Most companies today are concerned about efficiency and running a lean business is no longer an option. It is a necessity if you want to keep up with the competition and stay in business. Cutting costs is important especially when it comes to freight rates. When you lower shipping costs, you can greatly increase your company efficiency and profits. Here are some tips to help you lower your freight costs without sacrificing quality.
Carrier Consolidation
Do you know how many carriers your company uses? It could be more than 40 or 50, and this can have an effect on your shipping costs. If you can consolidate and limit the carriers you use, you can usually save money. For instance, you may qualify for cheaper rates when you give one carrier more business. Talk to your carriers about all the discounts they have. You may be surprised at how much you can save.
Limit Overnight and Rush Shipping
Unless your customers specifically ask for expedited shipping, you should go with the lowest costs. It’s nice to offer fast shipping as part of your services but it can increase your freight rates, and this means you have to raise prices eventually if you want to stay in business. Most customers will understand that you have to cut back on costs and if they want faster service, they’ll need to pay extra.
Some Days are Cheaper than Others
If your goods are not perishable, consider shipping on days in which the freight rates are lower. For instance, it usually costs more to ship during the week, because people want their goods for the weekend sales and promotions. If you ship on a Monday or Friday, it can make a big difference.
3PL
Talk to a trusted 3PL provider. These companies are in the business of saving their clients on shipping costs.