Shipping process optimization: How e-commerce companies are realizing the full potential

Anyone working in e-commerce usually sees the greatest optimization potential in the online store. From SEO optimization for more visibility to performance optimization to increase usability to conversion optimization to generate more buyers, only the measures around the website and the associated store are usually seen. This is certainly not a wrong approach, but overall it is a bit too short-sighted.

Particularly in the case of the shipping process, which rarely receives the attention it deserves, appropriate optimization ultimately brings with it a whole range of benefits.

Optimized shipping processes are not only important for customer satisfaction. They can also lead to significant cost savings, improve performance and service, and contribute significantly to operational decision-making when it comes to choosing the best possible carrier for its shipments and destination regions or general shipping requirements.

In this article, we would like to show you what successful shipping process optimization can look like. Ultimately, e-commerce is also about gaining a competitive edge over the competition. And it is precisely here that the optimization of shipping processes is decidedly underestimated.

Optimization of shipping logistics through multi-carrier shipping system

Nowadays, customers not only want the fastest possible delivery time, but also the best service. However, if you are a frequent shipper and only work with one carrier, you will quickly notice that there is a lot of catching up to do for some delivery types or in certain geographical areas. Not to mention the price-performance ratio, which varies from carrier to carrier.

This is precisely where the use of a multi-carrier shipping system is an essential step towards optimizing shipping logistics. A multi-carrier shipping system, such as HEIDLER’s HVS32, designs the entire process holistically and creates a degree of flexibility that helps to find the best shipping option based on the situation.

The most important advantages of the HVS32 include:

• Over 300 carriers centrally integrated in one software
• Extensive ERP / WMS interfaces & integrations
• Maximum scalability with highest possible functionality
• Reliable planning for for every conceivable growth scenario

In addition, the HVS32 can be supplemented with numerous HVS32 extension modules in terms of functionality. The most important plug-ins, which also contribute to the optimization of the shipping process, are described below. An overview of the HVS32 multi-carrier shipping system can be found in the linked blog post.

Shipping process optimization through address verification in the shipping process

If no address check takes place in the shipping process, the package goes out to exactly the address that the customer enters in the store when ordering. If the recipient makes a mistake in this process, the best case scenario is merely a delay in the delivery chain. In the worst case, however, customer dissatisfaction due to increased delivery time is compounded by costs for manual post-processing by the carrier.

Most carriers work on the basis of so-called route or routing databases, against which the recipient address is checked during the shipping process. If the address cannot be assigned due to a spelling error or transposed numbers, no shipping label can be printed and the recipient address must be corrected manually.

In such cases, DHL Paket, for example, is entitled to charge the shipper 49 cents per parcel if no routing code can be found for the specified recipient address in the routing data determination. Other carriers also charge for this service. This can quickly add up with high shipping volumes and numerous manual re-entries.

In order to prevent such problems, not to increase costs by slight input errors and to keep customer satisfaction high by timely deliveries, HEIDLER has developed the plugin AdressCheck. By the way, you can find more information about this in the associated blog post: Address check in the shipping process.

More transparency through status data import

Those who rely on the HVS32 shipping system from HEIDLER for shipping process optimization can use the Status Data Manager extension to download the status data of a wide variety of carriers directly from the carrier servers – possibly for a fee, provided this has been agreed between the shipper and the carrier.

If the status data is imported, the last imported status can be queried in the shipping system at any time using the so-called information function in the corresponding package entry. This status can in turn be reported back in a time-controlled manner via the existing interface to the host system (ERP/LVS). This allows the package status to be tracked directly in the order in the merchandise management or warehouse management system.

If customers then have queries about the status of the order, information can be provided easily. By the way, if you have the necessary know-how, you can also store the data read out on the parcel status directly in your web store, where customers can then view the status themselves using the login function. However, please note that this plugin from HEIDLER only provides the information and the automated integration of the data in a webshop is not a function.

Of course, you can also use the data in other ways. An extensive integrated reporting (BI) function in the optional web interface “SEM Web” can support with practical filters and statistics functions, for example, to analyze the previous cooperation with carriers, and possibly be a decision support for future negotiations or even the switch to other carriers.

A detailed look at the topic of status data and retrieval of the package status outside of the tracking page can be read in the linked blog post.

Significant cost savings through freight cost management

Last but not least, we would like to recommend the very valuable functions of the HEIDLER Freight Cost Management System (HFMS). It provides you with an optimal overview of your freight cost situation and supports you in all freight billing processes. Finally, the functions available in the HFMS for tariffing and freight cost invoice checking relentlessly uncover incorrect invoices and thus create absolute transparency.

The Shipment Policy Manager (SPM) extension is also designed to significantly reduce costs. This is not simply a matter of identifying the carrier with the lowest price. In fact, the SPM tool does much more and can always automatically identify the best carrier service for any shipment using a fully customizable set of rules. This way, you get maximum performance at the best price.

All information about the HFMS (Heidler Freight Cost Management System) is available in the linked article.

Summary

In today’s blog post, we showed you how much mostly underestimated optimization potential lies dormant in shipping processes. In many respects, it is worthwhile to make adjustments to these levers. From significant cost savings and greater transparency to a measurable increase in customer satisfaction, shipping optimization is an essential piece of the puzzle for business success – especially in e-commerce.

Would you like to learn more about the HVS32 shipping system or would you like individual advice on the basic module and the various expansion modules? Then we would be pleased to answer your questions in a personal conversation! Just scroll a bit further and send us a short message via our contact form! We look forward to hearing from you!