5 Freight Logistics Hacks to Cut Shipping Costs for Your Business
By Space Coast Daily // July 25, 2023
With ever-increasing shipping costs, finding ways to save is not just good for your bottom line; it’s a key factor in keeping your business afloat.
To help with that, here are five freight logistics hacks that can help trim your shipping expenses.
1 – Price Comparisons
One of the easiest ways to keep your shipping costs low is to compare prices between different service providers. The shipping industry is fiercely competitive, and thanks to that, prices can vary widely from one provider to another. And there are freight calculator tools online that make it easy to check prices between couriers. This one is a good example: https://fastcourier.com.au/freight-calculator.
Remember, even if you have a longstanding relationship with a shipping company, don’t hesitate to look around for better deals. You can use the price quotes you receive as a negotiation tool to get lower rates from your current provider. Plus, it’s not only about the price — but comparing service providers will also allow you to evaluate different service levels and pick the one that best fits your business needs.
2 – Optimization of Packaging
The next key to unlocking savings in your shipping costs is optimizing your packaging. Carriers often charge based on dimensional weight, which takes into account both the weight and size of the package. This means that by using the smallest package that safely fits your product, you can cut down significantly on the cost.
It’s also important to consider the packaging material. Lightweight and recyclable materials not only reduce weight (and thus cost) but also resonate with eco-conscious customers.
3 – Shipping Consolidation
Consolidating your shipments is another clever way to bring down your freight costs. Instead of sending out items as soon as they’re ready, consider holding them until you have enough to make a bulk shipment. Bulk shipments often attract lower rates from carriers, leading to substantial cost savings.
Of course, this strategy may not be ideal for all businesses. You’ll need to consider your customers’ expectations and balance the need for cost savings with their desire for a timely delivery.
4 – Leveraging Technology
Technology can help streamline your shipping operations and save money in a variety of ways. Software tools can automate various aspects of your logistics, such as tracking shipments, managing inventory, or even comparing shipping rates across various providers.
With these tools, you can not only reduce shipping costs but also free up valuable time, which you can use to focus on your core business activities.
5 – Building Strategic Partnerships
Lastly, consider building strategic partnerships with your carriers. Get in touch and discuss your business needs to see if you can negotiate a deal that is beneficial for both parties. Remember, your carrier wants to keep your business as much as you want to keep your costs down.
Your freight courier can also give you advice on how to reduce shipping costs through shipping on less busy days of the week or by paying for their shipping services in advance.
