Identifying Opportunities for Cost Savings: How Your Company Can Optimize Shipping Data
As global trade and shipping continue to expand, leveraging shipping data analytics has become increasingly important for companies looking to optimize their logistics operations. By analyzing shipping data, companies can identify patterns and opportunities for cost savings, such as finding the most efficient routes and reducing transit times.
One key area where analytics can assist is in spend optimization. For example, an electronics retailer was able to save $1 million on an $8 million total spend by switching from air shipments to ground. Similarly, an industrial manufacturer saved $750k in collect and 3rd party carrier chargebacks per year by using analytics services. By analyzing shipping data, companies can identify these kinds of cost-saving opportunities.
Analytics can also help companies with transportation metrics reporting, which can help them aggregate their entire global spend to find cost-saving opportunities. An apparel company, for example, managed to obtain a 25% RFP contract savings by utilizing this service. Furthermore, analytics can enhance the customer experience for businesses, as illustrated by a gaming third-party logistics company that doubled its shipper/client base and experienced a 30% growth in organic orders.
Proactive tracking is another area where analytics can provide valuable assistance. By actively calling or emailing customers, TV online retailers were able to reduce returns by 15%. And a global media giant uses small package rating tools daily, which promotes improved shipping decision-making within its workforce.
Lastly, full audit suites can assist companies in catching errors before they turn into expensive mistakes. For instance, in one scenario, an early identification of a carrier rate loading error led to a $250k reimbursement and appreciation from the account representative.
In summary, shipping data analytics provides a range of opportunities for companies to optimize their logistics operations, including spend optimization, transportation metrics reporting, proactive tracking, and complete audit suites. By leveraging these tools, companies can identify patterns and opportunities for cost savings, make data-driven decisions, and improve their overall logistics operations. For more information contact the ShipMatrix team.
