Want to make sure you’re being efficient with shipping costs?
Freight shipping isn’t cheap, so if you want to increase business profits then it’s important that you do everything you can to reduce shipping costs. Freight delivery options can vary quite a bit, so luckily there are ways that you can optimize your use of freight shipping and maximize cost-efficiency for your business shipments.
Luckily, we’re here to help. Below we’ll tell you about the 7 best ways you can reduce the cost of freight shipping.
1. Maximize Orders
One of the best ways that you can pay less on parcel freight logistics is to make sure that you consolidate orders whenever possible. Organizing your shipments so that multiple orders are sent or received at the same time can allow you to pay less on shipping costs overall.
You should also work to maximize your loads as well and should buy as many supplies as possible at one time. If you can make room for more items at your warehouse then buying supplies and materials in bulk can help you to reduce the cost of shipping and ensure that you’re making use of every single shipment that you get.
On the other hand, if you really only need to get a small selection of materials at one time then you may want to try less than truckload (LTL) shipping. The freight shipping rates for LTL can be very reasonable if you only need transport for a smaller amount of cargo.
2. Compare Shipment Rates
Another useful way to pay less on shipping costs is to ensure that you’re always comparing rates for every shipment that you make. Don’t route shipments purely based on habit but make sure that you’re considering your options. Every time your route shipments you should ensure that you’re doing it in the most cost-effective way.
You may be surprised how a different route can have a huge impact on the cost of your freight shipment so make sure you’re considering your options thoroughly.
3. Use Fewer Carriers
Reducing the number of carriers you use can also be helpful for reducing the cost of freight shipping. While it may be sometimes necessary to make use of multiple carriers, it’s a good idea to build a strong relationship with just one.
Having this kind of ongoing relationship with a carrier can allow you to have a better connection. Once they’re used to working with you, they may be more willing to accommodate special requirements or allow for special discounts from time to time.
Additionally, by having fewer carriers you may have less congestion in your shipping area or dock and this can also help to create better efficiency in your business.
4. Find a Great Logistics Partner
Having a great logistics partner workingn with your company can also make a big difference in your abilitty to reduce freight costs.
While not every logistics partner is created equally, a reliable one will help you to always get the best rates whether you’re working with truckers, steamships, or air freight companies. The more carrier relationships your logistics partner has, the more likely it will be that they can help you get the lowest rates for your needs.
Additionally, it’s also important that you make sure that any logistics partner that you work with allows you to have a lot of visibility into the supply chain at every level. Increased supply chain visibility can help you increase effciently and more quickly manage problems and customer complaints if and when they arise.
5. Invest in Quality Packaging
Another way you can improve freight prices is to make sure that you’re being wise and optimizing your packaging and handling. You’ll want to do your research to see how your damage ratio is compared to the standards for your industry.
Working to minimize the damage that is sustained during freight shipping is crucial because doing so can help lower the administrative costs of claims processing and will ensure you keep getting the best freight rates. Investing in more quality packaging and handling can allow you to see the benefits and you’ll pay less on shipping overall as a result.
6. Regularly Evaluate Carrier Performance
Many companies take their relationships with carriers for granted and fail to evaluate them thoroughly to ensure they remain the right choice for the job.
Even if a carrier has exceeded expectations in the past it doesn’t mean that they always will. You should closely evaluate your carrier’s performance from time to time to ensure that they’re delivering on their promises. Make sure that they are remaining competitive with other carriers in your industry.
Be sure to look at the right benchmarks including the percentage of on-time shipments, claim ratios, and more to ensure that they’re still right for your needs.
7. Carefully Consider Transportation Methods
Ensuring that you’re using the right transportation method for each shipment is important to consistently get the best bang for your buck and to not spend more than necessary.
You don’t have to only use one freight method for your shipments. At times, one method will be better than another. Air, ocean, rail, and land-based freight carriers all have their place and one may be better than another for a specific shipment.
Consider your options thoroughly and make sure that you’re always using the right one for the specific needs. Your logistics partner can help you decide which transportation method is best for your cargo and which will be best for a specific shipment or destination.
Using These Tips to Reduce the Cost of Freight Shipping
If you want to lower the cost of freight shipping you should do everything in your power to scrutinize your current methods and look for ways that you can change and improve. By using the tips above you’ll ensure that you’re paying as little as possible for freight shipping.
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