The Impact of Shipping Automation on Your Bottom Line: Why You Can’t Afford Not to Automate

Being successful in the logistics industry means taking advantage of the benefits that new technology provides. The demand from consumers for faster delivery times has made it crucial for companies to find the most efficient shipping methods, while still being cost-effective. Shipping companies can only meet customer demand by utilizing automation technology. The benefits of automation technology in the shipping industry improve scheduling, workflows, and process for better visibility throughout the supply chain.

Those companies that adopt automation strategies will see higher profit margins and increased productivity. While every company has different needs, automation can result in cost savings of 40%-75% with payback ranging from several months to years, meaning that company can’t afford not to automate.

Enhanced Shipping Automation for Your Company

Shipping automation is the process of integrating software, technology and infrastructure to improve shipping operations. Enhanced automation involves more specialized tasks. This can be used for fulfillment planning and shipping functions to remove manual processes. The goal of shipping automation is to optimize processes by removing the need for labor to perform repetitive tasks like checking carrier availability. The end result is greater efficiency throughout the process, which improves margins.

Benefits of Shipping Automation

The advantages of shipping automation can be seen as follows:

Automated Processes: Machine learning takes historic data and helps predict what will happen. Process automation makes it easier to detect problems before they occur so changes and adjustments can be made.

Route Optimization: Route management requires automation for a seamless delivery. Automated route planning helps to maximize the efficiency of the shipping process so that deliveries are made on-time, every time.

Advanced Analytics: Analytics can be used to extract information from a variety of sources. This means that decisions are based on facts that are backed by data. Unexpected changes can be dealt with because of analytics and visibility.

Improved Security: Automated processes that are backed by blockchain reduce the chance for security threats and breaches.

Better Customer Experience: One of the goals of shipping automation is to make it easier and more cost-effective to process and ship orders to customers. The better the process for shipping is, the better the experience will be for customers. Automated shipping systems allow for the maximum options for customers with the best shipping costs. The transparency offered by an automated process means that customers stay informed every step of the shipping process.

Reduction in Costs: Automation in shipping enables a company to achieve significant savings in shipping, labor, and fulfillment. Automated shipping solutions can improve the packaging process to achieve the lowest cost, allowing employees to work on more productive tasks.

Case in Point: How Much Impact on the Bottom Line

Recently, Verizeal worked with Acer America Corporation to help them save more than $180,000 annually. With more than 400,000 packages shipped per year, Acer was challenged to get packages out on time, provide proper routing and tracking, process the paperwork for multiple carriers, and process U.S. customs requirement paperwork. The Verizeal system was able to provide Acer with a single centralized web-based solution that has the ability to track every package as well as process certification services with FedEx International.

This equated to significant savings in efficiencies in the shipping process from the warehouse to the import/export departments. The cost savings among shipping and labor costs are estimated at more than $180,000 each year. Alan J. Wang, Senior Director of IT at Acer America Corporation said, “As Acer grows, Verizeal has been very effective to our business objectives, changes, and goals. Verizeal software is scalable and customizable and its tech support has been able to accommodate our needs quickly and effectively.”

Case in Point: Elevating Performance to Impact the Bottom Line

Verizeal also worked with World Emblem, an international apparel manufacturer to increase their on-time performance. Verizeal was able to help World Emblem achieve a 99% on-time shipping record, while at the same time saving valuable time on each shipment and boosting customer service. The lack of automation in their process was causing World Emblem to miss some of its key performance indicators. Verizeal’s expertise in shipping and import/export compliance enabled the automation of processes and the use of digital documentation saved time and resources. By integrating Verizeal with Microsoft Business Central 365, World Emblem was able to increase visibility and fulfill orders faster, amounting to over four days a month of saved time.

Automate Your Shipping Processes with Verizeal

The potential for automation is to optimize the shipping industry through reduced cost, faster deliveries via more optimal routes, better forecasts, and less risk. Companies that incorporate automation into their daily process have been able to streamline operations and save money in costs and improved growth and efficiency. Verizeal provides the most control over the shipping process.

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