Articles & Whitepapers

In today’s world of constantly looking for ways to improve the company’s bottom line, many Operations are being asked to reduce costs or better yet, increase productivity and efficiency and lower cost at the same time. Here are some ideas and practices that we have identified from inventory assessments and warehouse assessments that we have conducted.

For most multichannel merchants, transportation of goods is the highest operational expense. Inbound freight costs for domestically sourced product typically range from 2%-4% of gross sales, while for imported product, inbound freight costs 6% to 12% of gross sales. Outbound transportation costs typically average 6% to 8% of net sales.

Some things never change. After the Holiday season, there is invariably a movement to determine how costs can be reduced for the upcoming year. Every aspect of the operation should and does come under review. But, not every area of the business is given equal scrutiny. The following information discusses one of those areas that traditionally do not receive the attention they deserve.