Lack of the decision making, lack of planning and poor visibility in transportation or logistics may make the company to overpay, incur damaged goods, miss their delivery target and miss valuable business opportunities.
There are always great ways you can enjoy great trucking rates, enhance the efficiency, reduce risk and get to significant reduction of costs. When a business, regardless of the size manages the shipping and transportation costs in effective way, it will improve their financial performance. Reduced costs in the transportation lead to the saving that will trickle down at the bottom line. This is because the transportation mostly requires bringing finished goods, components and supplies in the company and to deliver goods to the customers and whenever it is possible to save, then such money is considered as profits.
The following are some tips on how it is possible to save on shipping and transportation costs:
- Get a third party logistic company: when you wish to reduce the costs in transportation but you do not have such expertise in your house, then consider using 3PL. They will save you money through determining the mode of transportation and the carrier that it is best for every shipment. Hiring a logistics company benefits the company regardless of its size. A business gets a partner who is capable to focus on transportation management and logistics in the manner that it is not possible for the company to do with its staff. A logistics company will offer value in many ways. You will have strong handle at the marketplace. Logistics Company understands how they can optimize the freight of their customers through laying it out in the way that freight transportation is timely and more efficient.
- It can leverage different carriers. Since logistics companies have relationship with many transportation companies, they are able to arrange for the companies to get the right deal on your transportation. These companies understand everything about the tracking of the items. When good technology platform is used, it will give secure access, ability of tracking cargo, submit queries and total visibility. They offer flexibility since you can use only the part of services that you only need.
- Talk about your shipping needs with the transportation company. Talk to the carrier and match out their fees and services to your own shipment requirements. Discuss with them how faster you wish that the delivery will take place and identify which type of transportation the company has. In this way, you will come up with the plan which is most affordable.
- Consolidate shipment: you can pay great trucking rates if you bring together shipment in a strategically way. If you do not have full shipment, then consider the company that offers a freight consolidation service. They combine many shipments from more than just one company that require going to one destination.
- Be realistic and use the service you need: when a customer needs to get the item in 3 days, there is no need to pay extra for one day shipment.