Wholesale shipping supplies, such as bubble wrap, shipping paper, and corrugated boxes are among the top three highest overhead costs in fulfillment operations. If you run a fulfillment business, or perform your own fulfillment in-house, following these tips for reducing costs will help you reduce your shipping costs, and find the best quality wholesale shipping supplies.
Here is Part 1 of tips for reducing shipping costs:
1. Blanket Purchase Orders
While developing relationships with suppliers, most operations will buy small volumes of shipping supplies at advertised prices. As the need for volume increases, you will then want to contact your supplier’s sales department to negotiate a standard, blanket order with discounts for volume that you can submit monthly. Not only does this lower your cost for shipping materials, it also streamlines your materials ordering for better inventory management.
2. Carefully Weigh The ROI On Volume Discounts
While the unit cost of shipping supplies decreases as the volume of supplies ordered increases, ordering extra quantity requires an investment in extra units, as well as maintaining an inventory of supplies. In order for volume discounts to work, extra savings due to the discount must be divided by the additional investment. This quotient is then compared to the rate of return you can get from other investments.
3. Set Blanket Orders Subject To Batch Releases
Even if investing in extra units of shipping supplies yields a low ROI, you may be able to get around this by placing blanket orders subject to batch releases. This means that rather than ordering monthly, you only order new inventory of shipping supplies, when you need it. This results in a more efficient budget for shipping materials, and lower cost of maintaining inventory. It negates the cost of your investment for volume discounts by spreading it out over the maximum time window.
Stay tuned for more tips to help you lower your shipping costs in Part 2!










