The Ultimate Guide to Enterprise Shipping
If you are an e-commerce business owner, you are likely well-versed in the term ‘Enterprise Shipping’. But what is enterprise shipping? It is a strategic process mainly of large businesses to systematically manage the movement of goods.
As mentioned earlier, enterprise shipping caters to large businesses that have high volume and require integration of advanced technologies.
Industries that rely on enterprise shipping include e-commerce and retail giants like Amazon & Walmart, healthcare and pharmaceuticals, Automotive, Consumer Electronics, Manufacturing, and industry suppliers, etc.
This article acts as a comprehensive guide and will give you information regarding everything you need to know about enterprise shipping.
What is Enterprise Shipping?
What comes to your mind when you come across the term ‘enterprise‘, something that is large-scale, strategic, and system-driven, technology, and integration, etc. It is pretty much what enterprise shipping is. A well-planned strategic process to coordinate the movement of goods in a large-scale business.
Step-by-Step Process of Enterprise Shipping
How is Enterprise Shipping different from Small Business Shipping?
We have emphasized how enterprise shipping deals with large-scale businesses from the beginning. Let us now decode how it is different from small business shipping.
| ASPECT | ENTERPRISE SHIPPING | SMALL BUSINESS SHIPPING |
|---|---|---|
| SCALE | High volume | Low to moderate volume |
| TECHNOLOGY | Advanced systems (TMS (Transport Management System), ERP (Enterprise Resource Planning System), WMS (Warehouse Management System), API integrations). | Manual processes or basic tools. |
| CARRIER RELATIONSHIPS | Negotiated contracts with multiple carriers, custom Service Level Agreements. | Standard rates, few carrier options. |
| SHIPPING STRATEGY | Optimized routing, rate shopping, and delivery speed tiers. | One-size-fits-all or limited shipping options. |
| FULFILLMENT STRUCTURE | Multiple warehouses and distribution centers. | Single location or limited fulfillment setup. |
| AUTOMATION | High automation across fulfillment, labeling, and tracking. | Minimal automation, often manual handling. |
| TRACKING AND VISIBILITY | Real-time tracking, analytics dashboards, and customer notifications. | Basic tracking via carrier websites. |
| GEOGRAPHIC REACH | Global and regional shipping, cross-border compliance. | Mostly domestic or local shipping. |
| RETURNS MANAGEMENT (REVERSE LOGISTICS) | Structured reverse logistics and restocking systems. | Manual or ad hoc return handling. |
| COSTS | Lower cost per unit due to scale, but high total spend. | Higher cost per unit, less room for negotiation. |
| COMPLIANCE | Must comply with complex international trade laws and documentation. | Basic compliance, often domestic regulations only. |
| CUSTOMER EXPECTATIONS | Demands fast, flexible, and customized delivery experiences. | With more flexibility from customers, expectations may be lower. |
Challenges in Enterprise Shipping
- High Shipping Volume and Coordination
Enterprise businesses handle millions of shipments on a daily basis, toggling between multiple fulfillment centers, so it becomes a task to coordinate and handle shipments.
- Cost Management and Budget Control
Shipping is considered one of the largest operational expenses. It becomes a task for enterprises to minimize the shipping costs while maintaining the quality.
- Carrier Selection and Contract Negotiation
Choosing the right mix of carriers (FedEx, UPS, USPS, DHL) is critical. Negotiating bulk shipping contracts with favorable rates and managing relationships between multiple carrier partners.
- Global Logistics and Compliance
Global shipping causes additional complexities. Navigating customs regulations, duties, and taxes. Complying with international trade laws and documentation requirements.
- Technology Integration and Data Management
To stay competitive, enterprises must integrate advanced systems and manage massive data volumes.
