The fact is that transportation makes up about 60% of the supply chain dollar. A lot of shippers blame the high cost of transportation on the carriers, but a lot of carriers agree, if things were packaged differently costs would not be a concern. Of course, you always want to start with trusted transportation on your side but there are things that you can do before your products are ever loaded that can greatly reduce risk and cut costs.
Making the most out of the space is what will deliver the best value in transportation, and this falls on the shipper. A lot of the problems stem from the idea that “this is the way it has always been done” but there are better ways to do things that can help cut costs and bolster your relationship with carriers.
How Technology in Logistics will Shape Shipping in 2019
You Do Not Need to Over Package
In the name of protection many businesses make the same mistake. They over package their products, with the idea that more is more but the fact is if you start out with the right packaging less can be much more when it comes to protection and cost effectiveness.
There are a several reasons why overpackaging is one of the biggest manufacturing errors:
- It costs you more for transportation
- It generates huge amounts of unnecessary waste for the retailer
- It increases overall costs
While protection is key to ensure your products arrive in the best possible condition, it is not necessary to use layers of packaging.
Keeping Costs Down
Transportation costs can be curtailed with the right packaging. Fuller loads with less packaging materials can take a bite out of costs. A lot of freight depends on strapping, wrapping and bracing to prevent damage during shipping, but there might be a better solution that can do away with the other dunnage and make shipping easier for both your operation and the transportation company.
Wooden pallets outfitted with wooden pallet collars can help to keep products secure during transportation without all the extra weight and fuss. The beauty of this setup is that adding collars to build walls on a pallet is adjustable, they can be used for small loads and large loads and deliver the same level of protection.
With this type of system, you can save on both added packaging material and stop paying to ship empty space.
No More Waste
When you are overpacking your shipments with additional packaging materials you are essentially paying to transport waste. The retailer will unpack your pallet and discard all the packaging materials. The pallet collars are an excellent solution for decreasing the amount of waste that your brand generates.
Retailers love pallet collared pallets because the products can be displayed right in the pallet and the collars can be removed for easy access as the inventory gets lower. Carriers love the setup because it makes transportation safer and easier.
Flexible Freight Shipping
Short orders or orders that are not necessarily a full pallet size can easily be accommodated by pallet collars. They are stacked to the desired height and of course can be unstacked to reduce the height or depth of the pallet box. It is an ingenious solution that allows you more freedom in shipping and that your transportation company will appreciate.
Less Risk Equals More Profit
Fully protecting your products during transportation by using pallets combined with pallet collars can greatly reduce the risk of:
- Spillage during transportation
- Damages from bumps
- Unauthorized entry into your palletized goods
When you add pallet collars to your palletized goods you are creating a sturdy wooden barrier against things like spillage, damage from other freight and unauthorized entry.
Many supply chains rely on shrink wrapping to manage palletized goods, but shrink-wrapping processes does not protect from the potential dangers during transportation, it also makes it difficult for transportation companies to figure out ways to protect your goods during transportation.
Reducing Load Time Performance
Building a beneficial relationship with your carrier starts by your company doing its part to keep load times down. Oddly, enough your packaging can greatly affect your load times. With pallets and collars, one person can assemble the shipping container without tools and without equipment. You do not have to worry about delays because of equipment issues.
Fast load times are appreciated by carriers and can result in less overall expense and more consistent pick up times.
Optimizing the Cube
Again, pallet collars added to your pallets is the solution for optimizing pallet space. With collars in place you can take advantage of vertical shipping space instead of increasing pallet footprints and taking up more space. Shipping larger loads and taking up less space is possible with pallet collars.
Consult with Logistic Experts Early On
One of the biggest “misses” that occur in the supply chain is not consulting with logistics experts about packaging and how to optimize it for transportation purposes. With the right input and a few tweaks to your packaging the savings will be measurable not only with transportation but across the board.
Outsource Your Transportation Needs
If you are a small business, hiring a transportation staff may not be the best option. Outsourcing your transportation department needs can ensure that you get the highly trained professionals that can make suggestions, provide direction and manage the department without the cost of full-time employees.
When you outsource transportation, you are also outsourcing the risk that you would have by establishing your own department in house.
You can reign in the costs of transportation with the right packaging setup and the right experienced professionals.