6 WAYS YOU CAN LOWER YOUR SHIPPING COSTS

May 29, 2018 0

We can all agree that just like the world, freight transportation has changed and it’s still changing. We’ve heard those that are to the idea that this might be due to the role of technology, fuel costs, and different government regulations. Whatever the reason, it’s crystal clear that savvy investors and various businesses owners are constantly looking for ways that can reduce the shipping costs. It’s a challenge experienced by basically all shipping companies around the world. So don’t think shipping Montreal is any different.

Go ahead and ask any shipping firm what their goals are and you’ll realize that they can only be achieved if the company can contain its costs while improving efficiency. Freight optimization has always been the way forward. Do you wish to know how one can optimize shipping in Montreal?

Supplier Inbound Compliance

It’s common knowledge that the inbound and outbound logistics are part of a supply-chain management field. As a manager, you’re obligated to maximize the efficiency and reliability of distribution networks, and at the same time minimize the costs involved. You can fully control whatever happens within the outbound shipping logistics, but when it comes to the inbound logistics, you’ll have to depend on the suppliers’ compliance. They have to be willing to follow the rules put in place or else they’ll mess up your shipping budget.

Selection Of The Shipping Mode

You can also reduce your shipping costs by ensuring you’re using the most cost-efficient and effective shipping method. For instance, in case you have a non-rush load, you can opt for a combination of truckload, intermodal, and LTL (less-than-truckload). If it’s a rush load, you can compare air transport to different ground services before picking one that ensures your time-sensitive shipment gets sent in a more economical way.

Avoid Unnecessary Charges

Audit your invoices every now and then just to make sure nobody is charging you unexpected fees. The one thing that always wreaks havoc with a firm’s shipping costs is the special services fees which we usually incur because we didn’t appropriately plan or due to negligence.

The Packaging

When packaging, you have to look into two things: the size and the material. A shipping carrier will charge you based on your package’s weight and size. So if you have the option of using smaller boxes, don’t go for anything bigger. The material is also significant in this case seeing as it not only protects the shipment but also influences the costs.

Negotiate

If you’ve used a particular carrier for a while they’ll want to secure you as an account by offering incredible incentives. Try to convince them that you’re looking for a long-term relationship that can benefit both parties financially. Your intention should be to get them to go low on the shipping rates.

Use Regional Carriers

There’s no point of using a national firm while shipping within a particular geographical area because most regional carriers are more cost-effective. Plus, apart from the fact that you’ll be dealing with people who are offering low prices, you’ll service your clients better since the local shipping company knows well the demand or expectations of customers in that area.

 

 


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