4-2.12 Controlling Shipping Costs

The emphasis for controlling costs should focus on compliance with the Transportation Solution Determination Process and provide more notice and lead time to the TMSP for transportation moves so that better planning can occur. Proper planning and coordination can avoid most instances of expedited or air shipments. The Perform Value Chain Mapping and Analysis topic of the Prepare Project task of USPS Supplying Practices Process Step 2: Evaluate Sources aids in obtaining these cost reduction measures. Examples of how the item manager can use some factors to improve savings include:

• Streamlining shipping and receiving — opportunities for streamlining inbound processes include:
• Managing dock operations of incoming goods, as well as mandating delivery appointments, which reduces dock-to-stock time.
• Reducing documentation and copies of documentation and generalizing all shipping forms.
• Processing orders by a certain time of the day to take advantage of shipping rates for multiple orders or same day service.
• Working closely with suppliers — working more closely with suppliers can result in more accurate forecasts and provide opportunities to assess supply chain processes for improvement.
• Teaming up with the TMSP and other departments — working with clients to forecast when materials or products will be needed may lead to transportation or freight cost savings.
• Leveraging technology — IT can be leveraged to automate manual processes (e.g., order and inventory tracking, interfacing with the TMSP).