What are the Powerful Functions of a Shipping System?

In today's fast-paced business environment, using a shipping system will optimize the shipping process and boost efficiency. The right system enables you to save time and resources in the shipping process while focusing on business growth.

Before understanding the functions that the system includes, it's essential to know the answers to the following questions:


What is a Shipping System?

A shipping system offers one or more solutions to improve compliance, reduce shipping costs, and become a valuable asset in the shipping process. These systems can help your business execute the entire shipping process, from calculating shipping charges to tracking the shipment to the customer's door.


Woman using functions of a shipping system


What are the Shipping Terms?

Shipping terms can vary from domestic to international shipments. While many shipping terms exist, the following are most common:

  • Terms of sale – Obligations that need to be fulfilled for items to be delivered to the buyer
  • FCA – A term that indicates the seller's obligation when goods are handed to shipping companies
  • FAS – Free alongside shipping
  • Bill of lading – A legal document that indicates the carrier received the goods
  • Collect on delivery – A term used when the transportation company collects the sales price on delivery
  • Freight forwarder – A combination of LTL and LCL shipments into truckload lots or a full container.

Dozens of additional terms also exist relating to shipping and the many steps in the process.


What are the Steps of Shipping?

Shipping can be complex and includes multiple steps, such as:

  • Request of goods
  • Shipping quote and cost calculation
  • Arrange shipment with the freight forwarder
  • Book freight
  • Freight goes from warehouse to a port or depot
  • Goods travel to the final destination, possibly requiring import processing
  • Goods in delivery to the buyer

There are quotes, shipping weight, cost calculations, documentation, compliance control, tracking, and so much more in the process. Your forms will need to be processed, labels printed, and possible tracking sent to the customer.


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What are the Shipping Charges?

Shipping charges are all costs associated with getting goods to their final destination. The final delivery factors in multiple charges, including:

How are Delivery Charges Calculated?

The variables that go into the delivery charges are:

  • Item size
  • Item weight
  • Delivery timeline
  • Transportation method
  • Fuel charges
  • Surcharges
  • Documentation fees
  • Port charges
  • Destination charges
  • Cargo insurance

Calculating shipping charges requires a complete understanding of the shipping process, the shipped goods, and the delivery to the final destination. Shipping systems allow for fast delivery charge quotes that are accurate and allow businesses to maintain profitability.


Why Do You Need Shipping Software?

Businesses require proper shipping management and software to keep operations moving fluidly. The shipping software that your team uses allows your business to operate faster and more efficiently while remaining compliant and offering the best customer service possible.

If your business isn't using shipping software, you're spending more on:

  • Unnecessary costs
  • Manual labor
  • Complex compliance
  • Customer service

If you want to remain competitive in your industry, you need shipping software to streamline the multiple steps in the shopping process.


Barcode scanning in warehouse for shipping system


What are the Different Types of Shipping Systems?

Shipping systems can be complex, and there are different types of systems to choose from. When you're deciding on a shipping system, consider the following types of systems and their benefits:

Multi-Carrier Shipping System

With a multi-carrier system, shippers can use one single system to select carriers and prepare any documents necessary. You'll be able to compare:

  • Carrier and freight rates
  • Shipping times
  • Arrival dates

Shipment Document Generation Software

Documentation generation increases efficiency and streamlines shipping by speeding up form creation, filing directly through export systems, and adhering to export regulations easier.

The right documentation software makes it easier to remain compliant and is an integral part of a shipping system.

Freight Management or Transportation Management System

Freight/transportation management systems help streamline supply chains, improve the shipping process and boost logistic efficiency. When physical movements of goods are optimized and executed, the day-to-day operations of transportation fleets are improved.

Multiple points in the distribution process include:

  • Distributors
  • Wholesalers
  • Retailers
  • Logistic companies
  • Manufacturers
  • Shippers

E-Commerce Shipping System

An e-commerce system enables companies to reduce costs and improve efficiency through improved inventory management systems. Organizations that ship both domestically and internationally can use these shipping systems.

The right system will offer data organization, cloud systems, and the ability to configure business rules.

Shipment Tracking Software

Shippers can use tracking software to track shipments at every point during transportation. Software is available for multiple forms of transport:

  • Air
  • Land
  • Sea

Shippers and exporters can use tracking software for all parts of the supply chain.

Shipping Label Software

Shippers can use labeling software to create and print shipping labels that can help identify shipments to:

  • Ensure proper handling
  • Conceal package information
  • Identify shipments
  • Ensure safety standards
  • Ensure compliance
  • Meet shipping regulations

Labeling software can be used on desktop devices and will become an integral part of the shipping process.


Your Next Steps with a Revolutionary Shipping System

Your business should use a shipping system that combines all of the features and functions listed above. Streamlining the shipping process for a full, comprehensive supply chain requires a shipping system designed for the future.

Sign up for a personalized demo of ShipERP Core to see how shipping systems can boost your shipment processing efficiency.

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