5 Ways Distribution Software Makes Your Shipping More Efficient

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Whether you have throughput centers, distribution centers, or warehouses, efficient shipping is the key to your business success.  According to the former president of Gross & Associates, Don Derewecki, in an article in Inbound Logistics, “speed through the distribution center is critical” if a distributor is to remain competitive in this business environment.

Unfortunately, there are a lot of barriers to efficient shipping, including wasteful practices like:

  • Using cartons that are too large for the products, which waste materials, labor and freight costs
  • Overprotected products that waste packaging materials and generate excessive trash for customers
  • Expensive equipment that isn’t used frequently or at all
  • Defaulting to using company trucks or routes instead of checking to see if outside carriers would be more cost effective
  • Failing to recognize opportunities to pass freight costs on to customers

However, the right distribution software solutions can streamline your shipping processes and make them more efficient.  Here are five examples:

  1. Create and use a decision matrix within your system to help you select the best carton size or mailing bag size for individual shipments.  Likewise, a system decision matrix can be used to help you make choices for your inventory, shipping methods and carriers.
  2. Routing software is an essential, core element of any distribution software solution and its value should not be overlooked.  Continue to optimize your use of your routing solution to gain efficiency.
  3. Based on variables like customer segments, volume and order size, you can use freight cost decision matrices in your system to identify if the shipping cost must be absorbed or if some or all the cost can be passed onto the customer.
  4. Distribution software integrates all of your business data, from inventories to orders to customer information, bringing everything into one system and reducing the risk of errors.
  5. Improve your forecasting and planning with a system that enables you to forecast purchases and stock requirements, predict customer buying habits, and track trends such as historical sales, manufacturer forecasts and seasonal factors.

By streamlining your shipping process through distribution software, you can better control your stock levels, improve your delivery times and maximize your business.

If you are looking for ways that technology can help your shipping processes to be more efficient, request a complimentary Distribution Strategy Assessment, today!

By Socius, an Ohio Distribution Solutions Provider

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