Anytime you introduce a new piece of technology into an operation, it’s always first looked at through the lens of, “How much money will this save?”
But, there’s a lot more to a new investment than just looking at the instant savings.
When considering what your company could be saving when using an automated enterprise shipping system, there are two types of savings that come into play: hard-dollar savings and soft-dollar savings.
So, what are hard-dollar savings and what are soft-dollar savings?
Hard-dollar savings: These can be defined as the avoidance or reduction of a cost that you can put a fixed dollar sign to. If one shipping solution costs you less than another, you can instantly calculate how much you can save.
Soft-dollar savings: These include savings that can be hard to quantify into dollar amounts. They can refer to time saved, the number of employees required to complete a task or the reduction of errors within a process.
Soft-dollar savings, like improvements in accountability and efficiency across an office mailing center, may not be as easily quantified but they’re just as important – and organizations that implement automation often see significant gains in day-to-day routines that used to hold back productivity because of their investment.
Cost savings are a type of soft-dollar savings that a company will see after an automated enterprise shipping solution has been implemented.
Not only will your accounting department notice the lower shipping costs, but your customers will too. By providing an accurate postage price at the beginning of the shipping process, you eliminate unexpected costs.
Address errors and rural deliveries can add to extra postage costs that the USPS, FedEx or UPS may add-on afterwards. With an automated enterprise shipping solution, your company can be more transparent and pass the savings on to the customer.
Set reasonable expectations for your company that take soft-dollar, and not just hard-dollar, savings into account.