Lately it seems like the cost of everything is going up – and freight costs are no different. But that’s no reason to fall into the trap of doing what you’ve always done, just because you’ve always done it. With a refreshed approach to your logistics challenges, you’ll find a strategy that delivers cost-effective results for land-based freight shipping.
Strategize, Keep Moving Forward – and Save
There are several ways to effectively reduce your company’s land-based freight costs, including:
- Off-peak shipping: With a potential savings of around 10%, it’s worth looking into off-peak shipping options – especially when it means moving your schedule by only one or two days. Fridays and Mondays are often quiet, low-volume periods for consumer goods, so there’s an opportunity there for non-consumer type goods to take advantage.
- Utilize retail consolidation for smaller shipments: Unconsolidated loads cost up to 25% more, so it just makes sense to source a partner who can take your LTL load and combine it with other small loads heading to the same mass retailers and delivery points.
- Increase lead delivery times: Supply chain management is not just about delivering goods quickly, it’s about delivering them affordably. One of the biggest costs to carriers can result from short lead delivery times that don’t allow carriers and partners to optimize this process. With a longer lead delivery time, you can maximize assets like trucks, warehouse space and drivers, ensuring no trailers are sitting idle while they wait to load up. Longer lead times lead to improved behind-the-scenes efficiency, with savings of between 5-20%.
- Offer night pick-ups: If your carrier can take advantage of night pick-ups, you can save around 15-20% off standard rates. This allows the carrier to create a more flexible schedule and make your load into a backhaul, reducing potential shipping conflicts and allowing them to maximize the use of their assets on longer hauls – all of which will work in your favor in terms of savings.
- Larger loads, less frequent shipping: Like all buy-bulk-and-save deals, the same applies to your shipping costs. It’s much more cost-effective to ship one large order in a week than smaller shipments every few days – in fact, it can save you around 50% on shipping costs. Tools like vendor Managed Inventory or offering retailers a share of the freight savings are good ways to incentivize your retail partners to work with you on this strategy.
- Think about product design, packaging and carton selection: These aspects have a significant impact on your ability to optimize your shipping by minimizing protective packaging, warehousing and transportation costs. Simply by designing your packaging and carton sizes with freight efficiency in mind, you’ll be able to ship more for less – around 10% in savings.
- Build a relationship: It’s always a good idea to shop around, get that second or third quote and revisit your service contracts on a regular basis – but avoid being a serial shopper. The real, long-term cost savings of 5% or more come into play when you build a strategic, long-term relationship with a carrier, so stick with a partner who you can trust and rely on – and then work with them to optimize your shipping. Long-term contracts allow carriers to grow and expand their networks, and a carrier who is maximizing their assets is a profitable one, able to give you better rates and help you hit your goals.
Why Partner with J. M. Rodgers Co., Inc.?
If you want to develop a land-based freight strategy that helps your company reduce costs, you will need the assistance of experts in the field with the appropriate knowledge and skills. At J. M. Rodgers Co., Inc., we understand that we are dealing with the lifeblood of your company and we work to build mutually beneficial relationships with our clients. Give us a call today and allow us to help you.
