Shipping management forms an important part of the distribution process of companies that supply goods to near and far off locations. It is a vital process for organizations that wish to ship their consignment of goods from one place to another over large distances on a regular basis. Shipping is generally concerned with the transfer of goods by the sea route. There may be special ships designated by the company for carrying their consignment while some companies may even rent space on a vessel for transferring a limited quantity of goods. These days, the term shipping is sometimes also used by organizations that deliver goods via the land route.
From the business point of view, shipping management is a detailed and step by step process that consists of mainly the following steps:
- First of all, the market for a certain product needs to be determined. The company needs to assess whether a particular region or area can consume certain good types or not. When the region where the product has to be shipped to has been determined, the process of shipping management starts.
- This process also consists of deciding the prices at which the goods are going to be transported to the consumers or retail stores. Sometimes, the entire cost of transport including the land routes from retail locations to ultimate consumers is borne by the company itself while at other times, this cost may be split.
- Several possible options are considered by the company regarding the kind of vessels and shipping companies to use or whether to hire its own ship or invest in one. This decision is taken after weighing all the pros and cons of each company.
- There are comprehensive checks at each stage of shipping. The entire stock is counted thoroughly on departure as well as on arrival. This is the responsibility of the team assigned with the task of shipping management. They can be held accountable for any discrepancies.
- A certain percentage of the goods are also estimated as losses that may occur as pilferage. Pilferage means when the goods are destroyed or spoiled due to certain reasons.
McLane Logistics Technology provides Shipping Management Software solutions for businesses to effectively manage their shipping functions.
