What are logistics companies and how can they solve small business shipping challenges?
Managing logistics and shipping can often feel like one of the more complicated parts of running a small business. And finding the time to optimize your supply chain can be difficult, even though it’s a crucial part of your small business growth strategy. It’s why many small and medium-sized businesses (SMBs) outsource tasks, such as letting third-party logistics companies handle their shipments. But why are SMBs choosing to outsource their logistics operations specifically? It’s because having a shipping provider is a highly beneficial logistics strategy.
A 2022 report revealed that 90% of SMBs planned to outsource a variety of business tasks, compared to 80% the previous year.
In this article, we discuss how to solve common small business shipping challenges and how the right shipping partner, like Purolator, can help your business more easily navigate the complexities of supply chain management in a rapidly evolving market.
Key takeaways
- Challenges and solutions for small and medium-sized enterprises
- Boosting customer satisfaction and retention with inventory management strategies
- Reverse logistics as a business opportunity
- Optimizing shipping costs for small and medium-sized businesses
- Last-mile delivery solutions for small and medium-sized business success
- Improve your shipping and logistics with Purolator’s solutions
Challenges and solutions for small and medium-sized enterprises
Let’s take a closer look at the logistics problems small business owners face and how the right shipping partner can help your business solve these issues by improving customer satisfaction while also optimizing costs. Here’s a list of common logistics problems and their solutions:
The rising cost of transportation
Challenge: With large e-commerce businesses dominating the market, your customers often want faster shipping at a lower cost. As a small business, being able to meet these demands can be difficult.
Solution: A shipping partner like Purolator will be able to help you balance meeting customers demands while keeping costs under control by streamlining your logistics with consolidated shipments, flexible shipping options and route optimization.
Providing exceptional customer service
Challenge: Quality customer service enables proactive logistics solutions and is critical for building your company’s reputation and client retention in the logistics sector. The level of customer service your business can provide is a measure of your ability to improve performance while helping to solve common issues like unclear tracking, shipment statuses and miscommunication.
Solution: Eliminate common logistics challenges with Purolator’s quality customer service. Your customers can contact us however they please, whether it’s by calling our 24/7 support hotlines, chatting to our virtual assistant online or even by tagging Purolator on social media platforms like X.
Inventory management
Challenge: Warehousing and inventory management helps you increase customer satisfaction and decreases storage costs and inefficiencies, but it can be costly for your business to invest in. On the other hand, limited or inefficient warehousing in-store is one of the causes of shipping delays.
Solution: Instead of storing goods in-store, Purolator supports your inventory management strategies with localized distribution centres. By storing products closer to your customers with local warehouses that support faster delivery, you can focus on your business goals while knowing that your customers’ needs are being met.
Using and investing in suitable technology
Challenge: Even though tech-based solutions (like cloud technology) can streamline your logistical operations, they may also be expensive and intimidating.
Solution: Partnering with a shipping provider who offers integrated e-commerce tools allows you to unify various systems online, such as shipping, tracking, estimates, pickups and returns for a smoother eCommerce experience.
Returns and reverse logistics
Challenge: A streamlined returns process keeps customers happy and can potentially boost retention. Returns should be convenient for customers and seamless for your business, getting items restocked and ready for resale as quickly as possible.
Solution: Purolator offers an easy returns process that gives your customers more flexibility than ever, with later drop-off times and over 2,900 retail and Mobile Quick Stop locations across Canada.
Sustainable shipping
Challenge: Customers are demanding for more sustainable shipping practices. Sustainable logistics often involves optimizing routes, reducing fuel consumption and minimizing package waste.
Solution: Purolator uses electric and alternative-fuel delivery fleets to engage in more sustainable practices and help our clients do the same. We also aim to reduce greenhouse gas (GHG) emissions by 80,000 tonnes of carbon dioxide equivalent (CO2e) by 2030.
Complex regulatory compliance
Challenge: Navigating regulations can be difficult for small or new businesses, especially when you’re new to shipping cross-border or transporting goods that are categorized as hazardous.
Solution: Purolator has regulatory compliance experts who can provide valuable guidance on international and local regulations, ensuring that your shipments are safely delivered to your customers and reducing the chances a package is delayed in transit.
