Today, in part two of our series on how to easily improve the accuracy of your shipping cost estimates for an improved freight cost recovery outcome, we look at two methodologies for automating the calculation of your billed shipping weight. (Here’s part one).
How the Charge Weight improves the accuracy of Shipping Costs Estimates
Carriers normally calculate shipping costs on the dead weight or the volumetric (cubic) weight, whichever the greater. This is commonly known as the billed or charge weight. The challenge for high volume shippers is to calculate the charge weight and therefore an accurate shipping cost estimate.
To do this, shippers must measure and declare the dimensions and the dead weight of each package before shipping. While some shippers leave it to their carrier to measure and weigh the packages with their automated conveyor systems, this is not considered best practice because it means the shipper does not have an accurate estimate for:
- Recovering their freight cost.
- Least cost carrier selection (carrier routing).
- Reconciling the carrier invoices with your declared charge weight, thereby relying 100% on your carrier to invoice you fairly and accurately.
- Restricting your ability to use this shipping data for any meaningful management reporting and decision making.
Best practice means that shippers declare accurate package weight and dimensions, but this can be time consuming and slow the productivity of your shipping process.
Using standard box sizes to improve Shipping Costs Estimates
One relatively simple method that our Transport Management Software (TMS) system: 2Ship, can quickly declare this data is by using standard box sizes. These standard boxes can come with a printed barcode on them that allows an operator to scan the barcode of the box and automatically record the box dimensions in the correct fields within 2Ship. Speeding up by automation the process of recording the dimensions to accurately price the shipping cost of the order.
Using Digital Scales to improve Shipping Costs Estimates
2Ship also has some compatible digital scales that can connect to 2Ship and allow the shipping operator to simply place the package on the digital scale and record the weight of the package. By using these simple, but efficient tools within 2Ship, shippers can quickly and easily record accurate weight, dimensions and therefore shipping costs.
Implementing Dimensioners to improve Shipping Costs Estimates
Of course, for very high-volume shippers automated systems can handle greater volume in less time. Systems such as countertop Dimensioners, or even conveyors with built in laser guided Dimensioners and Digital Scales, that weigh and measure the boxes automatically as they flow along the conveyor, recording the box weight and dimensions automatically to 2Ship for high speed shipping cost calculation and automatic least cost carrier selection.
Conclusion
As you can see, 2Ship has multiple tools for a high level of control when calculating shipping cost estimates, selecting the best option for the carrier selection and record the most accurate shipping cost so that you recover your freight charges easily and with certainty.
If you’d like to learn more about how 2Ship can automate your shipping processes and can better control of your freight, reach out to us and we will be pleased to assist you.