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MIKAEEL DEWJI
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BRAD CONNORS
February 27, 2024In the ever-evolving landscape of B2B, or business-to-business logistics, zone skipping emerges as a strategic game-changer, offering a blend of cost efficiency and expedited delivery.
This logistics technique, which involves consolidating shipments based on region and then sending them out in bulk to a specific area, is gaining traction for its ability to streamline shipping processes.
In this blog, we’ll dive straight into the concept of zone skipping and its potential to revolutionize your B2B shipping solutions.
Zone skipping is a logistics optimization strategy where shipments are consolidated based on their destination region and then shipped in bulk to that specific area.
This approach bypasses multiple shipping zones, reducing the number of stops and handling required, thereby cutting down on shipping costs and transit times.
An excellent example of zone skipping in action is a large retailer consolidating shipments for multiple stores in a specific region. Instead of sending individual packages to each store, they send a single truckload to a central hub in the region, from where the packages are distributed locally.
One of the primary advantages of zone skipping is its cost-effectiveness. By consolidating shipments and reducing the number of shipping zones they pass through, businesses can significantly lower their shipping expenses.
Additionally, this method often results in faster delivery times, as shipments are not subject to the delays that can occur with multiple zone transfers.
Zone skipping also allows for more efficient use of transportation resources. By sending larger, consolidated shipments, your business can maximize the space and weight capacity of transportation vehicles, leading to fewer trips on the road!
By consolidating shipments and minimizing the number of transport routes, your business contributes to lower carbon emissions and reduced fuel consumption.
This could be huge, as 84% of customers say that poor environmental practices will alienate them from a brand or company.
Embracing these green practices not only benefits the planet but also positions your business as a forward-thinking leader in environmental stewardship, potentially attracting a broader, more loyal customer base.
Imagine an eCommerce company specializing in electronics, shipping an average of 1,500 packages daily from their central warehouse in Texas to various destinations across the Northeastern United States.
Traditionally, shipping these packages individually might cost the company around $10 per package. However, by implementing zone skipping, the company could consolidate these packages and send them via a truckload carrier to a regional hub in Pennsylvania. From this hub, the packages would be distributed locally at a reduced rate of $4 per package.
By adopting zone skipping, the company's per-package shipping cost drops from $10 to $7.50, translating to a 25% reduction in shipping costs. Over a year, considering 250 business days, this strategy could lead to savings of over $937,500. This significant cost reduction, coupled with more efficient delivery, exemplifies the clear benefits of zone skipping for business-to-business logistics and shipping solutions.
Zone skipping proves most effective for businesses with high-volume shipments spread across various regions.
As explored in our previously mentioned example, a manufacturer shipping products nationwide can use zone skipping to send bulk shipments to regional hubs, reducing the number of long-haul trips.
Implementing zone skipping in your business requires a strategic approach and careful planning.
From analyzing your shipping patterns to identify potential zones for consolidation, to partnering with reliable regional carriers for the last mile of delivery, here are some of the steps you’ll want to follow in more detail to put this into practice as a winning B2B shipping strategy:
By following these steps, you can effectively implement zone skipping as part of your logistics strategy, leading to significant cost savings and improved delivery efficiency.
While zone skipping offers numerous benefits, eCommerce businesses may face challenges such as coordinating with regional carriers and managing last-mile delivery efficiently.
A practical solution is to establish partnerships with reliable local delivery services in each region, ensuring timely and cost-effective final delivery to customers.
Streamline Your Logistics with eShipper
Take the first step towards logistics optimization. Contact eShipper to see how we can streamline your shipping processes with efficient zone skipping strategies.
Zone skipping presents a compelling opportunity for larger eCommerce businesses to optimize their shipping strategies.
By consolidating shipments and reducing the number of shipping zones, your business can achieve significant cost savings and enhance delivery efficiency.
As the eCommerce landscape continues to evolve, adopting innovative logistics strategies like zone skipping will be crucial for staying competitive and meeting customer expectations – as well as keeping up with sustainability trends.
We know this doesn’t sound easy, so let eShipper show you the way. Our expert team is ready to help you begin your logistics optimization with zone skipping!