Carrier reliability
Challenge: Consistent performance is important for building trust with your customers, reducing the likelihood of unexpected delivery delays. But as your business expands, maintaining that consistency even as shipping volumes increase can be challenging
Solution: Reliable carriers like Purolator are able to handle increased shipping volumes and continue to provide high-quality service as your business expands.
Boosting customer satisfaction and retention with inventory management strategies
Both customer satisfaction and inventory management are two common shipping issues that SMBs need to solve. Luckily, customer retention can be boosted via supply chain strategies like effective inventory management, so these two problems can be solved together. Accurate inventory tracking is essential for avoiding stockouts and overstock situations, which not only enhances customer satisfaction but also keeps storage and procurement costs under control. To achieve inventory management success:
- Take a proactive, data-based approach to your inventory to position your business to meet customer demands. Regular inventory audits can help you gain a clearer understanding of your stock, allowing you to prepare for shifts in demand before they happen.
- Pay attention to changing market demands, peak periods and historical sales data. Use this information as a cornerstone of your inventory management. This approach will help you make more informed decisions. Consider options like demand forecasting and keeping safety stock on hand to mitigate the risks of overstock or stockouts.
- Use regional shared warehouses to support faster delivery by storing products in locations that are closer to your customers.
At Purolator, we offer inventory management and warehousing solutions that are powered by our vast network and the latest in automation technology. We can reach 100% of Canadian postal codes, which means you can rely on our distribution centres to store and deliver products to customers in any part of Canada. Additionally, our National Hub uses world-class automation technology to enable faster sorting and picking—keeping your shipments on the move.
Discover the key to better inventory strategies and solving logistics challenges. Streamline supply chain management
Reverse logistics as a business opportunity
Customer returns present a valuable opportunity for your business to turn challenges into growth prospects. With up to 40% of consumers returning products at some point, managing returns efficiently is crucial for maintaining revenue and customer retention. By streamlining your returns process, you can foster customer loyalty and support sustainability efforts, too. But how exactly do you turn these challenges into opportunities?
With Purolator, you’ll have an easy way to transform reverse logistics challenges into opportunities for customer satisfaction and retention. Make returns more convenient with our variety of shipping locations and access points, such as Mobile Quick Stops, Quick Stop Kiosks and parcel lockers. At the same time, partnering with Purolator gives you access to decarbonization strategies. We focus on reducing fleet emissions, optimizing fuel use and minimizing package waste, making your reverse logistics both effective and eco-friendly.
Boost customer retention with quick and convenient returns. Simplify returns management
Optimizing shipping costs for small and medium-sized businesses
If you’re looking to maintain your bottom line amidst rising fuel prices, then optimizing your shipping costs is key. With transportation expenses on the rise, partnering with a shipping provider that offers comprehensive solutions to streamline your supply chain can make a significant difference. By implementing the following strategies, your business can mitigate the impact of fuel cost increases and target more predictable and manageable shipping expenses.
Consolidating shipments: If your business uses freight shipments, consolidating shipments or using less-than-truckload (LTL) shipping is an affordable solution that can reduce costs. Expedited LTL shipping allows you to consolidate your shipments with other businesses in a single truck for more economical shipping. This method also ensures you only pay for the space you use.
Streamlining the packaging process: Efficient shipping practices start before your package is sent out. In the packaging phase, be sure to use boxes and packaging materials appropriate for each item’s size and fragility. This helps prevent damage in transit, saves money on packaging materials and makes your packaging process more efficient and sustainable.
Special handling and regulatory compliance: Proper regulatory compliance and special handling ensure your shipments meet legal requirements and are managed correctly, minimizing shipping delays, fines and potential damage. This helps you avoid unexpected costs from reshipments while keeping customers satisfied with intact deliveries that arrive on time.
Flexible shipping options: A knowledgeable shipping partner will help you keep costs down by offering a range of delivery methods. For example, when shipping certain products, express logistics may be more appropriate and cost-effective than shipping by air. Additionally, there may be times where you require weekend delivery. Does Purolator deliver on weekends? The answer is yes! Saturday delivery is available to customers in Canada and the U.S.
Route optimization: By finding the most efficient way to get from point A to B, route optimization reduces the distance and time vehicles travel, which can cut fuel consumption and lower transportation costs. At the same time, it helps shipments get to your customers faster.
