Tip of the month: Reengineer your shipping room


As one automotive parts company found, how your shipping room is organized can have a surprising impact on efficiency.

K2 Motor, based in Walnut, Calif., used e-commerce to increase sales from $2.4 million in 2005 to $20 million in 2011—and sales are still climbing.

"E-commerce means opportunity, if you learn how to capture it," says Jacky Lau, K2 Motor's executive director.

But as K2 found, rising sales meant heavier influxes of shipments—requiring the company to re-approach the way its shipping room was organized.

Following UPS's counsel and best practices for better shipping line organization, the auto parts company was able to more efficiently organize its inventory by structuring commonly ordered items closer to the outbound shipping station. This re-engineering has significantly cut down on the time the company spends fulfilling orders.

UPS designed a shipping station where all outbound goods are scanned, packed, labeled and sealed—using right-sized boxes for each product, with all necessary shipping supplies right at hand.

Additionally, UPS showed the company how to save 30 percent in packaging costs.

Could a warehouse re-engineering help cut unnecessary handling time for your business—and dramatically reduce costs? Contact your UPS account manager to learn more.


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