Global Shipping Analysis

Project Overview

The global shipping analysis at TLF was an in-depth investigation into the company's direct to consumer distribution model and the costs associated with fulfilling orders across domestic and international markets. Over the course of the reporting period (April 2021 to April 2022), the analysis tracked more than 86,000 shipments across all 50 U.S. states and multiple international regions, comparing what customers paid in shipping versus what TLF was billed by carriers.

Key Findings

The findings highlighted significant discrepancies, with TLF often absorbing higher costs than expected, particularly when using FedEx two day air services for poly pak shipments. The work involved building state by state breakdowns of shipping charges and identifying which states and shipping methods drove the highest losses.

For example, states such as California, Nevada, New Jersey, and Texas showed that air shipments of custom poly paks frequently cost more than the total amount collected from customers for both the product and shipping combined. A notable example was a $1,495 air shipment charge for a single package, which underscored the issue of dimensional weight billing where costs are calculated by package size rather than weight.

Analysis & Solutions

By contrasting air versus ground service charges, the analysis demonstrated that moving more orders to ground shipping could reduce costs by hundreds of dollars per package. International shipments were also closely reviewed, with regions such as Australia, Canada, and Asia Pacific markets showing consistent losses per order due to free shipping promotions and high carrier charges.

The study proposed strategic adjustments including raising the free shipping threshold, reconsidering eligibility for free shipping in certain countries, and sourcing alternative carriers like Asendia or eHub.

Results & Impact

Based on my analysis and recommendations, the operations manager implemented fulfillment strategy changes that reduced shipping costs by $1.80 per package and saved approximately $45,000 annually.