Example 4 Runaway Shipping Costs

Shipping Costs Eating Into Profits

  • Unmonitored and Unplanned Shipping Eats Into Margin
  • Begin Monitoring Trends in Shipping to Prevent Losing Money
  • Systems Can Spot Geographies Where Shipping Cost and Margin Trends are Deteriorating
  • Begin By Examining Factors in Customer Orders and Compare Customer Characteristics that Influence Shipping Margins Focusing On Losses

Common Inputs from Any ERP and Shipping System

Data includes fields of cost and charges along with the carrier, zone, zip code, and so on…

Shipping Data

Formula Runs to Generate Predictive Models

Shipping flow

Processing Output Generates Thousands to Millions of Predicted Values

Shipping Reports

 

Output includes future predictions on variables sent to data files and/or displayed in reporting and dashboards

 

Examine Factors that Influence Losing Money on Shipping

Look at current shipping and trends to identify how different factors contribute to losing money on shipping

Shipping Factors

Benefits to Controlled Shipping Costs

Shipping Benefits

  1. Negotiation tools for use with Shipping Vendors
  2. Reduce expenses
  3. Management tools and validation for enforcing shipping policies

 

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