The order fulfilment industry is not shy of using the latest technology. The evidence of this fact is the barcode scanners, chat bots, robotics, and more. The supply chain is making use of technology to optimize the processes. Shipping, one of the most expensive components in order fulfilment, leverages automation by using an automated shipping system. Here are some reasons why automation of shipping is significant.
What is Automation in Shipping?
Automation in shipping uses automation systems to replace wholly or partially some processes and procedures of commercial shipping. That means, when new orders are placed, automation takes care of choosing items from the warehouse or inventory, package them and deliver it to the customers.
Automating the shipping process has many benefits, but most importantly, it gives you a big lead in terms of speed, compared to your competitors. The manual tasks involved are eliminated or reduced drastically so that orders get fulfilled automatically. Depending on the automation system you chose, it can replace picking, checking and shipping. The system can be as basic as adding infrastructure, like conveyor belts to advanced technologies like robotics.
1. Reduction in Costs
An automated shipping system can reduce labour costs significantly. For example, one system can replace up to 20 checking and parcel stations and these resources can be moved to perform tasks that add more value. For start-ups and small businesses, an automated system means fewer resource requirements, translating to reduced labour costs.
Shipping costs are one of the significant expenses in fulfilment and automating shipping significantly reduces it. That is because it attracts fewer surcharges on dimensional weight through Cartonization. In addition, it is software that uses optimal packaging size before shipping orders. It also helps in making the correct calculations for fulfilling the dimensional weight test.
2. Boosts Order Accuracy
By automating the shipping, the order accuracy rate is greatly improved. It automatically checks the weight and dimension of the carton against the order. If it does not fulfil the criteria, it will be sent for reprocessing. This means there are fewer chances of errors and returns.
3. Improves Efficiency
Order fulfilment involves many tasks, and these can be time-consuming and labour-intensive. Having an automated system in place makes handling these tasks more seamless and efficient as there is less manual intervention. Moreover, when the processes are seamless and streamlined, the number of orders fulfilled increases, which ultimately translates to better profits.
4. Better Rates
The automation of shipping means that the system automatically chooses the shipping rate that is the lowest. The system shops for the best cost based on the location, shipping requirements, and other factors. That means you get the lowest shipping cost for your order shipments.
Most shipping automation systems are customizable as they are designed to be modular. The operations can be semi-automated or fully automated based on the requirements and specific needs, allowing customizations. The components (software and hardware) are designed to be modular to be expanded when the business scales to new heights. Also, the automation process gels into the current system so that there is minimal downtime.
If your organization is looking to boost customer satisfaction, reduce operation costs and make long-term savings, then connect with Storzb to include shipping automation on their ecommerce platform.