July 28, 2017
Given the geographic variables, mechanical requirements and general complexity of transportation, it’s probably not a surprise that it is the most expensive factor when fulfilling products. Transportation costs can be broken into a few different buckets, all of which drive up the overall price per order.
Manufacturing inbound transportation costs
Where you manufacture your product will impact your inbound transportation costs from manufacturer to fulfillment center as well as your general fulfillment strategy. For example, a company manufacturing and fulfilling orders in the northeastern United States will have a different strategy (and costs associated) than a company manufacturing in China, shipping via Air or Ocean Freight, importing into the Port of Long Beach, CA and line-hauling to the northeast.
When looking at international vs. domestic manufacturing, it is important to consider all the added transportation and customs cost for your product.
Value added transportation costs
With more and more consumers ordering online, offering appointment scheduling and in-home or light assembly upon delivery is becoming an increasingly common expectation, especially for large or complex shipments. This type of white glove delivery service can be complex to manage, and the costs add up quickly. Our First and Final Mile solutions are designed to proactively manage shipments to prevent wasted time on scheduling appointments, refusals and other complexities.
Added costs through packaging
Packaging is oftentimes overlooked when looking at pure transportation costs…but the excess space in a box may subject you to charges for dimensional weight vs. actual weight (if you aren’t sure what dimensional weight is read our blog here). There’s also overpack to consider — it’s needed to prevent any breakage or damage while in transit, but adds to packing costs.
Small parcel transportation providers
Small Parcel transportation costs vary based on the provider you use. Typically, providers are categorized by global/national carriers, regional carriers, postal consolidators and postal carriers.
With all of these different transportation-related factors, it’s easy to see how costs add up. However, you can avoid much of this hassle by working with an experienced partner who will help you navigate transportation options from start to finish. Learn more about our First Mile and Final Mile Transportation solutions and keep you costs under control.