How Shipping Options Can Affect Retailers’ ROI

How do you think about ROI? If you’re like most retailers, ROI comes into play when you think about product pricing, how soon you can sell, and, therefore, how soon you can get product here from your manufacturers overseas. In other words, your ROI is linked to how smoothly your supply chain runs.

But there’s another dimension beyond revenue: cost.

Imagine a situation in which a retailer receives 125 containers a year, shipped from Taiwan to Phoenix. One day, five containers arrive at the warehouse, but it’s equipped to receive only one container per day. That means the other four containers must be stored elsewhere, incurring demurrage and other charges. Each of those daily fees, which can add up to many thousands of dollars, eats away at profit—and the retailer’s ROI.

“The logistics industry is a lot like the travel industry,” says Michael Van Hagen, Laufer’s Vice President of Sales and Marketing. “Lots of problems can create challenges for suppliers to get their shipments where they need to be on time, such as customs exams, strikes, and manufacturing delays. Once a shipment sails, there’s not much you can do to change the ETA, and mistakes can cost tens of thousands of dollars.”

In the example, the situation could have been avoided altogether if the freight forwarder had considered the limitations of the warehouse and created a corresponding shipping plan. This is what Laufer Group International does every day. They begin by analyzing receiving-end requirements, then creating shipping plans that align with those requirements. “If we look at that example,” Van Hagen says, “containers would have been shipped on different days, not all at once, staggering delivery so that one container would arrive per day.”

Beginning at the receiving end and working backward, Laufer leverages decades of experience and expertise to vet important details at the point of origin, making sure that each customer has shipping options that don’t chip away at profit and ROI.

Manufacturers protect their ROI by shipping as much as they can. By providing shipping options that align with receiving-end capabilities, Laufer protects yours.

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