Looking to reduce the costs of doing business? Who isn’t?
Companies ship their products down the street and around the world every day. In fact, shipping can be one of the more substantial expenses for a business – small or large. And in today’s competitive global marketplace, you need to keep on top of your expenses and be on the lookout for creative ways to reduce the costs of doing business.
What you pay to ship your product is a moving target, with daily fluctuations in oil prices and freight companies restructuring or amalgamating on a regular basis. In the spirit of reducing those costs, here are seven things you can optimize to cut costs
1. Mode of transport
Air is of course the quickest way to move product, but it is also the most expensive. Consider using other modes, even just for part of the trip.
2. FTLs and LTLs
Ship full truckloads (FTLs) whenever possible. If time allows, hold onto smaller shipments and consolidate them until you have a FTL. Smaller companies – since they lack large freight volumes – often end up using higher-cost, less-than-truckload (LTL) shipments. One way for these companies to level the playing field is load consolidate with other firms, even competitors, when moving product to the same customers.
3. Data entry and documentation errors
These are surprisingly common, but, with the right attention to detail, they can be avoided.
4. Correct classification
For international shipping, classifying your goods correctly is both a legal requirement and another way to ensure you only pay what you need to.
5. "Discounts"
Closely examine quoted rates and discounts offered by freight companies to understand their true value. Some claimed discounts are anything but. Peek under the hood of these offers to make sure they truly deliver a cost savings.
6. Making use of technology
Going paperless and online throughout the journey of a shipment can increase efficiencies and keep costs down. Update your tracking and shipping programs to make use of technology-based savings.
7. Crossdocking
This is the practice of quickly transitioning incoming shipments into outgoing ones, using the loading dock as a staging area and eliminating expenses for warehousing the stock in the interim.
Be flexible and open to change. There are more ways out there to get creative when it comes to lowering freight costs. We can help you identify the cost-saving measures available to you, while ensuring the quality of your business remains as high as ever.
For detailed information, contact your Logistics Coordinator. For more general information, contact us today to discuss your shipping needs.
Information provided by: Freight Dept. - Cole International
