Every year, millions of people vow to make changes that’ll improve their lives. Maybe it’s learning a new language, being better with their budget or managing their time better.
One of the most common resolutions is to lose weight and get in shape. “I want to be a healthier version of myself by this time next year.”
Maybe the goal is to look better, feel better, complete a 5k or a half marathon. Whatever your motivation, it’s a solid goal.
You may need a scale, measuring tape, smart watch, fitness app, or all of the above. But the one key component is the ability to measure and quantify the impact of the changes you make to reach your goals.
So what does losing weight or setting personal goals have anything to do with shipping costs?
As it turns out. A lot.
Each year, thousands of companies make decisions to lower their shipping costs in order to maximize margins, reduce shopping cart abandonment, create a better customer experience or simply minimize the impact of constantly rising shipping expenses.
Quick side note - if you aren’t aware of annual carrier rate increases, check out our Annual Carrier General Price Increase guide. Click here or the image below to view/download. If you ship with UPS and FedEx, your rates go up each year. By a lot.
Okay, back to the point.
Unfortunately, the carriers do not provide metrics to visually compare where you were and where you are based on the changes you made. How do you know if the changes you make ACTUALLY make a difference? Are you improving in the areas you want to? How are your decisions costing or saving you?
For example, let’s say you negotiated a new contract. Great. And you think that you’ve done a good job in securing the discounts that’ll help your business save money. Even better. How do you gauge the success of your contract negotiations post implementation?
Maybe you’ve made some operational changes that you think might save you some money. How do you know if the tweaks in your shipping habits, like using new types of packaging, changing the carriers you’re contracted with, or shipping packages from a new distribution center location are making a difference? How will you know the true impact on your shipping spend, transit times, or cost of goods sold?
You won’t. Unless you have the right tools in place to track your changes.
Thousands of shippers use Lojistic’s technology for free to make data driven decisions to reduce their shipping costs. But they also use Lojistic to gauge the success of their shipping changes by using “Compare Mode.”
Check out this Compare Mode tutorial below.
Compare Mode is a super powerful feature that can be used in any of the cost savings analytics in your Lojistic account.
Do you feel like you’re paying way more in surcharges and fees this year compared to last year? Use Compare Mode.
Did your service level usage change from the previous month? Were there more mistakes on your invoices this quarter or last quarter?
Compare Mode empowers shippers to review past peak season cost inefficiencies, implement better strategies moving forward and visually analyze their effect. The applications for Compare Mode are unlimited. Learn from your past to make game-changing decisions for the future.
Anything that you do within your shipping operations can be compared and analyzed with compare mode. Using different carriers? Many businesses rely on UPS and FedEx to fulfill their shipping needs. If you're using both, you can easily see which one is performing better for you. Operating multiple companies or brands? Compare them.
Quit staring at excel sheets. Stop wondering how changes are going to play out. You don’t have to hope and pray for the best. Compare Mode removes all mystery. Know exactly how the changes you’ve made impact your shipping goals.
Stop guessing and start comparing. With Lojsitic. Create your free Lojistic account.
Author
Bryan Van Suchtelen
Bryan Van Suchtelen
Corporate Director of Rate Services
With more than 34 years of parcel experience, Bryan Van Suchtelen is the Corporate Director of Rate Services at Lojistic, one of the nation’s top logistics and transportation cost management companies.
Prior to joining Lojistic in 2015, Bryan enjoyed a 26-year career with UPS where his roles included Pricing, Field Sales and Director-level Sales Management of some of UPS’s largest customers.
At Lojistic, Bryan leverages his wealth of experience/expertise to identify and execute supply chain cost management solutions for parcel shippers of all sizes. Bryan has helped his customers reduce their shipping spend by tens of millions of dollars.