How To Develop a Logistics Strategy With Help From a 3PL

Are you completely satisfied with all aspects of your business shipping? It's a question worth asking. Because even the most successful companies can find themselves outgrowing their current shipping strategies.

As your business grows and shipping volumes increase — especially if freight shipping becomes a larger portion of your logistics mix — the need for a well-defined and optimized logistics strategy becomes crucial. If you haven't yet perfected your shipping strategies, now is the time to develop a plan that will keep you ahead of the competition.

But what exactly is a shipping strategy, and why should you focus on it? Let's explore how building a tailored shipping plan can boost your supply chain
optimization and deliver significant savings and efficiency.

What makes up a good shipping strategy?

A shipping and logistics strategy is a comprehensive plan that looks at every aspect of your company's shipping needs. It includes reviewing your shipment volumes, carrier selection and budgetary considerations, and helps you set clear objectives for achieving your logistics goals.

A shipping strategy should set guidelines for both your inbound and outbound supply chain, assessing the most cost-effective freight modes, shipping optimization opportunities and the best routes to take.

The benefits of a well-defined strategy are numerous and can:

• Lead to cost reductions
• Minimize delays
• Improve on-time delivery rates
• Reduce shipping damage
• Decrease redundancies and inefficiencies

Most importantly, it helps you make smarter decisions regarding your parcel
shipping, LTL freight and FTL shipping operations, while improving your overall supply chain optimization.

Questions To Ask and Key Considerations for Shipping Strategies

To fully optimize your logistics operations and ensure your business is achieving shipping efficiency, it's crucial to examine every detail of your current processes. Here are some important considerations that should be part of your shipping optimization efforts:

Packaging materials and procedures

How well are you utilizing packaging materials for your parcel and freight
shipping? Consider the impact of material usage, space optimization within pallets and minimizing damage during transit.

Inventory storage

Are your storage capacities aligned with the needs of your business? Assessing how well your storage and warehousing strategy serves your shipping efficiency is a critical part of the overall plan.

Carriers and service levels

Are carriers meeting your needs, or are there alternatives that might provide better service? Take a close look at the on-time rates and service reliability of your current carrier partners.

Shipping speeds and modes

Could your shipping optimization efforts benefit from more tailored solutions? Evaluate whether the current mix of parcel shipping, LTL freight, FTL shipping and other freight modes is optimal for your business and if your current partners are providing what you need.

Logistics technology

Is the technology you're currently using to manage shipping and logistics providing the right insights and solutions? Consider a transportation management system (TMS) or other tech solutions to help streamline and automate your operations.

Data analytics and performance dashboards

Are you using data-driven insights to optimize your shipping strategy? Performance dashboards and analytics tools can provide real-time visibility into your logistics operations, enabling better decision-making and more efficient resource allocation.

Reverse logistics

How well are you handling returns? Often overlooked, reverse logistics is a vital part of your shipping strategy, affecting both customer satisfaction and costs.

Shipment insurance

Is your business covered adequately during shipping? Understanding when and how to utilize freight and parcel shipment insurance is a key consideration in risk management.

8 Ways a 3PL Helps Develop and Implement Your Logistics Strategy

With so many moving parts, developing a robust shipping strategy may seem daunting. This is where a third-party logistics (3PL) provider comes in. Partnering with a 3PL strategy expert can simplify this process and help you develop a plan tailored to your business needs. Here's a look at the steps involved in crafting a winning shipping strategy with help from a 3PL:

1. Assess current operations: The first step is a comprehensive review of your existing shipping processes. A 3PL will work closely with your business to analyze your shipping volumes, frequency, destinations, on-time delivery rates and costs. This audit identifies areas for improvement and potential cost savings.
2. Understand pain points: Your 3PL will consult with your team to pinpoint any challenges, such as shipping inefficiency, damage during shipping or high shipping costs. Understanding these pain points is crucial for targeting areas of improvement.
3. Define business needs: Your 3PL will work with you to establish a clear picture of your shipping requirements — this includes everything from parcel shipping to LTL and FTL
   shipping. They'll factor in customer expectations, growth plans and delivery timelines to shape your
   strategy.
4. Analyze spending: Cost analysis is essential for any shipping strategy. A 3PL will help assess your current shipping expenditures, considering everything from fuel surcharges to handling fees, and compare options to identify more cost-effective shipping solutions.
5. Negotiate carrier contracts: Working with a 3PL that has established relationships with trusted parcel and freight carriers ensures that you'll get the best rates and service agreements for your shipping needs. Their experience in negotiating with carriers can help secure favorable terms, reducing costs across the board.
6. Create an implementation plan: A detailed implementation plan will outline the steps necessary to transition to the new shipping strategy. This includes timelines, roles, responsibilities and contingency plans to ensure a smooth transition.
7. Implement technology solutions: Modern logistics technology is essential for shipping optimization. Your 3PL may recommend a transportation management system (TMS) or other technology to streamline the shipping process, improve tracking and provide real-time data to help you make informed decisions. Be sure to look for a TMS designed for both parcel and freight shipping.
8. Provide ongoing support: After the strategy is implemented, a 3PL should continue to monitor performance, gather feedback and make adjustments as needed. This ongoing support ensures that your shipping strategy remains effective and continues to evolve as your business grows.

The Path To Optimizing Your Shipping Strategy

Developing a comprehensive shipping strategy with the help of a 3PL can have a profound impact on your business shipping efficiency, customer satisfaction and bottom line. The detailed process of assessment, planning and continuous improvement will help streamline your operations and reduce shipping costs.

With the right mix of parcel shipping, LTL freight, FTL shipping and other freight types, your company will be better positioned to meet customer expectations by optimizing your supply chain. Whether you're looking to lower costs, improve delivery speeds or reduce damaged goods, a solid shipping strategy is key to staying competitive.

Worldwide Express Can Help You Create a Logistics Strategy and Supply Chain Optimization Plan

Worldwide Express has more than 30 years of success in the logistics industry and helps thousands of shippers of all sizes move products with great efficiency. We are also part of WWEX Group, alongside GlobalTranz and Unishippers. Combined, these companies make up one of the largest and most diverse 3PLs in the industry, providing shippers with top solutions that help them succeed — whether shipping parcel or freight.

Ready to take the first step toward transforming your shipping strategy? Reach out today to request a custom consultation with a Worldwide Express shipping expert.