Shippers often believe that the manner they ship freight is set in stone and cannot be changed. However, just because "it has always been this way" doesn't mean you shouldn't question it.
Businesses that deal with inventory realize that freight costs are unpredictable since they are influenced by a range of economic factors such as labour wages, fuel prices, government tax, regulation policies, and so on. But with the right strategy, you can save up to 50% on your usual business’s freight costs.
Here are 6 tips for lowering freight expenses, along with an estimate of how much money you could save.
6 useful tips to reduce freight logistics costs
1. Good packaging
Although packaging accounts for the smallest cost category, it is yet the most convenient and effective technique to cut freight expenses to a significant level. Rethinking the way you pack your goods while also reducing empty spaces can help you save a lot of money on freight. Packaging has a significant impact on overall freight costs, so designing cartons that assist reduce dead areas and boosting freight cost efficiency makes sense.
2. Off-peak days shipping
For shippers of non-consumer goods, shipping off-peak is an excellent alternative. Delivering a day earlier or later can result in significant cost savings. Because most customers attempt to get their product to the store by Thursday, it can be stored on Friday and made available for sale at the weekend. Friday is often an off-peak day for delivering consumer products. Mondays are also often low-volume days for transporters seeking freight.
3. Ship in bulk
When compared to shipping in several or smaller consignments, shipping in bulk accrues lower inventory carrying expenses. Shipping 6 boxes at once save a lot of money compared to shipping 2 boxes every two days. Hence, shippers who choose bulk shipments save money and time since carriers do not have to load, process, or unload as many goods as smaller shipments do.
4. Increase the lead time for deliveries
When you can bring planning into the supply chain and maximize the amount of advance warning to the transporter about future loads, you can maximize resources such as trucks, drivers, and warehouse space. Simply put, an advance shipping notice helps a carrier to align its assets and resources.
One of the most expensive expenses for carriers is paying for a trailer to remain idle at someone's facility, waiting to be loaded. But better planning can help carriers save costs and also pass a part of those savings on to you. Pick-up, preparation, and live loading can all be enhanced with better planning.
5. Sending shipments in groups
Consolidated shipments are made up of several smaller shipments from different vendors that all have the same destination. Such shipments are the most cost-effective mode of freight transportation because they utilise all of a vehicle's space and leave no empty space.
6. Technology Adoption
Shifting your freight operations to an online platform is the most effective approach to keep track of your freight costs and lower them by making data-driven decisions. Shippers will always have access to data that will assist them to identify poor shipment performance and associated costs using modern inventory management software.
To keep a record of your finances and freight cost allocation, the majority of logistics companies are turning to automation and digitization. DHL Express is a one-stop solution for all your logistics and supply chain needs. DHL provides effective data points to help you rethink your business tactics, right from order planning to providing an accurate invoice and final delivery.
This is a sponsored post.
