Cutting your freight rates in any way possible is a great way to save money for your shipping business. But how to go about it?
Here are five simple ways you can look after the pennies (so the pounds look after themselves).
#1 – Longer Leads
Shipping in a hurry limits your options. Have you experienced this before?
When you get stuck and need to send something last minute, air freight might end up being your only option to get your goods to their destination on time. And air freight, while fast, is generally more expensive than sea freight.
Prep and planning goes a long way, and it can save you a lot of money to get ahead of the game. If you can work in extra planning through great communication with your supply chain, letting everyone know way ahead of time what to expect in the months to come, you’re far more likely to get the containers, trucks, drivers and warehouse space you need when you need it.
At a reasonable price.
This is because the more notice a carrier has, the more time they have to get these resources in place. So they can quote you less, and by managing your customers’ expectations with longer delivery timeframes, the easier (and cheaper) it is to satisfy them, too.
Increasing delivery lead times also means you can consider intermodal shipping, which is often much kinder to the purse strings. Intermodal shipping, where you combine more than one method of moving goods, can also be a greener way to get your goods from A to B.
#2 – Reduce Packing Materials
Ever come across the word dunnage? Well, too much of it might be costing you a fortune.
Dunnage is the term used for things like strapping, air bags and bracing that are used to stop your goods from bashing against each other during transit. A lot of shippers err on the side of caution and go a little overboard, meaning they’re spending money on excess dunnage unnecessarily.
To combat this, see if you can reduce how much you use. Professional carriers will be able to help you work out what is too much and too little. The focus is on strategic packing that will reduce your cargo’s weight and volume, getting you cheaper shipping rates.
#3 – Ship More, Less
If you can get your customers to buy more at a time, you’ll save money. Why? Because larger orders are cheaper to ship than small orders in the long run.
It’s true, you’ll have to fork out more initially to buy enough space for all those pallets, but as you’ll be shipping less frequently, you’ll quickly see the savings.
If you’re planning on working this tip into your customer care strategy, perhaps with an incentive to bulk buy, remember to factor in warehousing costs first to make sure they don’t eat away at your forecasted savings.
#4 – Get Quotes For Comparison
And finally, one of the best ways to save money on your freight is to shop around. Get comparison quotes. Just because your existing freight forwarding company was competitive when you first started working with them, doesn’t mean they can still give you the best bang for your buck today. So shop around, get multiple quotes and see what rates are available out there. At Millennium Cargo we offer a FREE FREIGHT AUDIT so you can see just how much you could save.
Saving Money Isn’t As Hard As You Think (And It All Makes A Difference)
How did these tips sit for you? They’re strategies you can think about actioning immediately, and this means you’ll start to see the benefits sooner rather than later.
A great freight forwarder will do all they can to get you the best rate, so always make sure you pick up the phone and ask for their expert advice. Contact Millennium today for a free freight audit and discover more ways to save money on your freight.