Strategies to Develop a Cost Reduction Plan for Your Small Business

Posted in Reduce Shipping Costs Info, Shipping Industry and tagged on

Business is, by nature, competitive. So many companies, vying for the same base of clients, attempt to carve a niche for themselves in their identified industry. Many times, multiple companies succeed in appealing to enough customers to surpass the threshold of success but in the end, the majority of those companies, though they identified a range of customers, end up closing their doors for lack of profitability. The difference between a successful business and one that fails is the ability to reduce the cost of overhead and keep it low. A major factor in most companies’ overhead are their shipment costs.

By developing a cost reduction plan, companies can save money to allocate elsewhere—whether that be to hire more employees or purchase more stock. Several quick strategies can help any business to begin the reduction in shipping costs. From tracking freight, to employing packing standards, every company can trim its shipment costs.

Few businesses are aware that they may be eligible for shipping refunds for late delivery. Most companies do not even track their shipments to monitor the arrival dates. When a package is posted to make its destination in two days but takes three or even four, the company that paid for shipment is guaranteed a refund price for service disruption. Of course, people who only ship the occasional package may not be aware of this, but both small and large companies that send dozens or even hundreds of parcels a day can receive significant refunds just by tracking their shipments.

The next best way to cut the cost of shipping, for a business, is to employ shipping-specific personnel. Not all companies are large enough to have a full time shipper, and in the case of small businesses, simply designating one person as the one in charge of readying packages is acceptable. The reason for having identified shippers though, is that such an employee will know the proper way to package and post deliveries. Every ounce that is left out of a box is money saved for the company. Overstuffed padding costs shippers thousands of dollars every year (often much more). By simply addressing two easy shipment standardizations as part of their cost reduction plan, most companies can save significant overhead costs leading to profitability in a competitive environment.

Are you sending a out bunch of FedEx or UPS shipments every month? Chances are your invoices contain refund opportunities. Let PackageFox help you save some money.

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