Businesses implement different strategies to streamline their processes and reduce their operational costs. However, many think that they cannot save money in shipping as they assume the costs are fixed. In fact, there are many innovative ways that help in reducing freight charges. Below are 5 such tips.
1. Weigh the Load Accurately
The shipping costs are directly proportional to the weight of the product being shipped. You may run the risk of paying extra money for an incorrectly weighed load. Investing in industrial scales would be beneficial.
Ensure that each load is weighed accurately using truck scales. By doing this, you won’t run the risk of overpaying for incorrectly weighed items. It will also reduce the risk of paying overweight fines.
2. Package Smartly
Consider the design packaging and carton sizes to increase the truck freight efficiency. When you minimize the space that each product needs, you get more value for money with each shipment. In order to easily get the best plan to load the container or truck - use the Load Calculator online application.
Look for cheap yet effective packaging materials. Reduce the quantity of support packaging. Talk to your shipping carrier about different ways to optimize your packaging.
This will help you save money on supply costs and free up space, allowing you to ship more products in a single shipment.
3. Choose the Right Transportation Mode
There are three primary ways to ship the goods:
- Air
- Ocean
- Ground (Rail or Road)
Evaluate which of these modes would be cheaper for you. If you are difficult to orient in the market and afraid of opaque pricing - compare the ways of delivery with help of Logistics Explorer platform. You can find any cost of delivery in a few clicks in it, both on the PC and a smartphone.
Typically, shipping via sea is cheaper than shipping by air, especially for international goods. Delivery of local goods would be faster and cheaper by ground. Calculate the travel distance, weight of the package and delivery time to choose the best shipping option. You can cut costs and improve delivery time by using a combination of all three shipping options.
4. Ship During Off-Peak Hours
Did you know that by adjusting your shipping by a day or a couple of hours into off-peak hours can help you save money?
The day and time you choose to ship impacts the shipping freight rates. Ship on off-peak days like Fridays or Mondays as they are low-traffic days. You can save almost 10% as compared to shipping on peak days.
You can offer your carrier to pick up loads into a backhaul after other shippers have closed their docks. The practice of including evening backhauls can cut up to 15%-20% off standard shipping rates.
5. Develop Strong Relationships
Build a long-term and strategic relationship with your shipping carrier rather than trying to adjust each year to the rising prices. You would be at a disadvantage if you constantly move from one carrier to another.
You will get a better contract, mostly without yearly hikes, through a long-term relationship with one carrier. Moreover, you can be assured of great service too.
6. Miscellaneous Tip
Ship more products in fewer runs instead of shipping smaller quantities multiple times. Encourage your vendors to place large orders by giving them a good price.
By streamlining the shipping process and implementing smart strategies, you can successfully cut costs and maximize efficiency
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