Companies all over the world are striving every day for new ways of saving a few dollars on all aspects of their business.
Whether it’s keeping the manufacturing costs to a minimum or outsourcing certain departments of their business, they always have a few tricks up their sleeve.
One of the most often overlooked portions of any business are the costs associated with freight shipping. Everyone looks at the charges of manufacturing and production, but no one bothers to look at the distribution…until now!
Here are several things you should consider the next time you’re looking to save on your freight shipping costs.
1. Take Advantage of Off-Peak Days
Did you know that waiting to have your freight shipped out on a different day of the week can lower your costs?
Typically, stores want to ship their goods on a Tuesday or Wednesday in order to have the truck full of products arrive by Thursday. Having the product by Thursday promises they’ll be on the shelves by Friday in time for the weekend rush.
If your business isn’t relying on stocked shelves for the weekend then you can save big time by shipping before or after the peak days (Tuesday and Wednesday).
Even if you are a store that needs to be replenished before the weekend rush, shipping on Monday, rather than a day later, can help you cut significant costs.
Now from an LTL Perspective, towards the end of the month, carriers also take-on an overwhelming amount of freight. Certain lanes get congested, resulting in possible delays. Original delivery dates may be pushed back. There is also greater chance of a carrier missing a pickup. Moving your shipments out before the last few days of the month will help dramatically, and keep those transit times as advertised.
2. Use a Trusted Third Party
One of the best ways to get more bang for your buck is by finding a trusted transportation systems company to handle your freight shipping for you.
Your company needs someone that it can rely on to provide fast and easy service, getting your products to-and-from whenever and wherever you need it.
Third parties offer premium results through expedited freight shipping to meet your demand of being on-time or even those that are behind schedule. Few others can offer you the lowest prices and the best service.
If you’re looking to take the load off (pun intended) and have one less thing to worry about, then hiring a third party freight service is the way to go!
3. Build Relationships
The modern world has taught people that the easiest way to find the lowest rates is by shopping online like a maniac until you find the lowest quote.
There are a few things wrong with that theory: 1) the rates online may not be the rate you qualify for and 2) you’ll be jumping from service to service without building any form of partnership.
Keep it old-fashioned and build relationships with the carrier services that you work with. If they’re opposed to the idea of relationship-building, they aren’t a company you’d want to work with long-haul.
4. Save the Records of Your Item Specs
Nothing’s more important in freight shipping that making sure your products stay true to the weight and dimensions they were invoiced at.
Sometimes a carrier will reweigh your items and try to charge additional fees for the weight or size they see it at.
To avoid this, keep a record of the specifications you receive from manufacturers and those you’ve purchased from to make your case. Not having these charges set you back will help you keep costs to a minimum as well.
5. Consolidate, Consolidate, Consolidate!
Any time you see an opportunity to lower the number of shipments in favor of maximizing all your pallets into one, do so.
It’s like back in the day when your mom or dad would pack up the car trunk for a trip until there was no more space left so they wouldn’t have to make a second trip.
The same thing applies for your freight shipping. If you have a half-full truck going out Monday, stuff it full of things that were waiting to be shipped on Thursday. It’ll save you significantly to plan ahead and lower the shipments.
As with many other scenarios in the business world, consolidation can unlock massive potential for your company.
6. Build a Reputation
Have you ever heard the saying “your reputation proceeds you”? Turns out, your reputation for loading a shipment quickly can help you save on costs.
This all goes back to the point of building relationships. A freight carrier may offer you a lower rate if they know you’ll take less time and man-power to load up.
As with anything else, carriers anticipate a certain length of time for loading up in their costs. If your typical loading time falls under that average, you could save on total cost.
7. Keep a Flexible Schedule
Not only are there peak and off-peak days to consider, but you also need to be factoring in the time of day you’re requesting a pick-up or drop-off.
This is a good thing considering you can save a lot of money if you’re more flexible when the carrier is available.
If you’re insistent that your shipping occurs midday, you may get charged more due to conflicting schedules with another client of the carrier. However, a night shipment (per se) would be much cheaper and save you substantially over time.
8. Get the Freight Class in Writing
Freight classes are constantly changing, which means your rates will change with it.
As carriers move away from certain codes and segmenting, their methods and definitions for a freight class changes as well.
Make sure to ask what the freight class is every month or two and get it documented whenever it changes.
Lower Your Freight Shipping Costs Today!
Now that you’ve seen the numerous ways to cut down freight shipping costs, it’s time to find a trusted freight shipping service to build a relationship with.
Be sure to check out this article on third party logistics for more info on our processes and how it works.
For any other inquiries, please reach out via our contact us page and we’ll be happy to assist you further!