Saving money is the buzzword in any industry today. That is true in the transportation industry, and a specific concern is the cost of shipping and how to reduce freight rates. In part 1 of a two part series on how to reduce truckload freight rates, we will look at the top 5 of a top ten list of how to save money.
1. Procter & Gamble put the first factor into practice and saved money. They eliminated freight costs by saving carriers' time and this saved money. By providing incentives for their customers, P & G eliminated long waits for unloading and got their trucks turned around in two hours. This resulted in happier drivers, turning the carrier equipment around faster and reduced hours of hand unloading and counting. Wasted carrier time could be turned into productive time and hence reduced freight rates.
2. Xerox eliminated deadhead miles and carriers rewarded them with low per-mile rates. How did they do it? They used an old trick started in the 1980's called continuous moves.
3. Fuel surcharges are favoring the carriers at the expense of shippers. The surcharge is based on fuel efficiency (mile per gallon) far lower than the carrier actually achieves. Carriers also pocket the difference between actual fuel costs and the DOT retail price - which may be quite a bit higher.
4. Check out the latest software available to find something that can handle your paper work. This can reduce your freight rates. Too much time is spent paying freight bills or tendering loads. This is work a system should be doing.
5. Perform routing and consolidation. Face it, doing routing or consolidation manually is not optimal. Again, there are systems that are so much better at that. Let them do it. It will save costs and on average reduce freight rates.
When you consider a Transportation consultant, Transportation | Warehouse Optimization has been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view, know the market place and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. Ask for a free consultation. While visiting their website, TEST YOUR SKILLS and see how well you can load a truck or manage cost savings. - 16492
1. Procter & Gamble put the first factor into practice and saved money. They eliminated freight costs by saving carriers' time and this saved money. By providing incentives for their customers, P & G eliminated long waits for unloading and got their trucks turned around in two hours. This resulted in happier drivers, turning the carrier equipment around faster and reduced hours of hand unloading and counting. Wasted carrier time could be turned into productive time and hence reduced freight rates.
2. Xerox eliminated deadhead miles and carriers rewarded them with low per-mile rates. How did they do it? They used an old trick started in the 1980's called continuous moves.
3. Fuel surcharges are favoring the carriers at the expense of shippers. The surcharge is based on fuel efficiency (mile per gallon) far lower than the carrier actually achieves. Carriers also pocket the difference between actual fuel costs and the DOT retail price - which may be quite a bit higher.
4. Check out the latest software available to find something that can handle your paper work. This can reduce your freight rates. Too much time is spent paying freight bills or tendering loads. This is work a system should be doing.
5. Perform routing and consolidation. Face it, doing routing or consolidation manually is not optimal. Again, there are systems that are so much better at that. Let them do it. It will save costs and on average reduce freight rates.
When you consider a Transportation consultant, Transportation | Warehouse Optimization has been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view, know the market place and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. Ask for a free consultation. While visiting their website, TEST YOUR SKILLS and see how well you can load a truck or manage cost savings. - 16492
About the Author:
Tom Moore and his associates at Transportation l Warehouse Optimization will help you reduce freight rates and save you money. Transportation l Warehouse Optimization consults with companies such as Procter and Gamble and BP and many other Fortune 50 companies. They can help you reduce freight rates and save money.
