In the freight and shipping industry, freight forwarding and costs are inevitably part of a company’s expenses. Therefore, if you use shipping services frequently, you will know that the prices vary, and finding a reasonable price last minute is always viable.
Not only time is also formed as part of the expenditure, so freight forward has a direct effect on the delivery time and landed cost. Thus, finding a viable and cost-effective freight forwarding solution is necessary to maintain balance in your company. In order to do this, it is essential that you are fully aware of what the best mode of transport is for your company.
In this guide, we are going to look at five simple ways that you can reduce your freight forwarding expenses. Evidently, having a solid, transparent solution as well as cutting down costs, will surely enhance the growth of your company, as well as maintaining your customers’ expectations.
1. Find and collaborate with an experienced freight forwarder
Now, you may think, why would you want to collaborate on this service, when it’s something you can provide yourself? Here us out:
One: Your core expertise in the supply chain industry tends to lie in finding enhancements and developing your products. So, using experience and well-established freight forward will provide you with more time to focus on what matters, your products. As the saying goes, “time, is money.”
Two: If you opt for an experienced and established freight forwarder, they will have the right connections that you need. Let’s say you have fast delivery, but the costing is too high, their industry knowledge and the network may come in handy.
Now, we’re not saying you need to utilize this option daily. What we’re saying is that you should build a collaborative and mutually beneficial agreement, so that you can take advantage of their assistance. Especially, during peak freight shipments, a third party freight forward might be more cost effective than doing it yourself.
2. Don’t mark all of your shipments as “urgent.”
Depending on what you are actually shipping, or the destination, for instance internationally and nationally. Although this may sound like the basics, it is recommended to do some research and shop around for the best options. If your shipment isn’t urgent, what seems like a long-winded route, may be more cost-effective. So, staying up to date with the current trends, peak shipping time and the fluctuating shipment costs – doing so will surely help you to reduce your freight forwarding expenses.
3. Maximize your loads
The more boxes or loads that you place into your shipment container, it results in you paying less for each product. At the end of the day, you have paid to use the entire container, so don’t be afraid to maximize the space.
4. Select the right transportation method
As you will be aware, there are various options, ocean, air, road, and railways. So, similar to point two, you can combine your freight forwarding route to select a cheaper alternative. The same applies when selecting your freight forwarding method, source the most cost-effective solution, depending on your shipping needs.
5. Find the right logistics partner
The ultimate aim of the supply chain is transparency. Thus, you need to ensure you have a mutually beneficial and collaborative arrangement with a logistics supply chain provider, who understands your freight needs. If you have full transparency and clarity for the entire freight forwarding process, it allows you to maintain, manage and reduce forwarding expenses. Also, it limits errors, which reduces the amount of disputes, thus ensuring you get paid promptly.