Article by Sharon R. Barstow
In a general sense, freight is the cost of moving goods from one place to another. It includes the entire cost of the move, from packaging, documentation, carriage costs, insurance costs and container or pallet costs. The more your business relies on the delivery of goods and services, the more it will benefit from reducing freight costs. Knowing that you need to lower freight costs is one thing — the challenge is figuring out a way to actually make it happen.
Rate Shop
The first and most obvious step is to shop around for the best freight rates. There are many different carriers available–some are national and some are local. It may be tempting to use the same carrier or delivery method to avoid hassles, but it may also be more costly. You will need to prioritize what’s most important before shopping for rates. Different carriers have different strengths and may be able to offer a lower price.
Express Only When Necessary
Only use express delivery if it is necessary. If a percentage of the shipment is needed immediately, ship that portion immediately and the other portion at a later date. Different carriers also have different pricing zones, so you may be spending more for express delivery with one carrier than you are with another. You can also save money by making sure all carriers can accept packages with additional oversize or dimension surcharges. FedEx, United Parcel Service and the United States Postal Service have dimensional weight, or DIM, and oversize charges.
Reward And Loyalty Programs
The more you can use reward cards the better. Some freight companies provide loyalty programs that offer a certain percentage of savings. You may also be able to earn miles or cash. Some companies offer additional rewards from processing packages electronically. You can also ask for group or volume discounts through trade memberships with major freight companies and professional associations.
Freight Brokers And Billing Accuracy
Use the Internet to shop for freight broker systems that can help to find the best deals online. You can use an online freight broker system such as FreightQuote.com or FreightCenter.com; both can help to find the best deals on shipments. Another area online brokers may be able to help you with is finding a lower cost on freight supplies, especially if you’re shipping in volume. Finally, watch for billing errors and audit your invoices regularly for accuracy.
Original Source: https://smallbusiness.chron.com/reduce-freight-costs-76552.html