Imagine your online sales are booming! Orders are flying in, and you’re stoked. But then, the headaches start. Shipping costs feel like they’re on a runaway train, packages get delayed or seem to vanish into the air, and stressed-out customers blow up your inbox.
The truth is getting your products into customers’ hands quickly and affordably can be a minefield. But it doesn’t have to be. Through shipment management eCommerce logistics can be streamlined, save money, and keep your customers coming back for more.
This guide isn’t just about fancy terms and technical stuff (though we’ll cover the basics). It’s about giving you the tools to take control of your shipping. We’ll break down everything you need to know. Keep reading.
Shipment Management Basics: Definition and Core Stages
Shipment management is the process of planning, organising, and keeping tabs on everything that happens to your products from the moment they leave your warehouse (or store!) until they land safely on your customer’s doorstep. It’s like having a master control room for all your shipping operations.
Think about the fast, affordable shipping that makes customers happy. Happy customers come back and tell their friends. But when shipping is slow, expensive, or stuff gets lost, that’s a recipe for bad reviews and lost sales. Shipment management helps you steer clear of those disasters.
The Building Blocks: A Step-by-Step Look
Planning and Organisation
This is where you figure out the smartest way to get your products from point A to point B. It is about what shipping services to use, how to pack things safely, supply chain management, and any forms you might need (especially for international shipments!).
Packaging & Labeling
Boring but important! The right packaging protects your products from damage, and clear labels make sure they get to the right place. Nobody likes receiving a smashed-up item or a package that’s wandered off to another state.
Carrier Selection
Think of this as choosing your delivery team. Do you need speed (like overnight air)? The cheapest option? Carriers that specialise in certain types of supply chain management? Each has pros and cons, depending on your specific needs. Businesses often use the NimbusPost courier recommendation engine to guide them in finding the best carrier.
Tracking & Monitoring
Where’s my stuff? Shipment tracking lets you monitor your packages and gives your customers peace of mind. If anything goes wrong, you can catch it early and try to fix it.
Last-Mile Delivery
This is the final stretch – getting the package directly to the customer’s door. It sounds simple but can be crazy complicated, especially in busy cities. We’ve covered ways to make it as smooth as possible in this guide on how a 3PL works with last-mile delivery for the best order fulfillment experience.
Overcoming Common Shipping Challenges
1. Runaway Shipping Costs
If you feel like a little piece of your profit disappears every time you ship something, there are ways to fight back. Consolidated shipping is one way to combine several smaller orders into one bigger shipment. Often, it’s cheaper to send one large box instead of multiple small ones. Also, bulky packaging means higher shipping costs. Find ways to pack your goods securely while keeping the package size as small as possible.
Don’t just accept the first price a carrier gives you. Shop around and try negotiating or try shipping rate calculators to get the right price, especially if you ship a decent volume. You might be surprised by what you can get.
2. The Dreaded Late Delivery
We all know the sinking feeling when a package doesn’t arrive on time. Annoyed customers, lost sales, it’s no fun. To be proactive and prevent delays, avoid last-minute rushes. Give yourself and your team enough lead time to pack and ship orders. Build relationships with your carriers. Good communication can help you spot potential delays early and make adjustments. And don’t promise lightning-fast delivery if you can’t guarantee it. Set accurate expectations from the start, and customers will be more forgiving if minor delays happen.
3. Damaged Goods
Nothing’s worse than a customer receiving a broken product (except maybe having to deal with the whole return and replacement process).
To minimise damage, invest in protective packaging. Don’t skimp on bubble wrap, foam peanuts, and sturdy boxes. It’s worth a little extra to prevent the heartbreak of damaged goods. Consider shipping insurance, especially for expensive items. It’ll give you peace of mind if something does go wrong.
4. The Need for Real-time Tracking
Not knowing where your packages are builds stress – both for you and your customers. Real-time tracking lets you spot problems quickly (like a package stuck at a sorting center) so you can take action. Order tracking links give customers peace of mind. They’ll be less likely to bombard you with “Where’s my order?” emails. It’s a win-win.
5. The Returns Nightmare
Let’s be honest: Returns are a part of doing business, especially eCommerce. But they don’t have to be a disaster. Communicate your policy clearly to customers upfront. Make it as easy as possible for customers to initiate returns. Think about how you’ll efficiently get those returned items back to your warehouse.
Technology in Shipment Management
Warehouse Management Systems (WMS)
A Warehouse inventory Management System is like the central control center of your warehouse, keeping track of everything – where your inventory is located, how much stock you have, and what needs to be shipped and when. It helps you organise your warehouse efficiently and ensures orders get picked, packed, and fulfilled smoothly.
