Parting may be sweet sorrow, in interpersonal relationships, according to the Bard, but in business it can be what saves your company. Vendor management best practices place a great deal of focus on how to manage and optimize the existing relationships your supply chain depends on, but they may fall short on guidance when it comes to enough is enough and it is time to break things off with an underperforming vendor.
Severing business relationships is never easy, but much like a dead tree branch must occasionally be pruned to ensure the tree stays healthy, knowing when to call it quits with troublesome vendors is a skill worth cultivating.
Any company with a D2C ecommerce model is well aware of the increasing challenges of managing fulfillment, in particular, freight costs during the fourth quarter. Consumer shipping expectations continue to rise driven by the fulfillment benchmark being set by Amazon, Walmart, and other large D2C companies. Consumers are being trained to expect shorter shipping times with low, or no, shipping costs. Further increasing the complexity of managing fourth quarter fulfillment is the increasingly compressed online holiday shopping season driven by the expectation of 1 to 2-day shipping. In this article the focus will be on strategies to manage fourth quarter freight costs during this critical period while meeting your customer’s high expectations. In particular, we will focus on the key drivers impacting your shipping costs which includes, staffing, packaging, dunnage, freight negations, and communication.
Moving your product from point A to point B is rarely a A-to-B process. As customers happily dive into their shipments, little thought goes to the intricate network behind the scenes that made it happen, but those same shipping solutions are likely a major concern for you. One of the most challenging aspects of shipment is the dual selection of mode and carrier. While it's tempting to lean on a basic freight quote to keep things moving along, you'd be doing yourself a disservice. Basic freight quotes are full of holes, and may not be meeting your fulfillment center's needs in a meaningful, consistent way.
There are three things you need to consider that are often missed.