10 Ways Of Reducing Freight Costs for Enterprises
High logistics expenses can negatively impact businesses. Use FreightCenter’s tips for reducing freight costs for enterprises to lower your spending and optimize your supply chain.
Cut Freight Costs with Proven Solutions
In 2023, it is widely recognized that the logistics industry ranks among the most expensive sectors in the world, with $2.4 trillion spent in the U.S. Current economic conditions like inflation may have increased spending, which can make or break an enterprise.
Delivering your goods to your customers effectively is essential for a productive business. To make that happen, you will need a top-of-the-line supply chain and be willing to spend a substantial amount of your budget on the proper equipment, facilities, technology, and labor.
Logistics can be costly, but there are ways to be budget-conscious. Regardless of your company’s size, you can find numerous strategies to reduce your logistics expenses. FreightCenter provides valuable tips for reducing freight costs for enterprises, helping to alleviate the financial stress associated with logistics.
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Why Choose FreightCenter for Reducing Freight Costs for Enterprises?
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!
10 Tips for Reducing Freight Costs for Enterprises
Review Current Spending with a Freight Bill Audit
Freight bill audits are practical tools for gathering insights into your logistics operations, including the types of freight shipping you utilize. By reviewing your past freight bills, you can identify your shipping patterns, annual costs per shipment, carrier performance, and opportunities to reduce your spending.
Additionally, you can discover significant errors in your freight bills, such as clerical mistakes, discrepancies between quoted and billed rates, incorrect product classifications, duplicate payments, and unnecessary accessorial charges. This process allows you to file claims and disputes with your carriers and brokers, helping you avoid financial penalties in the future.
Ship During Off-Peak Times
The days when freight shipping volumes are at their peak are during the middle of the week (Tuesday through Thursday) between 6 AM and 5 PM. These hours are the most convenient for businesses as they fall within regular business hours, but they are also the most expensive times to book.
What if you tried shipping during off-peak hours instead? By scheduling a shipment during off-peak hours, you can lower your shipping rates than if you book during high-volume times. Some carriers may restrict freight pick-up or delivery times, however, so it is essential to discuss the best delivery times with a logistics expert.
Consolidate your Freight Shipments
Say you ship your freight via multiple shipments at a time. For example, shoe manufacturers may ship half a pallet of sneakers in one shipment and half a pallet of high heels in another. While this helps keep differently classified items separate from each other, it can also rack up shipping expenses.
Consider consolidating your shipments to limit the number being shipped. One way to do this is to contact your Chamber of Commerce to connect you with similar businesses. By working together, businesses can ship things like inbound supplies and necessities without paying a large amount for individual shipping.
Select The Right Shipping and Transportation Mode For Your Freight
The cheapest option for freight shipping has always been LTL, while the most affordable transportation mode has been trucking. However, enterprises know that shipping freight via LTL trucking isn’t always an option. You can’t send a truck overseas to deliver a shipment from the US to Germany, for example.
Enterprises mustn’t sacrifice quality freight shipping for financial ease. If you have large shipments that do not fill an entire trailer, then consider LTL shipping. If the amount of shipments you ship requires a whole trailer, then full truckload shipping is right for you. The least expensive shipping option for your enterprise is the one that doesn’t require compromising on effective logistics.
Avoid Expedited Shipping If it is Unnecessary
While expediting your shipment guarantees your freight will arrive at its destination early or on time, it is also costlier than regular freight shipping. As the carrier needs to upheave any previous commitments and use available resources to fulfill a rushed shipment, that is only to be expected.
That is why expedited shipping should only be treated as a last resort for non-essential products. If you are in an industry with time-sensitive products, like food and pharmaceuticals, then speak to your logistics provider about cold chain shipping, as this type of shipping preserves refrigerated products while delivering quickly and efficiently.
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Why are Freight Costs so Expensive?
Logistics is known for being a costly venture, but why is it so expensive? A lot of it has to do with the current economy, as they go hand in hand. If the economy is doing well, the logistics industry is doing splendidly, and vice versa.
With inflation currently plaguing all industries, the prices for goods and services are already up so high. This, in turn, affects logistics prices, as freight companies raise their prices to make a profit. High interest rates and potential tariffs on Chinese and other international products are also affecting freight shipping rates.
Aside from the economy, other reasons why freight costs can be so exuberant include:
- Fuel costs
- Add-on services and equipment
- Travel expenses for drivers
- Delay and cancellation fees
- Accessorial fees
While some of these costs are inevitable and cannot be avoided, others can be remedied using an effective cost-cutting strategy. Although devising a plan can be difficult due to the economy’s uncertainties, businesses can reduce freight expenses and optimize their supply chain operations with the help of our cost-cutting suggestions.
Frequently Asked Questions about Reducing Freight Costs For Enterprises
Q. Why is freight shipping so expensive?
The logistics industry involves numerous components, including personnel, facilities, technology, equipment, and transportation. To ensure the smooth and efficient movement of goods, it is essential to have high-quality assets that can transport freight quickly and safely. However, maintaining these operations can be expensive, particularly due to transportation costs, which often include fuel surcharges.
Q. Are there any green shipping strategies that also save money?
Sustainability has become an important topic in logistics, an industry that is often seen as traditional and has a significant impact on the environment. By using fuel-efficient carriers, optimizing routes to minimize travel distance, and consolidating shipments, companies can decrease both emissions and fuel costs. This approach benefits the environment and leads to financial savings for businesses, creating a win-win situation.
Q. How can enterprises take advantage of freight market trends to save money?
Reducing freight costs for enterprises means learning about the current economic status of both the logistics industry but other sectors as well. By analyzing market data, companies can identify peak and off-peak shipping periods, secure contracts during times of lower demand, and adjust shipping schedules to take advantage of cost-saving opportunities.
Q. Should enterprises focus on regional or national carriers to save costs?
It depends on your shipping needs. Regional carriers usually offer lower rates and specialized services for local routes, while national carriers provide broader coverage and greater scalability. Combining both can lead to significant cost savings, reducing freight costs for enterprises.
3 Advantages of Using FreightCenter for Reducing Freight Costs For Enterprises
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.