Cost-Effective Logistics Solutions
Logistics is an expensive industry, but you don’t have to let your budget suffer due to high production and transportation costs. Learn some cost-effective logistics solutions and discover how you can save with FreightCenter!
Cost-Effective Logistics Solutions
Freight shipping is known for being an expensive venture for businesses. $2.4 trillion was spent on the logistics industry in the U.S. in 2023, fluctuating depending on economic conditions. Given the complexity of logistics, it’s no surprise that shipping costs can become so high.
To streamline and enhance your supply chain operations, you may be exploring various strategies to reduce your logistical expenses. However, given the many components of your operations, it can be difficult to decide where to begin making reductions.
As a third-party logistics provider, FreightCenter has found many ways to help our customers reduce their transportation and logistics expenses. That’s why we’ve compiled a list of cost-effective logistics solutions that not only ease your budgetary spending but also can streamline your operations and increase productivity and efficiency.
Thousands of businesses trust FreightCenter to move their freight faster, smarter, and cheaper! From unbeatable rates to top-notch service, our customers are raving about their shipping success.
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Award-Winning Service, Trusted by Shippers Everywhere!
- 2021, 2017 & 2016 Food Logistics’ Top Green Providers
- 2021 & 2018 Supply & Demand Chain Executives’ Pros to Know: Matthew Brosious
- 2020 & 2019 Top Food Logistics’ 3PL & Cold Storage Provider Award
- 2020 & 2019 Business Observer’s Top 500 Companies on the Gulf Coast
- 2020 & 2017 SmartWay® Transport Partner
- 2020 & 2017 Food Logistics’ Champions: Rock Stars of the Supply Chain
- 2020 Best of Palm Harbor Awards for Local Businesses
- 2017 Green Supply Chain Award from Supply & Demand Chain Executive
- 2017 Tampa Bay Business Journal Heroes at Work
- 2016, 2015, & 2012 Food Logistics Top 100 Software and Technology Providers
- 2013 Tampa Bay Business 100 by Tampa Bay Business Journal
- 2013 Top 100 Great Supply Chain Partners by SupplyChainBrain
- 2012 TIA Samaritan Award Honorable Mention
- 2012, 2011 & 2010 TBBJ Fast 50 Recipient
- 2013, 2011, & 2010 Diversity Business Top Businesses
Why Choose FreightCenter for Freight Shipping?
Expertise in Freight Shipping: With over 25 years in the logistics industry, FreightCenter is dedicated to guiding you through the entire logistics process, from beginning to end. Our goal is to make freight shipping easy to understand and book. Don’t waste time researching and receiving quotes from individual carriers- FreightCenter’s got your back!
Competitive Rates with Tailored Solutions: We prioritize high-quality customer service without breaking your wallet. We utilize our relationships with regional and national carriers to offer you competitive, affordable rates while providing personalized solutions to your needs. Need a liftgate? We got you! Want to expedite your order? Leave it to us! We’re ready to provide tailored solutions that don’t compromise your freight shipment.
Personalized Customer Support: FreightCenter is committed to satisfying our customers. Our friendly customer support team is here to help you every step of the way, from initial inquiries to post-shipment concerns. We handle all aspects of logistics, including tracking, paperwork, and communication with carriers, so you can focus on your business while we manage your shipment. Choose us for our reliable service and affordable quotes!
Types of Logistics Costs
Logistics involves many sections and steps, just like the expenses needed to keep your supply chain running smoothly. These expenses include:
Warehousing: Setting up a warehouse requires a lot of moving parts. Costs include rent, storage space, lease agreements, warehouse management systems (WMS), equipment, and shipping supplies.
Inventory: Building your inventory may get expensive depending on what is in your inventory and its regular price. Costs also include procurement expenses and sales/volume discounts, as well as costs relating to losses, pilfering, and shrinkage.
Labor: Team members must be compensated fairly for their work. Costs include recruiting fees, payroll, liability and insurance, and benefits. You will also need to reimburse independent drivers and lumpers for their services.
