Some Suggestions on Reducing Shipping Freight Charges!
Low cost freight shipping, ocean freight shipping rates, international air freight rates
If you are in constant touch with the business world, you are well aware
of where shipping
rates are heading, so let us see how we can reduce your freight costs—
(1) Oil prices may or may not fall in future. So it is up to the companies,
at least the multi-channel ones, to work out short-term and long-term
strategies that will ensure all-round benefits. You have to be a good
negotiator to ensure that you get nothing but the best services for what
you are paying. If you already have a contract, re-negotiate.
(2) Get yourself well acquainted with certain facts—pricing concerning
carriers, discounts on offer, your package shipping profile, the 70+ accessorial
charges that go into your total costs, and how important is your account
to the hub or depot you are dealing with. Now that you have all the information
at hand, bargain! If your outbound volume is good, then even if you have
a smaller account than many others, the management will prefer to back
you.
(3) Check out how best you can use USPS to your advantage. Ask yourself
if you are using the best-way rate shopping.
(4) There are ways that you can reduce unnecessary costs—using package
consolidators and zone skipping; weighing packages and using inserts as
soon as they are pushed into a higher bracket; and taking a second, thoughtful
look at your shipping and handling tables.
(5) What about utilizing by-item shipping charges mentioned online as
well as in your catalog copy for products that are heavy or over-sized?
Research this option, and if you think it will work for you, go for it.
(6) Sometimes, there is free shipping on offer for certain goods. What
is the effect on the minimum-dollar order value on your transportation
costs? Think it is going to bring in some savings? Then you can opt for
it. If you feel that the minimum should be hiked, then you better abandon
the idea.
(7) Considering that the Ground Residential minimum charge is $6.15,
it would be advisable to cut down costs on back orders. This can be achieved
only if your inventory is in a better position than now; so improve your
inventory forecasting and systems.
(8) If you take the trouble to work on your average order values, you
can bring down shipping costs by a large percentage. So get working on
that strategy.
(9) Have you considered using the same carriers for freight that is outbound
as well as inbound? You will be able to leverage your economy much better
this way.
(10) If you can afford it now, go in for an expert transportation consulting
company. Even better, an internal specialist will advise you on cost-effectiveness
via continual assessment; but you should be able to afford his services.
(11) Distances make the difference. So if your warehouse is located far
away, you will have to shell out more for transportation. If you can afford
it, get a second warehouse that is nearer.
(12) Finally, re-think about giving free freight to return merchandise.
It may not be so advisable in these times of recession.
