How to Reduce Freight Costs
When you are dealing with lots of shipments, the cost for organizing freights and ensuring your deliveries make it from point A to B on time and safely can make a real dent in your profit margins. It can be hard sometimes to find the best deals when there are so many different offers, services and freight packages available. Although it can be wise to plan for any spikes in the costs, it is much more effective in the long run to reduce the daily costs of freight forwarding your products, goods or documents. To help you out, we’ve put together a list of 5 easy to follow tips for reducing freight costs.
Find Weaknesses by Using Data
If you are using a modern inventory management system, you will be privy to a lot of useful data related to most parts of your operations related to your inventory. You can make use of this data to highlight where there may be weaknesses in your systems and where there have been subpar shipping performances and why.
Use Off-Peak Shipping
You really don’t need to rely on on-peak shipping unless you are sending out goods that are perishable. You could make considerable savings on your shipping expenses by using off-peak services. When customers have time-sensitive deliveries they need to reach them by a specific time, you could offer that at extra cost to them.
Arrange to Ship Fixed Volumes
If your business is a medium to large-sized one, it may help you to save a little by agreeing to buy a fixed space with a specific freight forwarder to benefit from preferential treatment and often very discounted rates. It may be a less viable option for smaller businesses, however, if you ship between set points this could be the best and cheapest option.
Ship Out Less Frequently
Rather than opting to ship out the same volume of items in smaller, more regular consignments, you may want to consider shipping out in bulk. You will benefit from being privy to better rates because carriers like CargoMaster are able to make better use of the space when loading their containers. Furthermore, less time will be required as they won’t need to go through with as much processing, loading, and unloading as many different shipments.
There is also the fact that regular shipping also means customers need to have a larger volume of your inventory than is necessary at that point in time.
Rethink Your Packaging
By far, above all else, the easiest and most effective ways to reduce your freight costs is by thinking carefully about how you package your shipments. As space that is occupied is factored into the price of freights, it is wise to try and eliminate as much dead space as you can. We know what you’re thinking, when you are trying new and untested packaging, it may result in more spoilage and breakages than before. However, you may need to weigh up whether dealing with more stock spoiling or breaking is better than paying higher freight costs.
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We hope you found this blog on 5 Easy to Follow Tips to Reduce Your Freight Costs useful. For more Moving Tips, check out this one blog of How to Make Relocation Less Stressful.
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