Solutions
Ecommerce logistics can be expensive, challenging and time consuming.
So we’ve designed solutions to make it simple, affordable, and a valuable competitive advantage. Our solutions focus on margin improvement, customer value, and risk mitigation.
Actual results based on recent projects include:
- 5-20% shipping and fulfillment spend savings.
- 98%+ on-time and in-full delivery rate.
- 23% fewer logistics-related customer service tickets.
CARRIER MANAGEMENT
Sourcing, negotiation, and onboarding
The logistics marketplace can be a confusing space to navigate. And unfortunately, most providers like it that way because it gives them leverage in negotiations and client relationships. Whether your goal is cost reduction, service level improvement, market expansion, or a combination our shipper-first approach is tailored to your needs and designed to shift the advantage in your favor.
01. Preparation
Before jumping into it, we will work with your team to better understand your goals and review your operating model and data to design a strategy that maximizes value for both you and your customer, not just the carriers.
02. Outreach
Based on the strategy developed in the preparation stage, we’ll begin reaching out to carriers, providing them with the information they need to ensure a quick and competitive proposal. Usually, there will be some additional communications, meetings, and follow-ups that we will handle on your behalf.
03. Evaluation
We’ll simplify and compare the proposals and guide you through the best options. We analyze the landed cost, technology capabilities, operations, onboarding flow, and other important considerations when building a shortlist of carriers that is best for your business.
04. Carrier negotiation and selection
Based on the shortlist, we’ll design and coordinate a negotiation game plan to maximize value through proven strategies and additional due diligence, such as visits and reference checks where appropriate, before finalizing a new agreement.
05. Onboarding and continued support
It’s now time to start reaping the rewards.
We will help ensure things start well by project managing the onboarding from start to launch while also auditing post-launch invoices and service levels to ensure expectations are met.
Carrier contract analysis
If you’ve ever seen a FedEx or UPS contract, you’ll know why this is a stand-alone solution. FX and UPS contracts are overly complicated to the full benefit of the carrier. We’ll review your contract and highlight opportunities for improvement based on market trends, benchmarks, and frameworks. You’ll receive a comprehensive report highlighting and explaining the major cost drivers as well as actionable insights and battle-proven negotiation tactics to secure more competitive terms so that you can reduce costs and improve service.
Cost benchmarking
Competitive supplier costs are crucial for companies striving to stay ahead of the competition. We understand the challenges of navigating the cryptic and complex logistics marketplace and have developed an innovative benchmarking solution to address this issue. Our benchmarking solution leverages data, industry expertise, and up-to-date market intel to provide comprehensive insights into your supplier costs. This process starts with understanding and visualizing your true baseline costs wholistically as well as by different variables such as product, delivery method, and even by surcharge. Our solution empowers shippers to compare their costs against up-to-date market rates as well as highlight and identify areas for improvement and optimization. By doing so, shippers are able to leverage this information to reduce costs and improve efficiency.
NETWORK DESIGN AND OPTIMIZATION
Center of gravity analysis
If you are looking for a quick and efficient network design option, we are able to run a center of gravity analysis which will identify the best locations for your fulfillment centers based on historical order data.
Zone skip / direct inject design and implementation
Zone skipping is a consolidation strategy where the retailer directly manages the middle mile from their fulfillment center to their carrier’s final mile sort center. Zone skipping has the potential to significantly reduce shipping costs and transit time by lowering the average zone, unlocking regional carriers, and bypassing the first half of the traditional hub and spoke model. However, there’s a delicate balance of cost, speed, and reliability to consider. We’ll work with you and your team to identify and quantify direct inject opportunities as well as implement and monitor the project.
We’ve designed, implemented, and managed direct inject programs for some of the largest US ecommerce shippers. We leverage our experience and network to ensure you run and manage a successful, market-leading, direct inject program that improves margin, service levels, and transit time.
01. Analysis
We begin by gaining a thorough understanding of your business and business goals. We work closely with you to understand your historical volume, forecasted volume, desired delivery experience, and outcome.
