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Shipping and mailing are two of those “invisible” cost centers in many businesses—you pay for postage, labels, carriers, packaging, and handling but may not have full visibility into how much you’re spending, where the inefficiencies lie, or whether your service levels justify the cost.
Without that view, it’s nearly impossible to control costs, take advantage of savings opportunities, or make data-driven decisions to improve your business.
Stamps.com explores how businesses and professional services organizations using data analysis in logistics and predictive analytics to gain shipping and mailing insights can uncover patterns they’d otherwise miss.
By using shipping and mailing data and analytics, you can:
- See where your money goes: What are you spending per carrier, service level, destination, or package type?
- Spot inefficiencies: Are you using an expensive expedited service when a cheaper ground option would suffice or shipping small parcels with a large-parcel service?
- Compare carriers and services: Which carrier is the most cost-effective or ships the fastest?
- Forecast and optimize: Are you allocating funds effectively or choosing the best fulfillment locations?
How to use reporting tools and shipping data analytics to save money
Having the tools is one thing; using them effectively is another. Here are the top ways to leverage reports to reduce spending.
Establish a baseline of your spend and performance
Pull your current shipping and mailing data for the last two years via your shipping platform and review the spend. Look at the total spend and breakdown (by carrier, service level, and destination zones) and the total number of shipments and shipments by service level and package size/weight.
Segment and analyze by dimension
Use filters to break up the data by carrier, service type, and cost codes, which let you track expenses and bill postage spend back to specific clients, projects, or departments.
Look for patterns in the data, such as services where the cost is disproportionately high relative to volume or weight, package sizes where you might be overpaying, and carriers with below-average transit performance.
Identify data-driven opportunities to optimize
Based on your analysis, formulate cost-saving opportunities such as service-level right-sizing. If many items are shipped via expedited service but the delivery time doesn’t require it, consider a slower but less expensive service. You can also consider shifting carriers or transferring more volume to a more affordable provider if one offers a lower rate for a specific zone or weight.
Monitor the impact of your changes and optimize continuously
With reporting in place that helps you make sense of your metrics, keep a close eye on how your actions are impacting spend and performance. Create recurring reports for a conv