Why Is It Important to Compare Shipping Options? Author: tylerg
January 31, 2013

Shipping comparison is one of the most important ways that you can save money on your logistics needs, but that does not mean it is easy to do an enterprise-wide shipping cost comparison. When you compare shipping costs, it is important to be methodical and ensure that you are taking all the pertinent factors into account. That being the case, you might wonder if the investment of time and effort is really worth what you stand to gain.

The answer is an unequivocal yes: Shipping comparison is crucial, and not just because of the immediate cost savings involved. There are several other reasons why you should compare shipping costs on a regular basis. Here’s what you stand to gain from shipping cost comparison:

A Stronger Bargaining Position With Carriers

If carriers are left to believe that they have all your business, they will often take advantage of the situation. Keeping carriers and other vendors honest means keeping them on their toes, and that in turn means challenging the terms of your relationship on a fairly regular basis. Carrying out proper comparisons means you can demonstrate where other vendors offer a better bargain. This is especially important if you have a smaller enterprise that is at a disadvantage in terms of the volume of transactions that it carries out.

A Stronger Regional and International Profile

Not every vendor is equally adept in every market. While the conditions for logistics have become highly standardized in the United States, what happens when you need to expand your business to the rest of North America and beyond? Many carriers will rely on the mistaken belief that your established business relationship, and the convenience it represents, will trump your need or ability to find savings elsewhere. Managing more relationships can be a challenge, but the higher performance levels you can gain outside your home territory may make it worthwhile.

A Stronger Budget Outlook Long-Term

Savings aren’t the only reason why you should regularly carry out an evaluation of your business practices, but it is obviously very important. Logistics is one of the only areas of your business where it becomes possible to save money on every transaction. As your portfolio of daily transactions grows and grows, you claim bigger and bigger benefits from all of the cost-related initiatives that you carry out. Because of the geometric effect this can have, it is a good idea to institute a process for cost comparisons as soon as possible.

Unless you have an on-site team of supply chain and logistics experts, it can be difficult to ensure that you can really optimize all the details involved in your shipping costs. Source Consulting provides the expertise you need to capture savings now and for years into the future without the investment in business hours that would be required otherwise. Plus, you can be certain that our experts -- many of whom were top figures in respected national carriers -- will uncover avenues of savings that internal teams frequently cannot.

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