Online purchases and home deliveries have been increasing due to the pandemic. More and more people choose to stay home, purchase their products online, and have these items safely delivered to their doorstep. Because of this, some freight carriers are noticing an increase in their freight costs, which could significantly affect their sales.
Some carriers make the common mistake of thinking that freight costs are fixed and can’t be negotiated. These mistakes make many companies lose out on potential savings. However, it’s good to know that some companies are aware of this and are starting to find ways to operate more efficiently to reduce costs.
There are many ways to reduce your freight expenses to help your business operate. Most are smart and straightforward changes that can reduce costs to up to 50%. If you’re looking for ways to reduce your freight costs, here are a few tips that you might want to remember:
1. Consider combining different packages for transport
A cost-effective and time-efficient way to transport products is by consolidating products from different suppliers. This means combining shipments from nearby companies to typical retailers, which is an excellent resolution for lowering your freight costs.
Encourage your customers to ship in bulk and have less frequent delivery times. It is cheaper to ship packages once a week than multiple times a week. When you encourage your customers to fix their delivery time and quantity and work with a third-party warehouse, it may save you about 25% of your freight costs.
Another idea you should know is that you can ask for assistance from your local Chamber of Commerce or other local organizations. They can help you find a proper co-shipping partner. This way, you’ll combine various companies’ packages into a full container or truck to reduce freight costs.
2. Assess your mode of transportation for every shipment that goes out
Another practical tip freight carriers do is considering what transportation mode you’ll use to ship out packages.
Sea freight transportation is a much cheaper option than air transportation, which is beneficial for international shipping. However, you should know that with sea freight transportation, the delivery may be slower. Meanwhile, rail delivery is more convenient and efficient for localized freight.
Another tip is to consider alternating from different modes of transportation or combining multiple ways. This will help you cut a ton of your freight expenses.
3. Plan and create an efficient delivery timeline and system
Many don’t know that a considerable amount of your freight costs come from which day you decide to have your shipments delivered. Considering off-peak days and choosing hours of the day where it is much slower can help lead you to a remarkable reduction of costs.
If you have non-perishable goods, this is the perfect option for you to help decrease your freight costs. It’s good to know that Mondays and Fridays are considered off-peak days. Another thing to consider is shipping time. Off-peak shipping time windows are from six in the evening until midnight.
When you consider the day and time of shipping, you may save up to 10% of your freight costs.
Conclusion
It is time to forget the common idea that freight costs are fixed and can’t be negotiated. By following these tips, you will be able to reduce your freight expenses by a considerable amount. It’s good to know that with proper planning, you’ll be able to have better freight operations and also get to reduce your freight costs.
RJS Logistics is a company of freight carriers in Monroe offering professional services in shipping and logistics. We take pride in our on-time deliveries, whether early in the morning or late at night, seven days a week. We are ready to accommodate you with your needs. Give us a call today!
