SHIPTHIS EXPLAINS HOW TO MANAGE FREIGHT COSTS


Posted November 19, 2020 by Shipthis

At Shipthis, we have discovered hundreds of ways to reduce freight costs using a freight management system and now you can reap the same benefits for your business.

 
Shippers often work with the impression that the way they ship freight is fixed and cannot be maneuvered. This is where freight management software companies come in. Their idea is that because it has never been done before, doesn’t mean it can ever be done.

Some of these tricks are fairly simple - like providing night-time pick-ups. A tech savvy, cost-effective strategy can help your business save more than half of your operational costs by significantly reducing freight charges.

Shipthis, a Delaware based digital freight management company offers new age solutions like logistics erp software, freight forwarding system and numerous other handy software for freight forwarders. Below are some specific recommendations from Shipthis to manage freight costs.

Make use of Off-Peak Days

The importance of utilising off-peak days cannot be neglected by shipping companies and erp logistics plays a huge role. Shipping a day earlier or later can bring you significant savings. For instance, Friday is an off-peak day for shipping utility goods as most customers want to get their product to store latest by thursday. It gives them some time to put the goods on shelves by Friday, to be sold over a typically busy weekend. Shipping off-peak is ideally a wonderful option for shippers of non-consumer goods. Shipthis advises that by using off-peak days effectively, businesses can potentially save upto 10% of the total freight cost.

Provide Night Pick-Ups

This may provide carriers a window to make your freight into a system by offering them night pick-ups after most other shipping companies are done for the day, like 6 to 12pm. For instance, a freight company can turn down a shipment which is supposed to come during the day by offering a later pick-up slot. It works as a win-win for both the parties. Shipthis ensures that by using this strategy in erp systems logistics, businesses can save upto 15-20% of the total cost.


Outsourcing Transportation

For smaller units, freight management is not a core expertise. It can be a tedious and low output job of hiring, training and taking charge of a transportation staff when you do not have enough personnel. A freight software that helps you outsource freight management lifts a significant financial crunch of staffing and general capital expenses. Additionally, it can open the doors for innovation and cost reduction. Now, carriers can effectively function better than an in-house system because they can purchase fuel in bulk and have an efficient transportation system with better parking. By outsourcing transportation, companies can potentially save 3 to 5% of the total cost.

Dunnage Reduction

More often than not, products require items like air bags, extra straps, blocking and bracing to ensure them knocking together during a long-distance shipment. However, sometimes shippers go berserk in trying to protect a shipment. At Shipthis, we can help you reduce that dunnage and significantly shrink shipping costs without jeopardizing shipment safety. Do not hesitate to seek our advice as these strategies can reward your business by making minor changes like selecting the right box size can cut weight and dunnage. On each load, you can save 1 to 3% of the total cost.

Ship more

As a shipping company, you should always encourage customers to place larger orders. It is definitely cheaper to ship ten pallets at once than to ship five pallets in two deliveries. Retail companies often tend to go for a smaller shipment and hence it is in your best interest to provide more incentives by sharing some of the freight savings with the retailer. By doing this, you can save upto 50% on freight cost.

Wrapping Up

Most of the above solutions seem logical and yet shipping companies often ignore and end up paying a lot more on freight than they should. At Shipthis, we ask you to examine your strategies and match it with the ones described above. It will give you a clear picture of your shipping process. If you think there is any discrepancy, you can contact us today and we can walk you through a smoother freight management system that can benefit your business in the long run. Visit: https://shipthis.co/freight-forwarding-software
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Issued By Shipthis
Business Address 2035 Sunset Lake Road, Suit B-2, Newark, Delaware 19702.
Country United States
Categories Software
Tags freight forwarding system , freight management software , freight management system , freight software , software for freight forwarders
Last Updated November 19, 2020