Shippers often think while managing the shipping of freight that shipping costs are fixed and can’t be changed. But this is not the case. Although it’s always been done like that, it shouldn’t mean that you can’t tweak a few things to get benefits. Gillson Solutions has identified many ways to reduce shipping costs, some of which are explained below.

Five Easy Ways To Save on Shipping:

There are many easy ways to save shipping costs that companies can adopt and increase their bottom line.

Reliable Freight Volume:

If your global logistics carrier is working with you every day and knows that he’ll be getting a regular flow of the same freight, he can build his network by marketing those backhauls. As a result, you’ll lower your shipping costs and get a more efficient carrier. You can potentially save 2-12% more than standard lane pricing.  

Don’t Ship On Peak Days:

Try to ship a day before or after a holiday to increase measurable savings. Friday is usually an off-peak day as most companies prefer getting their products on Thursdays, so the products reach the shelf on Friday. Mondays are again low-volume for some carriers. It all depends on the kind of cargo you sell; canned and retail goods have a larger shipment window, but fresh foods need to be transported immediately.

Consolidation For Your Freight:

Consolidation is a no-brainer as it combines LTL shipments of all nearby companies shipping to the same mass retailers for direct delivery. Even large companies opt for this shipping method as it cuts down costs. This method helps retailers keep their shelves full and reduce labor and shipping costs while saving 25% more than unconsolidated loads.

Develop Long-term Relationships:

Sometimes, businesses try to reduce costs by switching to different freight transportation companies, which can’t always be fruitful. When you develop strategic and long-term relationships, you get to leverage managed transport advantages that affect your bottom line. Longer relationships give carriers time to establish an efficient network with nearby shippers maximizing assets.

This strategy can reduce your annual shipping costs by 2-3%.

Increase Delivery Lead Times:

With the proper planning in a supply chain, you can provide advance notice to the carrier about future loads. This way, you can maximize assets like drivers, trailers, and warehousing spaces. Your carrier will be able to line up all his help to create a faster and simpler shipping experience for you. 

Global logistics carriers lose a lot of money when they pay a trailer to sit idle at a facility waiting to get a load. Having better planning can reduce these costs. Also, the more advanced the planning schedule, the more benefit you can get out of it.

Some Additional Strategies:

• Reduce dunnage by not over-packing goods; this increases your expenses. Try to provide maximum safety in a nominal amount of money.
• If you have consistent loading times, you’ll retain a longer relationship with your carrier and minimize shipping costs because waiting times are reduced. The whole process is efficient.
• Maximize shipping space by stacking or packing products differently. This saves space allowing you to ship more at one time.

Try to ship more significant amounts less often, as it is cheaper. This way, you can save up to 50% more.