What is the Changeover?
Changeover is adjusting specific components in shipping and manufacturing for better efficiency. There are several types of changeovers, such as fuel changeover or the FCS, component changeover in product manufacturing, or redirecting the flow of a product in shipping. An inevitable downtime accompanies the process, but the efficiency gained and the cost reduction make up for the delay.
Significance of Changeover in an E-commerce Shipping and Delivery
Changeover allows a company to alter a process’s course efficiently and redirect it elsewhere. It manages unforeseen changes in delivery schedules and risks associated with fuel consumption with optimal lag.
- Unforeseen risk mitigation: A shipping cycle comprises several processes that different contractors carry. There are several instances where the destination of a product changes. Such situations can dismember a shipping cycle. A well-coordinated changeover allows companies to deal with such issues efficiently, with minimum turnaround time.
- Fuel savings during transit: An FCS is carried out to ensure optimum fuel usage, leading to cost savings during the middle-mile delivery.
Prerequisites of Changeover and How It Works
Every type of changeover varies per the given situation. For changeover in an ongoing shipping cycle, a change of destination (COD) must be issued by the customer and acknowledged by a brand. On the other hand, FCS requires the SOx emission of a vessel to be higher than the allowed emission in certain zones.
A freight forwarding company handles the process for a changeover in shipping at the seller’s request. The destination is re-evaluated, and a new cycle is created per the product’s location.
Use Case with Changeover
A seller shipped a pair of jeans to Manila city from Davao three days ago. However, the customer issued a request for a change in destination to Antipolo. The shipping company accepted the request, and the merchant notified the shipping company. After the Manila warehouse received the product, it was shipped out again per the new cycle. Subsequently, the buyer paid an additional ₱46 for the changeover.
