How to save money in these economical times is the goal of any transportation manager in industry today. In the first part of our two part series, we are going to closely look at the ten ways in which you can reduce freight rates and save money. In this article, we will look at the top 5.
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. Because most fuel surcharges favor the carrier, in the long run, work to get as close as possible to the carriers' actual fuel consumption and real cost of fuel. It will save you money.
4. Use systems to eliminate administrative work. Too much time is spent tendering loads and paying freight bills. This is work a system should be doing. Cutting administration is another way you can reduce freight rates.
5. Another software technology can handle things such as routing and consolidation. Better routing and consolidation is a major contributor to savings for LTL shippers. Time and time again, it has been shown that doing routing and consolidation manually is far from optimal. Better routing and consolidation can save costs and typically reduce freight rates.
Test your skills and see how efficient you are at managing costs by loading a truck or picking pallets in a warehouse. Visit www.TransportationOptimization.com. While there, ask for a call with one of their premier transportation consultants. Working for many companies in the top Fortune 50 like Procter & Gamble and BP, Transportation | Warehouse Optimization understand your unique problems and know how to solve them.
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. Because most fuel surcharges favor the carrier, in the long run, work to get as close as possible to the carriers' actual fuel consumption and real cost of fuel. It will save you money.
4. Use systems to eliminate administrative work. Too much time is spent tendering loads and paying freight bills. This is work a system should be doing. Cutting administration is another way you can reduce freight rates.
5. Another software technology can handle things such as routing and consolidation. Better routing and consolidation is a major contributor to savings for LTL shippers. Time and time again, it has been shown that doing routing and consolidation manually is far from optimal. Better routing and consolidation can save costs and typically reduce freight rates.
Test your skills and see how efficient you are at managing costs by loading a truck or picking pallets in a warehouse. Visit www.TransportationOptimization.com. While there, ask for a call with one of their premier transportation consultants. Working for many companies in the top Fortune 50 like Procter & Gamble and BP, Transportation | Warehouse Optimization understand your unique problems and know how to solve them.
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 work with companies such as PG and BP and many other Fortune 50 companies. They can help you reduce freight rates and save money.
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