5 Ways an Outdated Shipping Strategy Erodes Growth and Margin

Shipping is one of the largest recurring costs in most businesses, and at a glance the numbers often appear steady. However, buried in the details are surcharges, rigid contracts, and inefficiencies that erode margins until growth costs more than it delivers.

𝗠𝗮𝗿𝗴𝗶𝗻𝘀 𝘀𝗵𝗿𝗶𝗻𝗸 𝗮𝘀 𝘀𝗵𝗶𝗽𝗽𝗶𝗻𝗴 𝘀𝗽𝗲𝗻𝗱 𝗼𝘂𝘁𝗽𝗮𝗰𝗲𝘀 𝗿𝗲𝘃𝗲𝗻𝘂𝗲
Too often, shipping spend accelerates ahead of sales, leaving margins thinner as the business scales.

𝗢𝘂𝘁𝗱𝗮𝘁𝗲𝗱 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 𝘀𝗹𝗼𝘄 𝗽𝗿𝗼𝗴𝗿𝗲𝘀𝘀
Many companies still rely on spreadsheets, carrier portals, or disconnected tools. That may work at a small scale, but as volumes grow it creates blind spots and bottlenecks. Teams waste hours reconciling data, leadership makes decisions on partial information, and opportunities slip because the system wasn’t built for today’s pace.

𝗛𝗶𝗱𝗱𝗲𝗻 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝘁𝗿𝗮𝗽𝘀
Shipping agreements often conceal costly terms in the fine print: fuel surcharges that fluctuate without warning, accessorial fees for services such as address corrections or handling oversized boxes, and auto-renewals that lock in rates. Each line item may seem small, but together they can drain budgets and erase the savings companies think they have negotiated. What looks like a competitive deal on paper often ends up costing far more in practice.

𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁𝘀 𝗼𝘂𝘁 𝗼𝗳 𝘀𝘆𝗻𝗰
As a business grows, its shipping contracts should evolve accordingly. Too often they do not. Companies can exceed their minimums yet still see no preferential rates, while DIM rules drive up costs as parcel sizes and mixes change. Many contracts also keep businesses paying premium express rates they don’t need, or tie pricing to outdated zones that no longer reflect where customers are located. Growth should unlock better terms, but instead many businesses find themselves stuck with agreements that ignore the very growth they have worked to build.

𝗙𝗶𝗿𝗲𝗳𝗶𝗴𝗵𝘁𝗶𝗻𝗴 𝗵𝗮𝘀 𝗯𝗲𝗰𝗼𝗺𝗲 𝘁𝗵𝗲 𝗻𝗼𝗿𝗺
Invoices rarely match quotes, carrier bills arrive with disputes, and exceptions pile up. Teams spend their days untangling errors to keep shipments moving. Constant rework turns shipping into a reactive circular grind.

That is why we built ShipHub, a platform designed to give enterprises control, visibility, and negotiating power in shipping.

ShipHub delivers the transparency and data needed to secure better contracts, cut hidden costs, and turn logistics into a driver of efficiency instead of a drain on margin.

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