Leveraging promotions and offerings: Shipping partners like Purolator will occasionally offer promotions for certain shipping solutions or sign-up bonuses. By taking these opportunities when they’re available, you can save on costs while still getting the logistics services you need.
Save up to 65% off on all shipments for 12 months.† Sign up and save
Custom shipping solutions for every industry
Purolator is experienced in handling logistics for businesses in a wide range of industries. We know how to find industry-specific solutions when it comes to packaging and delivery services. For example, our partners at the Toronto Zoo came to us with a highly specialized shipment. They required a time-sensitive delivery, temperature control and special handling for an overweight item that needed to be shipped from Ontario to British Columbia. We employed our expertise to build a customized shipping container to safely contain the item, while using our dangerous goods capabilities to transport it seamlessly across the country. This shows how vital it is to have a shipping partner who is willing to accommodate special requests and think outside of the box to create customized solutions whenever your business needs them.
Our shipment was quite large and very heavy and needed to get across the country to BC in a timely fashion under temperature control. That was something I hadn’t had to do before. Purolator was fantastic in creating a custom solution for such an unusual and special project.
— Christina Hogan, Learning & Engagement Interpretation Coordinator, Toronto Zoo
Learn how Purolator delivered a highly customized shipping request safely and on time for the Toronto Zoo. Watch the video
Last-mile delivery solutions for small and medium-sized business success
Winning the last mile is pivotal to customer satisfaction, yet it can make up a substantial expense for SMBs. On average, last-mile delivery accounts for 53% of total shipping costs. To manage these costs effectively, consider partnering with a shipping provider that delivers both efficiency and affordability. By selecting a provider with optimized last-mile solutions, such as advanced logistics tracking and flexible delivery options, your business can better manage expenses while prioritizing customer experience.
By partnering with Purolator, SMBs can expect the following solutions:
- Localized distribution centres: Using strategically located distribution centres supports better inventory management and faster shipping in the last mile of delivery.
- Flexible ground shipping options: Keep transportation costs manageable by choosing from Purolator’s wide selection of ground shipping services in Canada. Choose the standard service for a more economical solution, or opt for the express option for next day delivery by Purolator. Whichever option you choose, know that Purolator’s Canadian ground services deliver your shipments on time more often than the competition.*
- Personalized delivery: Working with a shipping provider that offers personalized shipping enhances the customer experience and promotes loyalty. Purolator has a range of options including next-day delivery and customizable delivery preferences through Purolator Your Way, as well as mobile pickup and drop-off points for even more convenience.
- Purolator’s extensive network coverage: Purolator has wide-reaching networks in the U.S. and internationally. We also deliver to all Canadian postal codes, helping businesses reach new markets in remote and rural areas.
- Tracking solutions: To help ensure a package reaches your customer’s hands, Purolator offers Photo Proof of Delivery. Visually confirming that the package was delivered to the correct location improves customer trust and can prevent disputes—contributing to a more successful last-mile delivery experience.
- Support for shipping and beyond: Purolator doesn’t just support your small business with shipping solutions. We are dedicated to supporting small businesses in as many ways as possible, which is why we created the Purolator True North Small Business Grant. Your small business can win significant funding in the True North Small Business Grant Contest, an annual initiative to support the future and growth of small businesses in Canada.
Improve your shipping and logistics with Purolator’s solutions
Your business’ growth is tied to the efficiency of your logistical operations. With Purolator’s support, overcoming any logistical issues is within reach. We’re committed to propelling small business growth strategies with our comprehensive logistics solutions, and overcoming challenges in critical areas such as inventory management, shipping optimization and customer retention. Whether you’re looking to boost customer satisfaction or elevate your shipping processes, our experts are ready to guide you towards success. Reach out today to discover how Purolator can support your business.
*Information sourced from ShipMatrix
†Offer valid for new business accounts only. Enrollment may take up to three (3) business days to take effect. Applicable discounts, as determined at Purolator’s discretion, will be applied to Purolator’s published rates, available at Purolator.com/rates, and applied to eligible Purolator shipments made within the first twelve (12) months following date of enrollment. Discount does not apply to taxes, specialized services, administrative charges, or all applicable surcharges. Offer has no cash value and cannot be combined with any other Purolator discount, offer, promotion or coupon. Not valid on prior shipments. If there are any discrepancies between Purolator’s calculation of the discount and any other parties’ calculation of the discount, Purolator’s calculation shall govern.