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Ways to Lowering Freight Shipping Costs For Business

cross docking vs warehousing

Shipping costs are one of the most expensive costs of the business and thus they should be dealt with intelligently. Ways should always be found out to lower freight shipping costs for the business so that the business saves time, money and resources.

These are some ways in which Freight shipping costs can be lowered

Economies Of Scale

It makes sense to ship more together than less separately and thus you can get big discounts because of economies of scale. Also the carrier will give you a better price as he is getting business in bulk and thus it makes complete sense to go for economies of scale while shipping goods as that will ensure that your costs stay low while your business flourishes.

A Mix Of Air, Water And Land Transport

We all know that water transport is cheaper than air and so on and so forth and thus it is critical to use a mixture of air, water and land transport to get the best deals and also save on a lot of precious funds and time. But again it all depends on the time required and on other factors and thus it is critical to use an intelligent combination of all the three modes of transport to get the right mix to maximize profit and drive customer satisfaction

Ship More In One Go Rather Than Small Shipments

It makes more sense in shipping more in one go than shipping small packages separately. You will be able to benefit from economies of scale and the transport and shipping costs will be much less and then you can pass on the savings to the end customer which will drive customer satisfaction.

Thus always go for large one time parcels rather than small parcels separately as you will soon realize that it just does not only make business sense but also drives customer delight and satisfaction.

Efficency And Effectiveness In Packaging And Cartons

It is true that some amount of protection is required to save the goods from damage during shipping and transportation but you should not go overboard in packaging support. Use only what is absolutely necessary and that will reduce the total weight and load and will cost you less.

Also converse with the shipping provider and try to understand the safety measures he will use while transporting and shipping your products and thus you will get a clear picture as to how much you need to spend on packaging as packaging accounts of 10 percent of the overall supply chain costs.

Consolodation Of Goods

This is a very crucial factor in saving a lot of money and time and resources for the business. Huge chunks of shipments should be consolidated together and that can be done in one country or location. It is much more reasonable than consolidating goods separately in different countries.

With the help of consolidation the business can actually save almost 25 percent of the costs and thus it makes complete sense for the business to consolidate the costs in one country rather than in different locations.

Load Board Utilisation

This is a very effective and an efficient strategy which is mutually beneficial and also leads to a lot of saving of costs.

If in case you have a one time shipment to a particular location and you can ask the carrier to take your consignment as a backhaul and this way you will be charged a lot less than regularly and also the carrier will benefit as he will be able to use his transport resources to the optimum.

Thus this is a win win proposition for both the business and the carrier. This will definitely lead to a lot of savings for the business and the savings can then be passed on to the end customer who will experience delight and become a loyal customer.

Ship On Low Traffic Days

This strategy makes complete and absolute sense. There are always low traffic days like Fridays and Mondays and by going for shipping on these days the business can save on a lot of transportation and shipping costs.

The business is there to generate profit and that will happen only if the costs are reduced and controlled and the margins are extended and ultimately the customer should be delighted to become loyal and refer the services to other customers as well.

By shipping the products on low traffic days, especially if the products are non perishable good then the business can save a lot of money and resources and pass on the savings to the customers who will experience delight and become a loyal customer and a fan of the brand.

Win Win Arrangement With The Carrier

By focusing on a long term and win-win arrangement with the carrier both the business and the carrier will benefit in the long run. The business will generate business for the carrier and by offering discounts to the business the business will always choose the same carrier and thus this will be a fantastic relationship where the business and the carrier both will benefit.

Also the savings can then be passed on to the customer who will experience delight and will display loyalty towards the business.

Compare Tariffs

It is also important to compare tariffs of different carriers and go for the carrier which provides value for money and fair prices. It makes complete sense to compare tariffs as when you save money on shipping you can pass on the savings to the customer whose expectations will be exceeded and he will become a lifetime loyal customer. By saving money the business is able to cut costs and increase margins and also get more customers.

Conclusion

Thus by using all the above mentioned strategies the business can save a lot of money and can then pass on the saving to the end customer to drive delight as they say that money saved is money earned and that is definitely the case when business save money on shipping and transport.

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