Keeping an eye on expenditures is an important aspect in every business venture. One crucial expense that needs to be considered is the cost of shipping. When it comes to shipping rates cheaper is not necessarily better in all circumstances. It is best that your company, no matter how big or small creates an entire plan of action when it comes to shipping. Your shipping strategy should combine a plan that offers comparable rates along with exceptional service in turn saving the company money and increasing client morale.
Creating an overall shipping strategy is difficult for some companies. Smaller companies often have inexperienced staff member handling the transportation and logistics matters for the entire operation. This happens a lot in companies where members of the work force are forced to handle a variety of job duties. If this describes your company it may be time to start following the strategies below.
- Make use of LTL shipping: When your shipments are consistently less than ten thousand pounds and time is not of the essence you can save money by shipping less than a full truckload. Less than truckload shipping is less expensive than waiting to have a full truck. LTL shippers combine freight from a variety of shippers and consolidate the shipments.
- Combine shipments into one full truckload: This is the opposite of what is proposed above. If you find that too many shipments are being sent you may decide that it is in your company’s best interest to combine shipments into one full truckload.
- Use a combination of shipping methods: Intermodal shipping is when companies use two different methods for your company. You may decide to combine common shipping methods such as air and rail. If time doesn’t matter this way to ship often saves a great deal of money for your company.
- Understand your geography: It is possible that you are paying for shipping services you don’t need. For instance, if you are shipping within the same state there is no need to pay for three day service. Ground service, in the same state, will get your package where it needs to go at the same time as paying extra for the three day service.
- Outsource shipping company freight: Outsourcing freight is one of the easiest ways to help save your company money on shipping freight. Freight shippers can leverage rates with other carriers and shippers to get the best price for shipping. Combining shipments with other shippers allows carriers to move your products quickly while providing shipping services at affordable prices.