Choosing the Right Shipping Carriers
While choosing the shipping carriers, you need to take into consideration the following factors,
Multicarrier Strategy vs. Single Carrier Partnerships
Multicarrier strategy, as the name suggests it involves integrating multiple carriers like FedEx, DHL, UPS, USPS, etc. for different courses of shipping. It is Ideal for enterprises with diverse shipping needs like domestic+international, small parcels+freight.
In single-carrier partnerships, the entire process of enterprise shipping is carried out by a single carrier. For example, if you choose FedEx as your carrier, then FedEx will handle the entire process from order fulfillment to final delivery. The main advantage of it is that you can negotiate rates and focus on building relations ith one carrier.
Evaluating Service Levels
Evaluate carriers based on the quality of their services:
Carriers offer a variety of services like ground shipping, express shipping, freight shipping, etc. You can go through their services and then choose the one that is suitable for you.
Negotiating Bulk Shipping Rates and Contracts
Enterprises often negotiate custom SLAs and pricing tiers based on shipping volume. Rate negotiations include volume discounts, Fuel surcharge caps, and free pickups.
Integrating with Third-Party Logistics (3PL) Providers
Third-party logistics (3PLs) offer outsourced warehousing, fulfillment, and shipping solutions. They often have pre-negotiated carrier contracts, helping reduce shipping costs. Integration with your WMS (Warehouse Management Systems) or TMS (Transport Management Systems) ensures seamless data flow and order fulfillment.
Essential Enterprise Shipping Technologies
Enterprise shipping deals with millions of packages daily, so carrying out the entire process is a tedious task and not humanly possible; hence, we need to integrate a variety of shipping technologies to make it possible.
Let us now go through the enterprise shipping process and understand what shipping technologies are used.
Order Placed
Technology used – ERP & eCommerce Platform Integration
The process starts when an order is placed through an e-commerce store like Shopify or WooCommerce. The platform automatically records the order details and pushes them to the Enterprise Resource Planning System (ERP). This integration allows automatic order capture, syncing customer, inventory, and product data with your warehouse and shipping systems. Since it is not done manually, it reduces the chance of errors.
Order Fulfillment Begins
Technology used – Warehouse Management System (WMS)
Then the Warehouse Management System (WMS) receives the order details from the Enterprise Resource Planning System (ERP). Once it receives the order, it gets to work and locates the inventory within the warehouse, instructs the robots or staff to pick the order, and also instructs what package to use. Also coordinates with the Transport Management System (TMS) to ensure packaging meets carrier requirements.
Carrier Selection & Label Generation
Technology used – TMS (Transportation Management System)
Now the package is ready to ship, then the Transport Management System (TMS) takes charge and compares carrier rates, chooses the best shipping options, and plans for optimal routes and checks for service levels and SLAs.
Shipment Dispatch & Tracking
Technology used – Automation & Tracking Updates
Once the carrier is chosen, the package is then handed over to the selected carrier. The tracking number is sent to the customer via SMS or email, and also updated in internal dashboards via API.
Automation also ensures both customer support and logistics teams are aligned in real-time.
In-Transit Visibility & Alerts
Technology used – Real-Time Shipment Visibility & Analytics
Real-time tracking shows data regarding the package location, estimated delivery time, and any delays or delivery exceptions.
Also, the dashboard in the Transport Management System (TMS) provides data regarding the carrier performance metrics, delivery success rates and cost trends, and insights.
Post-Delivery Insights & Continuous Improvement
Technology used – Analytics
All the shipping data is combined into reports that help in identifying high-performing carriers. Detect bottlenecks (e.g., slow warehouse zones or frequent delays). Adjust SLAs and carrier contracts based on real delivery performance.
Optimizing Shipping Costs
- Dimensional weight pricing can be managed with careful packing.
- Zone-based shipping and strategic warehouse placement help minimize the shipping distance.
- Rate shopping and least-cost routing ensure the most cost-efficient carrier and route are selected.
- Return shipping optimization reduces the financial burden of returns while improving the customer experience.
