8 Strategies to Reduce Your Freight Cost

01 January 2020       Blog

It is important to keep a close eye on your freight expenses. Freight charges don’t just affect your business expenses, it also affects your customers. If your product or freight charges become too expensive, you will lose customers or they will become unsatisfied with your services and will start to look for alternative solutions to replace your product.

Here are a few strategies that might help keep your freight cost as low as possible so you can keep your prices low and your customers satisfied;

Use a Freight Company

Using a freight company like Freight People is much more affordable than handling your own logistics. You save money on transportation, salaries, office equipment and much more because there is no need to hire someone for freight management and there is no need to invest in vans or trucks for your company.

Reconsider Your Transportation Mode

Some modes of transport, like flight, are much more expensive than others. Yes, it is faster but it is hardly ever worth the extra rate. Reconsider the mode of transport you use or consider using hybrid transportation to get your costs reduced.

Consolidate Your Freights

By allowing consolidation your freight will be combined with the freights of other suppliers and you can save lots of money. It is much more affordable for a single truck to make its way down Australia’s coastline than it is for multiple minivans to travel up and down various supply chains.

Reconsider Your Insurance

Many companies frequently consider cutting back on insurance but this isn’t the best solution for getting your freight costs reduced. Insurance companies just don’t charge that much and the risk of getting your entire shipment lost in an accident is just too high. You certainly won’t save money if you cut insurance and lose your products. You can, however, reconsider your insurance company to see if you can find someone with lower rates.

Don’t Use Express Shipping

Express shipping is a lot more expensive than regular shipping. Don’t wait until the last possible moment to contact your freight company. Normal shipping rates are a lot lower than overnight deliveries and it is definitely worth the extra wait.

Reconsider Your Packaging

Beautiful packaging is important because it makes your business look professional and promotes your brand. But packaging materials are incredibly expensive. A good way to save money, in the long run, is by getting your packaging redesigned. Ask your graphic designer to develop packaging solutions that don’t take as much ink, that fits your product tighter or that looks great despite using raw materials. You will be surprised at how much money you can save on smarter packaging solutions.

Backhaul Your Shipments

Backhauling is a strategy used by most freight companies. Basically, the truck used to ship goods will now be used to deliver the goods of other companies located at delivery points in order to save money. For this technique to work, you will need quite a few contacts or a very vast network. Freight People already has an extensive network in place and this established network is exactly what enable us to provide the lowest shipping rates possible.

Send Bigger Shipments More Infrequently

One big shipment once a month will be much more affordable than sending lots of small shipments every week or two. Try to get your deliveries scheduled so you can save money.

At Freight People we use all the best strategies to keep your costs as low as possible and we bill each and every customer individually so you only end up paying for what you use. The best way to save money is by using an established freight company like ours.