If you’re looking to improve supply chain margins without a complete operational overhaul, there are fast, practical changes you can make right now.
These quick wins don’t require major system shifts — just thoughtful tweaks that can add 1–3% to your bottom line, often with no impact to the customer.
Here are six of the most effective margin moves.
1. Move from Air to Ocean Freight
It’s the classic margin lever — and still wildly underused.
Switching even part of your volume from air to ocean can dramatically cut freight costs.
💡 Pro tip: Use ocean for replenishment and reserve air for launch or stockouts.
Even hybrid strategies can significantly improve supply chain margins.
2. Hold Less Inventory
Inventory is cash — and it eats margin via storage, obsolescence, and insurance.
You don’t need to run JIT (Just-in-Time), but:
✅ Tighter demand forecasts
✅ Smaller, more frequent PO’s
✅ Smarter reorder points
…can all lead to leaner working capital and better margins.
3. Reduce the Number of Picks Per Order
Every pick costs time and money.
Reducing the number of picks per order — by bundling SKUs, simplifying kits, or offering fewer options — can lower fulfillment labor costs.
Even just 0.1 minutes saved per order compounds fast over thousands of shipments.
4. Consolidate SKUs and Concentrate Volume
More SKUs means more complexity — and less volume per product.
Focusing on top-performing SKUs lets you:
- Order in larger quantities (better unit costs)
- Store more efficiently
- Reduce picking complexity
Fewer SKUs = fewer headaches = higher margins.
5. Slow Down Shipping (Smartly)
Not every customer needs their product tomorrow.
Use longer delivery windows as your default option and only speed up shipping when it’s paid for or necessary.
Example: Offering 5-day shipping (instead of 2-day) by default can reduce costs by 30–50% while improving your supply chain margins.
6. Shift Shipping Destinations from Residential to Commercial
Shipping to residential addresses costs more — and comes with more delivery risks.
If you sell to small businesses or offer bulk ordering, incentivize business deliveries when possible.
Fewer missed deliveries and lower last-mile fees = healthier margins.
Bottom Line: Margin Gains Are Hiding in Plain Sight
To improve supply chain margins, you don’t need to reinvent your entire operation.
You just need to:
✅ Audit freight modes
✅ Reevaluate inventory policies
✅ Simplify fulfillment
✅ Get strategic with shipping
At Izba, we help companies find these levers and turn them into real, measurable gains.
Need help improving supply chain margins? Let’s talk.
