If you’re shipping products on the regular, you probably already know how beneficial it would be to cut your freight costs, even if only by a little bit. Over time, small price reductions turn into big savings. When you work with freight audit companies to assess your financials, you will understand exactly how much these reductions will benefit your savings.
There are plenty of freight cost reduction ideas that can help to save yourself some money. Here are the six best freight cost reduction ideas that you can implement right away:
Idea #1: Change packaging to reduce freight cost
A lot of freight costs are based on the weight of a product. If you can optimize the type of packaging you use for your product, this can be one of the most significant freight cost reduction ideas. Both the primary packaging and the packaging used to ship the products can be examined for savings.
You need to make sure the new packaging isn’t too much more expensive. Even if it is lighter, it might not be enough to make it worth it for you. Also, make sure the packaging is still doing its job. If you opt for something that is lighter, but then your product is being damaged in transit, you’re going to lose a lot more money in lost product, which will ultimately increase your costs.
Idea #2: Use creative packing to reduce freight cost
Make sure you’re packing your products in the most efficient way possible for shipping. You’ll likely be paying for the space you use for your shipment. The more product you can fit in less space, the better.
Just be careful that you aren’t damaging your products in the meantime. While you want to keep your shipments as small as possible, make sure your products have the room they need, so they don’t get damaged in transit.
Idea #3: Decrease the frequency of freight
It is better to send bigger shipments less frequently rather than sending several smaller shipments. If you can put your shipments all together on a less frequent basis, you’ll be saving yourself some money. The other option is to see if you can partner up with another business who has to send smaller shipments as well. Combining your loads to make one big one is a great way to economize on freight costs.
If you are using freight services for perishable food items, this is probably not going to work for you. As well, you have to make sure that there is somewhere for those products to be stored. If they aren’t all going to make it on the shelf right away, storage is going to be needed. You will also have the same issue on your end – you need to have storage space while you stock up products and wait for them to be sent out.
Idea #4: Make an agreement with your freight provider
Solidifying an agreement can be a lucrative freight cost reduction idea. If you can discuss with the company you are using that you will be using exclusively their services, or that you will be using their services on a consistent basis, you may be able to work out a deal. This can help you reduce your costs, and also not have to worry about the logistics surrounding your shipping, as they will already have been organized.
Just be sure that you aren’t causing yourself further hassle, and that you trust the agreement will be maintained by the other party. If you can’t hold up your end of the bargain, you’re going to burn your bridges. Be open and communicative about your needs, so that you can keep the freight service provider in your good books.
Idea #5: Make strong connections with your freight provider
That brings us to the next point: make strong relationships with your freight service provider. Don’t jump around from place to place. You may get a reputation as being flaky, and while it is unlikely that you will be refused services, you won’t have anybody banging at your door to offer you any favours.
While it is a great freight cost reduction idea to develop these strong relationships, it does also mean that you may be missing out on a better price somewhere that you aren’t able to take advantage of. If this is the case, you may consider switching, but do it once and strengthen that relationship instead of jumping around
Idea #6: Ship during quiet times
Some days of the week and some times of the year are considered peak shipping times. If you can help it, a good freight cost reduction idea is to ship outside of these times. It will likely cost you less, in fact, the freight service company may even be searching for loads to fill in a trip they have to make. This could be advantageous for you.
Peak times are peak times for a reason – they are when everybody wants to send shipments. This means it is probably when you want to send your shipments as well. As such, this tip may cause you a little more hassle. Make sure it isn’t causing you more stress than it’s worth.