What defines scalability in More Than Shipping modern shipping? There are many ways to approach the topic of scalability. In truth, scalability includes the cost-effective movement of goods, but it also infers a need to create operations that can accommodate changing business needs. Unfortunately, parcel is an area of much debate in both scalability discussions.
According to ReveelGroup, parcel shipping remains an area of logistics subject to misconceptions and higher costs per shipment or costs per hundredweight. Shippers and logistics service providers need to understand how a robust parcel strategy can make the difference between failure and success.
What Do Supply Chain Leaders Misunderstand About Parcel Shipping Strategies?
Parcel shipping, despite the average size per shipment, is still a significant business. And, it is growing exponentially with the rise of e-Commerce and growing customer demands for faster and more cost-effective shipping.
This is the fundamental problem of parcel strategies. They are often defined by their smaller size, compared to traditional, palletized freight. Reality reveals parcel is much larger, but obviously not in its physical size. The fact that parcel comprises the majority of e-commerce purchases shows that parcel shipping is not a mode to be ignored. Shippers need renewed strategies to rein in soaring costs. Parcel shipping has grown to the point where the major carriers, including USPS and UPS, are having trouble keeping up with demand. So, any strategy for improving parcel must start with recognizing its actual volume.
Scalable Parcel Shipping Depends on Data
Best Practices to Achieve and Maintain Scalable Parcel Logistics
- Move to dimensional pricing models.
- Eliminate waste in packaging.
- Differentiate online versus in-store fulfillment parcel packaging processes.
- Integrate your TMS with brick-and-mortar POS systems, notes Digital Commerce 360.
- Improve compliance and transparency regarding regulations and public perception.