Domestic vs. International Enterprise Shipping
| ASPECT | DOMESTIC ENTERPRISE | INTERNATIONAL ENTERPRISE |
|---|---|---|
| DOCUMENTATION AND COMPLIANCE | Simple shipping label, bill of lading, or invoice. | Requires customs declarations, commercial invoices, HS codes, and export permits. |
| DUTIES AND TAXES | Sales tax based on location. | Duties, taxes, and Incoterms apply, varying by destination country. |
| CUSTOMS AND REGULATORY ISSUES | Minimal regulatory issues. | Customs clearance, compliance with international trade laws, and specific export/import regulations. |
| LOGISTICS COMPLEXITY | Shorter transit times, fewer complexities. | Longer transit times, multiple carriers, and geopolitical risks. |
| TRANSPORTATION | Mostly ground shipping or air within the country. | Multimodal transport (air, sea, land) is required, longer distances. |
| FREIGHT FORWARDERS | Not commonly needed, though 3PLs may be used for logistics. | Essential for managing cross-border shipping, documentation, and customs. |
| INCOTERMS (International Commercial Terms) | Not applicable. | Incoterms like FOB, CIF, and DAP determine buyer/seller responsibilities. |
| RISK MANAGEMENT | Lower risk of delay and issues. | Increased risk of delays due to customs, international regulations, or unforeseen geopolitical events. |
| SHIPPING COSTS | Lower costs, fewer variables. | Higher costs due to customs fees, tariffs, freight forwarding, and longer distances. |
Sustainability in Enterprise Shipping
- Green Packaging Solutions
Make use of packaging materials that are biodegradable, recyclable, or made from sustainable sources, and minimizing packaging waste.
- Carbon-Neutral Shipping Options
Offer carbon offset programs or use carriers that provide carbon-neutral shipping services by offsetting emissions produced during transportation.
- Carrier Sustainability Initiatives
Collaborate with shipping carriers that actively promote sustainability through fleet upgrades, energy-efficient transportation, and waste reduction practices.
- How Eco-Friendly Logistics Impact Brand Perception?
Customers are increasingly valuing sustainability and making purchasing decisions based on a company’s environmental practices.
Enterprise Shipping Best Practices
- Regular Shipping Audits and Performance Evaluations
Regularly reviewing shipping processes, carrier performance, and costs to identify inefficiencies and areas for improvement.
- Building Strong Carrier Relationships
Cultivating strong, long-term relationships with carriers to ensure reliable services, preferred rates, and better support.
- Staff Training and Operational Alignment
Ensuring that staff members, especially those involved in logistics and order fulfillment, are trained in the latest shipping technologies, processes, and best practices.
- Leveraging Data for Continuous Improvement
Using data from shipping performance, customer feedback, and operational metrics to identify improvement opportunities and make data-driven decisions.
Conclusion
Enterprise Shipping is a strategic process that involves technology, carrier partnerships, cost control, and global logistics management. As customer expectations continue to rise and supply chains grow more intricate, businesses must evolve their shipping strategies to stay competitive.
Ultimately, mastering enterprise shipping isn’t just about moving products efficiently; it’s about building a resilient, scalable, and customer-first logistics ecosystem that drives long-term success.
FAQs
1. What are Service Level Agreements (SLAs) in enterprise shipping?
A service level agreement is an agreement that outlines the level of service a customer can expect from a service provider.
2. What is a multicarrier shipping strategy?
A multicarrier strategy involves using several shipping carriers instead of relying on one.
3. What are Incoterms, and why are they important in international shipping?
Incoterms (International Commercial Terms) define who is responsible for shipping, insurance, duties, and customs in global trade. They prevent misunderstandings and ensure smooth cross-border transactions.
4. Is sustainable shipping possible at scale?
Yes, with green packaging, carbon-neutral options, and eco-friendly carrier choices.
5. How often should I audit shipping costs?
At least quarterly. Regular audits help identify savings and inefficiencies.
Further Reading
No Comments