Strategies That Reduce Freight Costs

Ship only on off-peak days –

Consider using traditionally off-peak shipping days to have your product picked up by your carrier to save money per shipment. Only consider it if it is not going to cause any issues with your customers.

 

For smaller shipment consider using a consolidation program –

LTL shipments can be considerably expensive since they are much smaller than a TL shipment. There are, however, ways to consolidate smaller shipments with other local businesses to create one large, TL and each partner only pays for a smaller portion of the total freight charge. This is a perfect arrangement for all parties involved.

 

Develop long-term agreements with freight shipping –

Instead of always looking for a cheaper freight carrier, consider establishing long-term contracts with your freight carriers to get them to offer you a better rate.

 

Changing your shipping lead times –

By adding extra time to lead time that you give to your customers you should be able to find a cheaper carrier that will still get your customer their product and you potentially end up paying less.

 

Reduce unnecessary weight per pallet –

Try not to use too much unnecessary packing material to convince yourself that it is going to be less likely to get damaged it has all that extra stuff on it.

 

Reduce the number of pallets used on LTL ships –

When it comes to your LTL shipment your carrier will likely offer a lower rate if you have a smaller number of pallets. This may require some creative pallet loading and unbox to accomplish this.

 

Show the carrier that your company loads trucks quickly –

It is typical for a carrier to set aside a two-hour window for loading out a truck when they make their scheduling of pickups. If you are one of those businesses that consistently load their truck quickly, it is possible that you can be given a favorable freight shipping rate.

 

Use night pick hours as ways to use backhaul opportunities with certain carries –

You can offer your carrier to arrive after hours when it might be more convenient (backhaul situation) to arrive after the dock would typically be closed and there would potentially be a way to save money.

 

Change how you ship the product to move more product, but less often –

If you currently have agreements with customers to ship products in small size shipments, you should consider incentivizing them to take accept larger shipments less frequently. This will help to reduce your overall freight shipping costs.

Use a carrier located close to where you are shipping to –

Using a local carrier that is nearby your ship to location should allow the carrier to offer you a lower rate since your shipment will likely be considered a backhaul. This will make it possible for the carrier to fill empty hours for one of their trucks heading back to their facility. This should result is a much lower shipping rate and therefore save a considerable amount of money.

 

Matrix Transportation is the fastest growing freight transport company in the Midwest, founded in 2009.  As an up and coming industry leader in freight management including shipping, warehousing, and cross docking services with the highest quality transportation solutions for the manufacturing and automotive industries. More information can be found at http://www.matrixtransportation.com/.

This entry was posted in Uncategorized and tagged , , , , , . Bookmark the permalink.

Leave a Reply