Keeping a logistics budget on plan in an e-commerce world can be a complicated task. It requires on demand forecasting and real-time accounting for changes in fulfillment related expenses and customer expectations. The recent change in dimensional weight charges is a prime example of a circumstance that directly impacts budgeting and operations, especially for e-commerce companies.
With dimensional weight influencing the cost of shipping, considerations will need to be made for secondary shipping elements as well, specifically protective packaging.
While it may be instinctual to seek cost saving opportunities in materials, this can have less than ideal results. Much in the same way that having an amateur handy man work on your house, or opting for the motor oil that’s cheapest for your car; these cost saving decisions can end up being more expensive in the long run.
A recent article from Modern Material Handling explains how damaged deliveries will negatively impact your bottom line and the customer experience when packaging is compromised in an effort to save a few dollars a shipment.