At Component Supply, we pour time and effort into affirming our role as a resource from the perspective of our product offering: comprehensiveness, no/low minimum order quantity, and competitive pricing. However, what often gets overlooked is our effort to understand shipping processes and how they affect our customers’ pricing.
This week, we are dedicating three blog posts to shipping processes because costs associated with shipping is one of our customers’ biggest frustrations. Thanks to Amazon Prime and Walmart, we all tend to get a little antsy when shipping isn’t free. But, FedEx and UPS cannot do their job for free any more than we can. Furthermore, this is industry – business to business, and the expectations are different. But, because we do work closely with our shipping carriers and are constantly looking to make improvements that will impact the pricing and security of delivery, we want to pass along some advice:
1) Purchase for multiple departments, projects, or production lines at once. This may not always work with limitations on how purchase orders are placed and need to be received, but if you can bundle multiple orders into one shipment, you can often greatly reduce shipping costs.
2) Purchase larger volumes less often. Much of the product we supply does not take up much space. If your demand can justify purchasing in larger quantities but fewer times a year, then take advantage of it. We work with numerous customers to lower their shipping costs this way and, in some cases, we can even lower the product costs themselves with discounts for larger volumes.
3) Order more items of similar size or structure at once. If you are buying coils of plastic tubing and also long lengths of straightened wire, you can’t take advantage of efficient, consolidated shipments because those items ship in very different sizes and types of boxes to arrive securely. However, if you can plan further in advance and order larger volumes of similar products at once then more efficient packaging, and therefore lower shipping costs, are available.
Check back tomorrow for three more tips and how to take advantage of capabilities that can reduce your production resources once you’ve brought material in house.