Centralized shipments: a practical guide for management

With the continuous increase in order volume for companies of all sizes, it is becoming increasingly necessary to centralize shipments and unify distribution channels into a few touchpoints. 

Advantages of a centralized shipping system

A centralized shipping management system offers numerous benefits that go far beyond simple logistical organization. First of all, centralization means unifying the control of all shipping processes under a single business entity, eliminating the fragmentation that often characterizes this activity and improving the operational efficiency of all teams involved in daily logistics management.

However, centralizing shipments brings many other advantages, which we will briefly explore below. 

Reduction in operating costs

Centralizing transportation and shipping operations results in substantial cost savings through several mechanisms. A centralized organization helps reduce occupied space and cut costs related to logistics, labor, and vehicles. Moreover, it facilitates shipment tracking itself, further improving operational efficiency and, indirectly, customer satisfaction.

The main sources of savings include:

1. Elimination of overlapping logistics costs thanks to unified indirect functions
2. Greater bargaining power with transportation service providers
3. Optimization of available resources, including warehouses and transport vehicles

When transportation and shipping are not centralized, procurement is often delegated to different company functions, making cost control difficult. On the other hand, a centralized system allows constant monitoring of transport expenses and identification of new savings margins.

Improved traceability

Traceability is a key element of any shipping management system. A centralized system allows for shipment monitoring at any time, from warehouse departure to final destination.

This full visibility over the supply chain offers several benefits: thanks to real-time data detection and management, it provides greater security and control over goods’ journeys. In the case of deviations or temperature issues, the staff is immediately alerted with personalized notifications.

A strong, centralized traceability system is necessary to collect, analyze, share, and effectively store data. Standardization and consistency of information ensure higher data reliability, enhancing the decision-making process.

Tools like ShippyPro Optimizer offer pre-configured dashboards where you can granularly monitor harmonized data from all carriers down to the single shipment or ZIP code level.

Optimized delivery times

Centralized management allows for optimized transport routes, reducing time and costs through routes designed to minimize fuel usage, tolls, and distance.

The centralized model supports optimal transport route planning. Rather than stopping at multiple hubs, a driver loads the truck once, reducing driving hours and boosting productivity.

Centralization also enables automation of repetitive manual tasks, freeing up resources for more strategic activities. It also reduces errors caused by manual data entry, improving process reliability.

In conclusion, a centralized system enables consistent handling of operational challenges and carrier issues across all regions of the network, improving overall efficiency and reducing delivery times.

Technologies and software for shipping management

Building an effective centralized system requires adopting specific technologies that work in synergy to optimize the entire shipping process. Choosing the right tools is the backbone of any centralization project.

Warehouse Management Software (WMS)

Warehouse Management Software (WMS) provides an overview of all warehouse operations in real time, optimizing material and resource flows. An effective WMS allows you to:

• Speed up storage activities and reduce errors
• Optimize available space through smart slotting
• Automate repetitive tasks and cut operational costs
• Synchronize warehouse and yard operations
  
  

Shipping management platforms

Shipping management platforms act as central hubs to oversee all transport-related operations. These solutions centralize the entire process into one interface, allowing for the simultaneous management of multiple carriers. You can configure custom rules by area, ZIP code, and weight to optimize each shipment according to specific needs.

Selecting the most cost-effective carrier based on weight, size, and destination not only cuts costs but also enhances delivery speed. Additionally, these platforms automate label and transport document generation, significantly reducing human error risks.

Tracking and monitoring tools

Track and trace tools provide full visibility over every phase of the shipment—from warehouse departure to customer delivery. This is essential for any centralized system, allowing quick detection and resolution of issues.

Every event is logged and verified in the system. If something goes wrong, an alert is generated for immediate action. Thus, in case of disputes or damage, it’s easy to identify and isolate the specific issue.

ERP system integration

Integrating with company ERP systems is crucial to the success of a centralized system. This enables automatic data exchange across software platforms, ensuring a continuous flow between orders, inventory, and shipping.

The software’s ability to integrate seamlessly with company systems is essential to unlocking logistics value in terms of agility and competitiveness. This integration keeps stock, pricing, and order data up to date, enabling full control over item availability and status.

How to build a centralized shipping system

Practical implementation is the crucial step in building an effective centralized shipping system. After analyzing needs and selecting the right technologies, it’s time to put the plan into action.

Setting up the central logistics hub

The logistics hub is the heart of centralized shipping. This space is dedicated to transport, classification, and goods distribution, optimizing the entire supply chain. Designing the hub requires an initial analysis to plan building access, loading bay placement, and the flow of people and vehicles on-site.

An efficient hub should coordinate with the main warehouse and include spaces for value-added services, cross-docking, and returns handling.

Software configuration

Warehouse Management Software (WMS) is the coordinating brain of the logistics hub. It synchronizes operational cycles between the distribution center and logistics platform, providing ongoing inventory control across all company warehouses.

At this stage, the system should be configured to:

• Sync the WMS with carrier systems to speed up shipping
• Automate label and transport document generation
• Set custom rules by zone, ZIP code, and weight

Staff training

No system—however advanced—can work without properly trained personnel. Training should focus on both technical aspects and soft skills needed to manage a centralized system.

It’s best to develop a structured corporate training plan, identify skill gaps, and provide targeted courses. Digital platforms today offer effective solutions for continuous learning and microlearning, allowing flexible upskilling.

Testing and launch phase

Before fully switching to the new system, a complete “GoLive” session is essential. This includes:

• Testing pricing, transit times, and CO2 impact calculations
• Test bookings using real data for accuracy checks
• Printing documents including labels, declarations, and shipping notes
• Verifying integration with external systems

Parametric testing helps resolve typical issues like short circuits and ensures all system components function correctly, avoiding irreversible issues during daily operations.

Conclusion

Building a centralized shipping system is a strategic move for any modern company. While implementation requires a significant initial investment in resources, technology, and training,

the tangible benefits—from reduced operating costs and better traceability to faster deliveries and process automation—far outweigh that effort. Careful needs analysis and smart tech selection are the foundation of an efficient and lasting system.

The key to success lies in a structured implementation approach, from setting up the logistics hub to continuous process optimization. Through this roadmap, companies can turn shipping from a cost center into a real competitive advantage.