Transportation Management Systems (TMS)
A Transportation Management System works as your shipping manager. It helps you compare rates from different carriers, choose the most cost-effective option—multi-model or intermodal transportation—and book shipments directly. It can also handle tasks like scheduling pickups and tracking shipments in real time.
Route Optimisation Software
If you were stuck in traffic delays last season, This software helps you plan the most efficient delivery routes for your carriers, considering factors like distance, traffic patterns, and multiple stops. It can save you significant time and money on fuel costs.
Shipping Management Platforms (SMPs)
These are all-in-one solutions that combine the features of WMS, TMS, and sometimes even route optimisation. They offer a centralised hub for managing your entire freight transportation process – from order fulfillment to tracking and delivery. It’s like having a supply chain management system ensuring all aspects of shipping work together seamlessly.
Going Above and Beyond in Shipment Management
Customs Clearance Made Less Painful
Customs paperwork is nobody’s idea of fun. But getting it wrong leads to serious trouble like delayed shipments, and unexpected fees, and your goods might get stuck in the worst case. Luckily, you don’t have to tackle this alone. Freight forwarders like NimbusPost specialise in handling those complicated customs forms. There are also online government databases where you can look up requirements for specific countries. If international shipping is regular for you, it might be worth investing in a customs broker. They’ll make sure your paperwork is always in order.
Shipping with the Environment in Mind
Customers increasingly care about a company’s environmental footprint; your shipping practices are part of the picture. Eco-conscious shoppers will appreciate knowing you have a supply chain model that considers your shipping’s environmental impact. This can even give you an edge over competitors.
Of course, your top priority is still getting products delivered safely. Some carriers emphasize sustainability more than others – fuel-efficient vehicles, carbon offset programs, etc.- and this can be a great selling point if it aligns with your brand.
Communication is Key
Keeping customers in the loop builds trust and lessens frantic “Where’s my order?” emails. Don’t make customers chase you down for tracking information. Instead, set up automatic email updates at key points in the journey (“Your order has shipped!”, “Out for delivery today!”).
Customise your tracking pages with your logo and colours through NimbusPost branded tracking pages. Even those little details make it feel more professional. If shipping issues arise, make it easy for customers to get help. A clearly visible help email or a contact form on your website will reduce those panicked calls.
Conclusion
Don’t let all this valuable information just sit there. Critically examine your current shipping process. Where are the pain points? Where could improvements save you money or make customers happier? Even small changes can have a big impact over time.
Shipping management is an evolving field. By now, we hope you’re convinced that shipment management plays a vital role in finding the best shipping model for your business. Whether you’re just starting out or looking to streamline an existing operation, there’s always room to improve.
FAQs
What are the different types of shipping management?
Here’s a breakdown of the different types of shipping management:
Inbound Shipping Management: The process of getting products, raw materials, or components to your warehouse or business for storage, production, or direct fulfillment of incoming orders.
Outbound Shipping Management: Getting finished goods out of your warehouse or fulfillment center and safely delivered to end customers.
Reverse Logistics Management: Managing the flow of products being returned by customers due to dissatisfaction, defects, or exchanges.
Small Parcel Shipping Management: The handling of individual, lightweight packages. Think about your typical online shopping purchases.
Freight Shipping Management: Transporting large quantities of goods, often palletised, using truckloads (LTL or FTL), train, ship, or even air freight for international orders.
What is logistics and shipping management?
Logistics is the overarching system of planning, organising, and managing the flow of goods from their origin to their final destination.
Shipping management is a key part of logistics. It specifically focuses on the process of physically moving those goods.
What are the 3 methods of shipping?
The three main methods of shipping are:
Ground Shipping: Goods are transported by truck. This is usually the most affordable option but can be slower than other methods.
Air Shipping: Goods are transported by plane. This is the fastest option but is also usually the most expensive.
Ocean Shipping: Goods are transported by cargo ship. A cost-effective way to move large quantities over long distances, but also the slowest shipping method.
What is a shipping strategy?
A shipping strategy is a plan for how a business will get its products to customers efficiently and cost-effectively. It includes decisions about:
- Carriers: Which shipping companies to use.
- Speed: How fast to offer shipping options.
- Packaging: How to protect products during transit
- Cost: How to balance shipping costs with customer expectations
- Technology: What software to use to streamline shipping processes
What are the types of Shipping Strategies?
Common Shipping Strategies
Free Shipping: Covering all or part of shipping costs to attract customers. Can be offered at all times or with spending thresholds.
Flat Rate Shipping: A single shipping price regardless of order size or destination, offering simplicity for customers.
Real-Time Carrier Rates: Directly displays shipping rates from carriers (like FedEx or UPS), providing accurate costs but potentially higher prices for customers.
Expedited Shipping: Prioritises faster delivery for customers willing to pay a premium.
What is the best way to ship the product to the new market?
Ocean shipping is the best way to ship products to the new market.