Fulfillment: You will most likely outsource your fulfillment tasks to a third party, so you’ll need a budget for how much you’ll spend on those services. Costs also include fees for setup and pick and packing, labeling equipment, returns, and exchange losses, and account management fees.
Transportation: Arguably the most considerable expense your business incurs. Costs include buying fleets, fuel, maintenance, carrier fees, and third-party service fees for outsourcing your transportation.
These prices and fees reflect the amount of people, equipment, locations, and supplies needed for logistics to function correctly. While some of these expenses may remain predictable and stagnant as they have throughout the years, much of them have been influenced by changes in the logistics industry and the economy itself.
Several factors can affect the amount spent on logistics, including:
- Cost of fuel
- Cost of rent for warehouses and fulfillment centers
- New technologies
- International trade restrictions and customs regulations
- Delays include port arrivals, late supply deliveries, transportation holdups, etc.
- Driver payments
Top 10 Cost-Effective Logistics Solutions
Logistics may be an expensive venture, but there are ways your business can economize your freight shipping activities.
1. Review Data from Previous Shipments
Review the data from your previous shipments. Identify areas where improvements can be made to reduce costs. Collaborate with your team to develop a new budget plan that highlights specific parts of your operations where expenses can be decreased.
2. Consolidate Shipped Items
If your company ships out multiple partial truckloads at a time, it might be less expensive to use less-than-truckload (LTL) shipping instead. You will be splitting the cost of the trailer with other orders, and you can consolidate your orders into a single shipment rather than several partial truckloads.
3. Use Intermodal Shipping
Rather than relying on one mode of transportation to deliver your shipments, try intermodal shipping. For example, you can ship your goods via freight rail and then pick them up by truck. Doing so can optimize your shipping route and reduce transportation costs.
4. Reduce Abandoned Cart Syndrome
The cost of shipping can be burdensome for customers, which is why businesses look for ways to ease those costs on the customers. One way is to offer low to free shipping to customers that spend a minimum spending threshold, such as free shipping for purchases up to $100.
5. Centralize Procurement
Procurement is a vital aspect of logistics operations, but it can be difficult when your business sources materials from distant suppliers, leading to higher supply costs. By sourcing from local suppliers, you can reduce material expenses and minimize the risk of running low on inventory.
To create value for our customers by delivering customized shipping solutions that meet their unique needs and to fulfill shipping demands from simple to complex with expertise, guidance and ingenuity.
Trust the experts at FreightCenter to give you the best prices and the most comprehensive options for all your LTL freight shipping needs.>
We deliver optimized solutions for full or partial truckloads and competitive dry van, flatbed, and refrigerated freight pricing. We can cover your full truckload shipping needs.
Nationwide Expedited Trucking services move your freight securely and rapidly. Your freight requires fast delivery; our freight shipping experts can get your shipment fast, whether in one large box or a full truckload.
The most reliable Specialized Freight Services rates from all the top carriers are just a few steps away. From white glove service to international shipping, we've got you covered.
6. Utilize Nearby Warehouse Services
Similarly to the previous solution, keeping your warehousing operations near the manufacturing plant keeps costs down. You should also consider your customer’s locations; if your customers live around California but your headquarters are in New York, then consider allocating warehouse services to a 3PL or fulfillment center in California that can transport items for you.
7. Implement Automation
In recent years, warehouses and fulfillment centers have embraced automated management systems as a surefire way to increase efficiency. Other areas to consider automating are transportation (via self-driving vehicles) and order picking (using AR glasses or robots).
8. Perform Maintenance Checks
Equipment malfunctions and breakdowns ensure delays and order cancellations. To prevent this, schedule regular maintenance checks to ensure essential equipment is ready for extensive orders.
9. Focus on Customer Satisfaction
The most crucial factor to any business selling a product is the customer. When the customer is dissatisfied, remedying mistakes could get costly. Instead, prioritize fulfilling the customer’s order and delivering it to them safely and punctually.
