Cloud Parcel Shipping: Crossing the Supply Chain Gap

Gaps in the supply chain can create costly, inefficient bottlenecks. In this QAD Precision Report, we share why cloud logistics software is the bridge to upgrading your global shipping operations amid disruption.

One word comes to mind for the current landscape of global shipping and logistics operations: disruption. With a record number of ships floating off the coast of US ports; a post-Brexit, post-COVID UK causing fuel, labor and supply chain shortages; and a manufacturing shortage of raw materials due to pent-up demand, it’s no secret the global trade and transportation network is in uncharted territory.

Nearly all major industries continue to report fragile logistics operations due to the aftershocks of COVID-19, while central bank executives in the US and UK warn it could get worse before it gets better. Even before the pandemic, however, it would be difficult to find a company that could claim to have no gaps in their shipping processes, but now those gaps appear to be widening.

At the same time, consumer demand is still at an all-time high. E-commerce and online storefronts have set a new standard, promising one- to two-day delivery, coupled with free or reduced shipping costs. This has pushed carriers to their limits. 

To cross this gap, parcel shippers should strongly consider cloud-managed logistics software. Shipping operations powered by the cloud have proven to increase flexibility, boost efficiency and mitigate inevitable disruptions.

Add Flexibility

Possibly the greatest advantage to cloud-based logistics software is increased flexibility. 

With the cloud, chief logistics officers, shipping managers, and key personnel can use the same critical data to ensure cohesive and dependable operations. This data can also be accessed by any team member — in a secure database — to allow users to respond quickly and keep business on track no matter what the future brings. 

Role-based administration can define what data is available to which team members as required. For example, information about packages in-transit can be shared across logistics staff and your customer support teams, no matter where they are based. 

You can add even greater flexibility if your cloud-based logistics solution offers access to a multi carrier network. This allows your business to select the lowest possible rate while still hitting critical deadlines. 

Automated decision-making simplifies this process even more. Parcels will be automatically routed to the most appropriate carrier depending on your business rules, or the characteristics of the parcel. This eases economic pressures and is much less time-consuming — saving shippers valuable time and capital.

A cloud-based multi carrier solution also makes it easier to rapidly respond to market changes — such as serving customers in new geographies or getting a new distribution center up and running. 

Increase Throughput

Time is money, particularly when it comes to shipping. The faster a package can be properly labeled and processed for shipment, the more parcels can be sent per day. This directly equates to more revenue per package, especially as shipping volumes grow. 

It takes on average 2 to 5 seconds for most parcel shipping solutions to generate a carrier compliant shipping label. On the surface, this seems pretty quick, but in a high volume shipping environment, this time lag can become a significant problem. If you process 1,000 parcels a day and it takes 4 seconds per label, you’ll need around 66 minutes to generate that day’s labels. But if you were processing 10,000 parcels a day, 4 seconds per label equates to over 11 hours.

Using a cloud-based shipping solution, it is possible to generate labels in under a second. By slashing label generation time and increasing throughput, cloud parcel shipping solutions prevent bottlenecks, while drastically increasing the efficiency and speed of operations for high volume shippers.

Stay Prepared

While cloud solutions can drastically improve operations, the truth is that no service or software can solve all problems overnight, particularly for parcel shippers. However, supply chain disruptions will always exist, and cloud-based logistics platforms will help prepare them for the next big challenge. These solutions provide shippers with the tools they need to quickly address bottlenecks, accurately send packages to their customers, and effectively react to disruptions in real-time.

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Further Reading

THE BENEFITS OF MOVING GLOBAL TRADE AND TRANSPORTATION OPERATIONS TO THE CLOUD

FIVE BENEFITS OF MULTI CARRIER SHIPPING SOFTWARE

UNDERSTANDING CONSOLIDATED SHIPMENTS (Infographic)