How Manufacturers Can Reduce Freight Costs

How Manufacturers Can Reduce Freight Costs
  • Opening Intro -

    Cutting costs is a great move for manufacturers, but you shouldn’t cut costs by sacrificing your operation's quality or integrity.

    Luckily, manufacturers can minimize factors like freight costs without sacrificing their reliability.

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These three methods below will show you how manufacturers can reduce freight costs with ease and success.

Always Simplify Shipments

The more shipments you send, the more you’ll have to pay carriers. Luckily, manufacturers can limit those payments by consolidating shipments. Consolidating involves combining several shipments on route to the same destination.

By consolidating your shipments, you can minimize the number of shipments you send, which, in turn, can minimize your freight costs. Manufacturers can even consolidate incoming shipments, further minimizing the costs of freight transportation.

One of the best ways to utilize shipment consolidation is when you’re sending products to a transloading service.

In fact, transloading can improve shipping efficiency, thanks in no small part to how this process promotes consolidation.

Utilize Off-Peak Dates

A surprisingly large determining factor in freight costs is the day you’re shipping items. For maximum savings, consider shipping goods through carriers on off-peak dates.

This won’t always be possible depending on the goods you’re shipping, but aim for off-peak dates when applicable. Keep in mind that off-peak dates can vary, especially around certain holidays.

However, off-peak dates are typically Mondays and Fridays, while Tuesday to Thursday is usually the peak shipping window.

As with the first point on this list, utilizing off-peak dates can help manufacturers reduce freight costs for inbound and outbound shipments successfully, so keep this tip in mind for both scenarios.

Maximize Carrier Relationships

Don’t approach shipping partnerships as a shop-around-for-the-best-prices kind of situation. In other words, partner with one carrier and form a strong long-term relationship with them.

Forming a good relationship with carriers involves being friendly, respectful, communicative, and consistently forward with your shipping needs. Signing a contract with a carrier and building a strong relationship with them can open up the door for reduced shipping costs in the future.

Don’t expect those reduced costs to fall out of the sky, though. After taking some time to maintain a healthy partnership with a carrier, you can begin discussing possible deals.

If asking for deals imbues you with a feeling akin to asking an employer for your first raise, let that feeling subside. This kind of business practice is commonplace, and as long as you approach the discussion correctly, bringing up the conversation won’t result in carriers thinking of you as cheap or greedy.

Now that you see how manufacturers can reduce freight costs, consider implementing these methods into your workflow. Although building a good relationship with a carrier is a long-term money-saving tactic, methods like shipping on off-peak dates can help you see results more immediately.

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Whichever method you choose, taking full advantage of these tips can help you cut unnecessary costs in the future. Some manufacturers aren’t even aware of these methods because they think of certain costs as part of the business. The truth is that taking advantage of the tips above is easier and more integral to the industry than some manufacturers realize.

Image Credit: how manufacturers can reduce freight costs by twenty20.com

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