July 5th, 2012
Problems that are costing you money and how to fix them
Your business in the mail and parcel industry is hard enough when trying to keep up with the latest technologies and changes in the marketplace. Sometimes it can be hard to find time to look at your operation to find inefficiencies so they can be fixed. If you find the time, however, your bottom line is going to move in a positive direction. Here are two common problem areas where you can try to increase your profits:
You’ve done everything you can to get your parcel sent out and delivered on time, only to find yourself looking down at it because it came back undeliverable. Maybe the address was off, maybe the carrier was at fault, or maybe it just wasn’t meant to be. The end result remains the same, however. You’re going to be out money one way or another, either directly or through taking the time to fix the problem.
First, consider the tools you have in place to help make sure everything goes smoothly. Are you using the Coding Accuracy Support System to make sure the address entry is correct and deliverable? Are you checking databases to find out what addresses are proven to be deliverable? If not, you might as well be giving away money. These basic failsafes need to be in place before you can even consider fixing the problem. If you’re already doing the above, then it’s time to start tracking your entire process. Once you have enough data you can track the undeliverables and find common factors that cause the shipping to go awry. Fix the problems and you’ll have more money in your pocket.
If you take a hard look at your operation, it’s likely you’re spending too much money somewhere. Maybe you’re paying too much for supplies, or your labor costs are out of sync with your customer flow. In some cases, your shipping costs could be inflated because of an inaccurate picture of how your customers use your service or what they ship. It’s easy to look at things and think, “This is how it’s always been so it must be right,” but that’s not going to get you anywhere.
Make the time to undertake a widespread analysis of your business. Look at the factors mentioned above (and anything else you spend money on) and see where areas could be improved. If you don’t have any opportunities for optimization then you are an amazing businessperson and it’s time to open a few more locations. In reality, many in the industry have several small areas that need to be optimized that can add up to big bucks.
Take a close, honest look at your business and you’ll be surprised at the money you can find.
Author’s bio: Ryan Franklin is a guest blogger and expert on shipping in all its forms. He knows what’s what when it comes to yacht transport and parcel shipping, and everything in between.