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Reduce freight forwarding expenses

Price is a very important factor for most people. For businesses that deal in large quantities of inventory, transportation costs can have an important impact on profitability­­. Reducing logistics costs is often the number one priority for a businesses’ bottom line. Shoppers can cut those costs through smart planning. If your company does not send hundreds of packages on the day, then your company is likely to be known as a small business. Regardless of what your business is, examining several methods for the delivery of goods will reduce your shipping costs and also save you time. Implementing these practices is a very smart choice that can reduce freight costs by as much as 50%. Several of them are as simple as conducting freight pickups during off-peak hours. Read this article to reduce freight forwarding expenses.

 

Consider Freight Consolidation

Enlist the help of your local Chamber of Commerce or other local business governments to find a suitable co-shipping spouse business. Consolidating loads can keep to 25% of your freight costs.

 

Check shipping costs

To minimize and reduce shipping costs, you need to find a transport service with the lowest possible cost. Shipping costs are determined by the following factors:

  • Delivery time
  • Warehouse distance or closure location to customer’s address
  • Product weight and packaging
  • Closed dimensions
  • Insurance
  • Package tracking and delivery confirmation

 

Ship during off-peak periods

Reduce freight forwarding expenses: Shipping on off-peak days could be a perfect option for the shippers of non-consumer type products.

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Lightweight packaging

Considering that pack weight is affected by shipping costs, it is recommended to use the lightest packaging materials such as bubble sheets, old paper, in order to reduce transportation costs.

 

Reduce freight forwarding expenses: Safe delivery package

If the package contains corrosive or brittle material, then you need to pay more for guaranteeing the safe delivery of the goods.

 

International shipping costs

Transportation costs overseas are different depending on the tax paid by each country. But it can be said that the cost of transportation abroad is more than domestic. Therefore, in order to avoid any problems, it is recommended to check the conditions of the destination country and to accurately receive the shipping cost from the customer.

 

Reduced shipping failed

Regarding the principle that unsuccessful delivery of goods requires additional effort and costs for re-delivery of goods, it is recommended to reduce the likelihood of unsuccessful shipments by controlling and managing the delivery process as much as possible.

Reduce freight forwarding expenses

Reduce freight forwarding expenses: Cargo insurance

Logistics planning and cost saving strategies do not mean that you do not injure yourself. In order to avoid any incident, the amount sent by your company must be insured so that the insurance will fully cover the value of your products.

 

Optimal use of resources

Lack of proper use of company assets, such as low-cost vehicles, facilities or inventory, directly affects your income. By optimizing the company’s assets, it can significantly improve business performance. Companies can create an accurate schedule for each vehicle and its delivery times throughout the day. Also, parts of the warehouse can be rented out even in certain seasons in case of unused parts.

 

Planning accurately

Reduce freight forwarding expenses: The exact planning of operations, such as production schedules, transportation routes and time of shipment (from the time of delivery to delivery) is necessary. Significantly, the hasty decisions at the last minute heavily delay the delivery of goods and create a bad image of the company for customers.

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