Wondering how to cut down on freight costs?
It’s a challenge many face, but there are effective solutions.
Discover the key strategies in the video below!
Reducing Freight Costs: Key Strategies
Freight costs remain a significant concern for many businesses, as highlighted in a recent logistics webinar. Here are seven strategies to help reduce these expenses effectively.
Avoid Rate-Cutting Missteps
Pressuring freight carriers to lower rates is a common tactic, but it often backfires due to the thin margins in the transport industry. Instead, focus on creating efficiencies by changing how you manage and present your freight.
Leverage Volume Across Operations
By consolidating freight needs across different branches or divisions, businesses can negotiate better rates from carriers. This approach leverages higher volumes to secure more favorable terms and eliminates the inefficiencies of managing multiple contracts at varying rates.
Optimize Transport Resources
Ensure that the transport resources you use are well-suited to your needs. This includes choosing appropriately sized vehicles and considering any necessary attachments like tail lifts or cranes. Regularly assess your transport resources to maintain cost-effectiveness.
Select the Right Rate Structure
Choosing the right rate structure—whether per ton, pallet, or truckload—can significantly impact your freight costs. Aligning the rate structure with your shipment profile is key to maximizing savings.
Related articles on this topic have appeared throughout our website, check them out:
- 10 Freight Management Mistakes and How to Avoid Them
- Freight Benchmarking: What Is It? Why Do It?
- Why Containerised Freight Shipping is Daunting for SMEs
- 12 Smart Ways to Reduce Your Freight Costs
- There’s a Less Frustrating Way to Negotiate Freight Contracts
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated August 21, 2024, under the title “How to Reduce Freight Costs – Key Tips Many People Miss“.
