Consider you’re a retailer with a dilemma: you have a product line of low-end sneakers with razor-thin margins. Your major buyer is located 600 miles from your factory. You happen to discover the shipping costs for these sneakers is twice what you’re charging buyers who are 1200 miles away. You quickly decide to raise your customer’s price without notice or explanation. They get upset and go somewhere else.
Good decision or bad on your part? Based upon the information you had, I guess it was good. But, you made a quick decision without all the facts. It was incomplete, even for Reader’s Digest.
To run your business, you need decision-makers. To run your business effectively, you need informed decision-makers.
(Learn to unlock the secrets in your shipping budget by reading this article.)
If you had monitoring transportation analytics, I bet you’d have a more informed decision. It’s critical to you and your business to make confident, informed decisions based upon fact and past performance. Without good information, you’re setting yourself up for a potential fall.
Here are 3 reasons you desperately need a next generation monitoring transportation analytics for your shipping department:
In our example, if you are to go back and add transportation analytics from the outset, then your conclusions would be vastly different. The analytics would’ve revealed you’re excessive cost for dimensional weight corrections. Now you could’ve identified and fixed the real problem quickly (instead of making assumptions) and explained the issue to your buyer. They’d appreciate hearing the facts and allow you an increase to offset your marginal loss. Thus, you’ve averted a PR nightmare and turned a customer into a long time partner.
“One month does not a trend make.” It’s easy to vacillate on your decisions based upon one good or one bad month. Back to our example, the dimensional weight corrections affected you significantly in the first six months of the year but have subsided in the past two. Without a good transportation analytics suite providing trend analysis for your LTL, Parcel, TL, Ocean, or Air shipping, you’d only see the aggregate cost increase and assume it’s a relevant matter for today. With trend analysis, you’d see the improvements and begin to ask why; then you’d discover your shipping department changed boxes sizes to mitigate the added dimensional costs.
A growing number of companies are seeking out transportation analytics. Your business can’t afford an under-capitalized logistics strategy. Your ability to source a provider is more affordable than ever, so take advantage of it. Companies base their buying decisions on two factors: costs and benefits. “How many resources will it take, and what is my return?” With the right provider, you’ll spend an hour or less pulling together your shipping account information and, in a day’s time, have visibility of your historical data. It’s that simple. And as you can imagine, transportation analytics ensure you stay ahead of your competition.
Don’t allow yourself to become a victim of poor or misinformed decisions. Save your customers.