10. Outsource Your Logistics Operations to a 3PL
Logistics can get complicated to spend on if your business is unfamiliar with it. That’s why it’s best to utilize a 3PL. They can handle all aspects of freight shipping for you, from booking to warehousing to fulfillment to transportation. However, know that some of these services don’t come cheap; do your research to find one that fits your business and budgetary needs.
Logistics may be one of the most expensive parts of your operations, but it doesn’t have to break your budget. Experiment and implement these cost-effective logistics solutions; not only will you be saving money, but you will also smooth out your supply chain, increase productivity, and make the whole process easier for yourself. It’s a win-win for your business and your entire production team!
FreightCenter has Cost-Effective Logistics Solutions for You!
One of the solutions we mentioned was relying on a 3PL for your logistics operations. While many of these 3PLs specialize in specific aspects of the supply chain, there are fewer that can assist in all of it. FreightCenter is the latter; we can make freight shipping easy for you!
We understand the importance of delivering your freight safely and on time. With over 25 years of experience in the industry, we are dedicated to providing our customers with the best shipping experience while staying within budget. We partner with more than 50 carriers nationwide, allowing us to offer exclusive discounted rates that you won’t find elsewhere.
The best part of our services is our free online quote tool. Just plug in a few tidbits about your shipment, make an account with us, and voila! You can instantly compare rates from our partnered carriers and choose your preferred provider based on the route, services, and price offered. No more endless phone calls and confusing estimates; your quotes are available all in one place, ready for you to choose and book.
We also provide customized solutions for your shipping needs, including expedited shipping, white glove services, and specialized freight shipping. Our friendly customer service team can find even more solutions for you, as well as assist with any issues or problems you come across along the way. Our repeat customers can also earn points for special rewards every time they ship with us! We make freight shipping easy, affordable, and even fun!
Ready to ship something now? Our agents are prepared to help you get started on shipping right. Get a free freight quote using our quote tool, or call us at (800) 716-7608.
Guaranteed competitive pricing every time you ship.
Frequently Asked Questions about Cost-Effective Logistics Solutions
Q. What is the most expensive element in logistics?
Transportation is the costliest aspect of logistics, primarily due to fuel and fleet prices. Truck shipping is probably the cheapest option out of the four main ways to transport your goods, but you can also decrease your transportation costs by consolidating your shipments into one and utilizing intermodal shipping to shorten travel time and cut transportation costs.
Q. Could I reduce my labor costs using automation?
Full automation has the potential to replace human workers in areas such as warehousing, fulfillment, and transportation. Automated machines and software can speed up processes that typically take longer with human labor and can catch errors that might go unnoticed until it’s too late.
However, it’s important to recognize that automation also comes with its own challenges. It can create errors and is susceptible to malfunctions or breakdowns. Additionally, your human employees may not appreciate the prospect of automation taking over their jobs. Try partial automation; this allows humans to remain a part of the logistics process while making difficult aspects easier.
Q. How does quality customer service reduce logistics costs?
A dissatisfied customer can mean lower revenue for your business, whether the customer discontinues buying your product or you have to spend money to satisfy the customer again. Keeping your customer satisfied by shipping their orders safely and punctually will prevent expensive mistakes and delays from interfering with your bottom line.
3 Advantages of Using FreightCenter for Supply Chain Optimization
25+ Years of Service
We have over 25 years of experience, as evidenced by our large network of professional carriers. Our knowledgeable team of shipping experts is ready to help you optimize your shipping experience.
Customizable Shipping Options
Need a liftgate? No problem! Need to ship your products quickly? We got you covered! Our FreightCenter agents can offer tailored solutions for your specific shipping needs while offering affordable rates you can’t find anywhere else.
Friendly Customer Support
Our customer support team has the answers to many of your shipping questions and concerns. We’re here to help you through every step of the shipping process, from initial inquiries to post-shipment issues.