02. Design
Based on our analysis, we will design a zone skip strategy unique to your shipment profile, goals, and requirements. We’ll clearly show you the financial opportunity and landed cost while calling out any potential risks and operational changes required.
03. Supplier outreach
We’ll help you communicate and coordinate the zone skip program with your parcel carrier and injection points to ensure a successful start. This is a critical step that is often underappreciated.
In addition, any zone skip program will require middle-mile transportation. We’ll use our experience and network to find and negotiate competitive and reliable agreements that meet financial and service level expectations.
04. Operational readiness
We’ll work closely with your team to communicate and monitor what’s needed to support the zone skip program. For example, this might mean palletizing parcels, labelling pallets, or adjusting to a new pick-up time.
05. Implementation
Once we have alignment and operational readiness between the parcel carriers, injection points, middle-mile carriers, and your own operations team we’ll coordinate a launch date. During and after launch, we’ll oversee the initial operations while training your team to manage the program going forward.
OTHER SOLUTIONS
Invoice auditing and claims recovery
Up to 4% of FedEx and UPS costs are errors. Shippingwise continuously monitors invoices for errors and opportunities to dispute charges, submit claims, and recover credits automatically. We frequently uncover savings and credits related to…
- Service-level failure refunds
- Invoice correction fees
- Late payment fees
- Weight errors
- Duplicate invoices
- Third-party and collect billing errors
- Rating errors
- Accessorial and fuel surcharges
Logistics function audit
B2C logistics is often seen as the last part of the supply chain and for that reason under-appreciated. But the delivery experience is frequently cited as the top reason a customer will place an order and choose to shop with an online retailer a second time. The delivery experience should be positive and memorable, so we’ve developed an end-to-end framework to identify opportunities that reduce costs and improve conversions and revenue. The audit is modular so it can be completed as an E2E analysis or customized to focus on your specific needs.
01. Current network evaluation
We’ll summarize major cost drivers and opportunities to realize more value out of your logistics network, supplier contracts and partnerships.
02. Alternative delivery methods
Based on your historical data, operating model, and business goals we’ll identify alternative logistics partners and delivery options as well as recommend more efficient delivery network designs. Some examples include distribution center location optimization and direct inject/zone jumping opportunities based on your actual and forecasted demand.
03. Customer experience
By reviewing KPIs, tracking visibility, returns options, packaging, peak season plans, and other pre-and post-purchase experiences we identify opportunities that improve the E2E customer delivery experience, retention, and revenue.
04. Technology and reporting
Logistics has many moving parts and technology is critical to orchestrating and deciphering it all. We’ll review your current reporting and logistics-related tech stack to identify customer-centric opportunities that improve performance and deliver savings.
05. Results and continued support
At the end of the audit and analysis, you will receive an easy-to-understand yet comprehensive report highlighting valuable insights and actional next steps to improve margin and meet your business goals.
Reporting and intelligence
You can’t improve what you don’t measure. We integrate seamlessly with your business to automate valuable ecommerce logistics insights that improve margins, revenue, performance, and customer value. We look at over 20 critical KPIs and benchmarks to ensure you have the intelligence to be more competitive and efficient. Simply put, we help you make better business decisions.
01. Set up data feed
Once your data is connected, our team of analysts will clean, normalize, and integrate your data into our system. This will allow you to start receiving our parcel intelligence reports, automatically.
02. Receive weekly or monthly reports
Based on over 20 critical KPIs, you’ll receive valuable insights and market benchmarks that improve margins, revenue, performance, and customer value.
03. Get strategic advice and support from experts
In addition to receiving valuable reports, you have the option to receive monthly advice from an ecommerce logistics expert to realize and maximize your opportunities.
Shipping strategy sessions
Gain insights from experienced ecommerce logistics experts, enabling and inspiring you to optimize and elevate your supply chain and processes. Our sessions give your business a competitive edge by identifying potential bottlenecks, streamlining operations, reducing costs and improving margins, and uncovering new ways to acquire, delight, and retain customers.