Being one of the key activities in the supply chain, transportation costs are among the most significant factors that define the net margin of B2B firms in the furniture industry. Maintaining these costs as low as possible is one of the levers through which one can sustain profits and therefore the competitiveness of a firm. At the core of this article, the author presents various strategies that can be adopted when trying to cut costs on the shipping of furniture screws.
Optimize Packaging
Thus, packaging is one of the techniques that can be used to minimize the cost of transporting the products. This therefore implies that through adequate packaging, many charges that come with the process of shipping shall be avoided by the companies. Choosing materials that are as tough as possible while at the same time being as lightweight as possible will go a long way in reducing package weight while at the same time providing adequate protection. Consequently, customized packaging specifications also ensure that space is effectively employed, hence reducing the number of deliveries.
Bulk Shipping
It is also advantageous to the client when they order furniture screws in bulk, this is because it means there will be minimal charges when shipping the screws. In this mode of transportation the total amount of consignment that is transported is not very high and therefore the total cost is low. There is also the added benefit of being able to obtain the products from the machine screw manufacturers at favorable prices for bulk, including the screws. The positioning of the large shipments with the other hardware parts and materials like custom drawer slides also improves the shipment.
Negotiate with Carriers
One is able to negotiate for better rates with the carriers that are preferred for the shipping. Another advantage is the continuous improvement of the price and services in the long run if the carriers are locked in as partners. It is important that companies should from time to time review their shipping prices and learn from other shipping companies if they are being overcharged.
Utilize Shipping Software
There are software options that can be purchased to help manage the shipping and cut the costs. These tools help the firms in the cost analysis of services and in observing the shipment status and the challenges associated with the proper management of supply chains. Shipping software also has a feature for searching the best and the cheapest way of shipping and the carriers for certain conditions.
Consolidate Shipments
This includes combining many consignments in one large consignment because this has been noted to reduce the transport cost. This approach also minimizes the generation of the single packages and at the same time it is effective in the utilization of the available space in the shipping vehicles. When the supply chain is in harmony with suppliers, for example the machine screw producers, then it can order the shipment of the products in a single instance thus cutting down on the cash required for this process.
Consequently, reductions in the cost of shipping furniture screws need packaging, shipping in bulk, bargaining with the carriers, using the shipping software, and consolidating orders. Hence applying these approaches in B2B relationships, furniture industry firms will be in a position to reduce cost and consequently enhance their total organizational profit and competitiveness in the market.
