Getting more for your money with freight costs isn’t just a good idea now, it’s essential. In the unrelenting growth of business, transportation fees can be a sticking point and can sometimes feel like a leak in your finances!
Knowing exactly where your money is going for freight can show you where savings can be made. Things like rising transportation costs, carrier fees and fuel extras can all add up, eating into your carefully planned profit margins.
So what can you do to save money and keep your product moving?
This is where freight audits can help. They give you a smart method to identify inefficiencies in your transportation. And in today’s climate, every little helps, no matter the size of your business.
What Is a Freight Audit?
A freight audit is a detailed review of shipping expenses and the processes involved. This is done to ensure the absolute highest levels of accuracy and efficiency.
Freight audits allow you to:
Identify Major Costs
Where is the most money being spent in your logistics? A freight audit pinpoints where the biggest chunk of your budget is flowing to.
Find Opportunities To Save
Could better planning save you money easily? An audit shows you how strategic changes, big or small, might cut your transport spending.
Catch Errors
You might be surprised how much small errors can add up. All it takes is several billing errors, overcharges or duplicate fees a month or year – and an audit helps you find them.
The most common elements freight audits will analyse include:
- Your routes and carriers – are using the most cost effective options?
- Fuel surcharges – are you paying fuel surcharges in alignment with industry standards, or are you paying extra for no good reason?
- Hidden fees – what avoidable fees are you paying for?
Overall, a freight audit gives you the data you need to make a more streamlined plan for your transportation, making sure your operation is running smoothly and cost-effectively.
Understanding Your Spending Patterns
One of the biggest reasons to carry out freight audits is to get your spending patterns clear. In business, you know just how valuable data can be, so why not get the data on where your money is going?
Freight audits show you:
Insights Into High-Cost Routes
Not all routes are created equal. Some will lead you to rack up the highest costs, while there may be other, more efficient routes to be taken. But you won’t know which routes have higher costs without the data to analyse.
Above-Average Carrier Fees
Some carriers charge more for their services, and if you don’t get more for your money, you could save a significant amount by switching to a carrier that’s better suited to your budget and needs.
The Extra Charges
You’ll be able to see the trends in extra fees coming in, such as delay penalties, oversize charges and storage costs. Once you see them, you can discover why they’re happening in the first place.
Now you can start asking the important questions, like are there more efficient routes available to you? Should you think about switching carriers? What operational inefficiencies are causing your extra fees?
With your spending pattern data in hand, you can make informed decisions that can lead to serious cost reductions.
Saving Money Through Better Planning
You could be planning your routes better. That might be hard to accept, but freight audits won’t just show you what’s going wrong, they give you insight into how to solve the issues too.
You can plan with all the information in front of you rather than using guesstimates or second-hand information. Freight audits and better planning can help your business save money directly through:
Optimising Routes
Your freight audits will show you the routes that have consistent delays or more expensive detours. By analysing your route data, you can uncover the faster (and cheaper) alternative routes, as well as avoid peak-time routes that come with higher surcharges.
Choosing the Right Carriers
Compare carriers based on pricing, reliability and service quality. You can use your audit insights to negotiate better contracts or switch to more cost-effective providers – putting money back in your pocket.
Consolidating Shipments
Shipping multiple smaller loads can lead to higher costs. Compare that to fewer, larger shipments where you can make a saving. Freight audits help you identify exactly where you could consolidate your shipments and streamline your operations for better use of your available space.
Leveraging Technology for Freight Audits
We’re in the digital age, and you can use that to your money-saving advantage. Technology plays a critical role in freight audits.
Digital tools used in freight audits include:
- Automated Data Analysis
With software that scans invoices and shipping documents, an audit can identify your inefficiencies automatically.
- Advanced Reporting Dashboards
With visual tools, you can see trends and patterns at a glance, no need to spend weeks analysing your data manually and compiling reports.
- Real-time tracking and Insights
Get real-time updates on your shipping performance, letting you make proactive adjustments to our planning and scheduling.
Here at Millennium Cargo, we use cutting-edge technology to make our freight audits as insightful and efficient as possible for you.
Real-World Benefits of Freight Audits
Freight audits might sound technical, but they aren’t just theory. They’re a real-world solution for businesses wanting to get tangible results. Businesses that get freight audits can reap the rewards such as:
Reduced Overspending
When you identify where your money is going, you’ll see where it’s possible to reduce spending, saving you money you didn’t realise you’d been losing.
Avoiding Extras Charges
Extra costs come with late delivery penalties, storage costs due to poor scheduling and excess weight charges from improper shipment consolidation. Many of those fees are avoidable with the right data at your fingertips.
Improving Negotiations
Armed with data from your freight audits, you can enter carrier negotiations from a stronger stance, whether it’s to get lower rates, better service agreements or fees waived.
Gaining Long-term Efficiency
In the long term, freight audits give you more accurate budgeting, smoother cash flow and ultimate operational efficiency.
Why Partner with Millennium Cargo?
Freight audits can be a tricky business, but working with an experienced freight partner like Millennium Cargo means you get the most from your business.
Working with us means:
Industry expertise you can rely on – we have a deep knowledge of carriers, routes and cost structures that go beyond the basics, so we can pinpoint opportunities for savings that others may miss.
Tailored solutions – since every freight audit is customised to your business, we meet your specific shipping needs without stress or confusion.
Advanced tools – with some of the most advanced technology, we make our freight audits more accurate than ever, giving you actionable insights without delay.
At Millennium Cargo we want to help you build smarter logistics strategies, and it starts with an audit.
Think You Could Be Losing Money On Your Freight?
Freight audits help you understand where money is being spent and uncover savings through smarter logistics strategies. You may be losing money in a multitude of small ways, but it all adds up. Create a stronger freight plan for your business, and you won’t just save money, you’ll boost your entire operation.
Ready to optimise your logistics? Get in touch with Millennium Cargo today…