the transportation process by sending freight directly to the consignee as soon as it’s picked up. That means your inventory won’t waste unscheduled time sitting in a storage facility or warehouse, reducing the risk of lost profits. Depending on the industry, just one hour of downtime (caused by lack of equipment or tools) can cost anywhere from $85,000 to $1 million.
Don’t pay for storage. More organizations utilize just-in-time inventory based on their production cycles. This means that supplies arrive only when needed, lowering overall costs. Maintaining the warehouses that store these items can be expensive since the facilities have to carry insurance, hire staff workers, and implement temperature control—leading to higher costs.
Utilizing expedited shipping services to order supplies when necessary eliminates the need for storage space, saving time and money without interrupting production.
Know your inventory is secure. Because your inventory remains on the same vehicle during the duration of its journey, there’s minimal handling, resulting in a much lower chance of damage or losses. Businesses also have the ability to track inventory in real time 24/7/365.
The ability to plan ahead. Planning months or years in advance can help businesses prepare for future demand, maintenance, upcoming supply chain shortages, and more.
Many organizations only utilize a single pallet per shipment when sending or receiving goods. However, they’ll save money in the long run if they order enough supplies to fill all the available space since they’re entitled to exclusive use of that vehicle.
By taking time to evaluate the total cost per shipment and establish a working relationship with a trusted expedited shipping provider, businesses can determine exactly what they’ll need over the next year, combining multiple orders into fewer shipments and reducing overall spending.
Save money over time. Expedited shipping offers security, helps you meet tight deadlines, reduces storage costs, and allows your business to plan ahead. Real-time tracking updates and less handling also ensure a damage- and loss-free delivery with no downtime.
While supply chain disruptions may continue for a while, expedited shipping services can reduce their impact.