There are so many shipping options for moving freight and with the ever-evolving logistics, rules, and tariffs you may need to alter your business’s shipping strategy and processes. There are economical ways to reduce risk, enhance efficiency, and achieve significant cost reduction.
If your business is looking to rein in transportation costs, but you don’t have the expertise in-house than a logistics provider is the choice. They can save you money by determining which mode of transportation is best for each particular shipment. This decision helps businesses of all sizes. Your business gains a partner that can focus on logistics and transportation management in a way that most companies cannot do internally.
A logistics provider understands how to get the best deals on transportation, whether that is from capitalizing on best freight carriers or consolidating freight. They have excellent tracking capabilities and can offer a good Transportation Management System (TMS) that allows the customer to track, pull paperwork and secure access to your shipments. They will help access what your business needs and offer solutions to those needs.
Pricing of shipments is complicated and something your business may not have the insight to manage. A logistics service provider is very experienced with rate negotiations, as well as having dedicated staff that follow the latest regulations and external factors that affect pricing. This knowledge means that you will pay even less for shipments.
You can reduce shipping costs by consolidating shipments, especially if you have less than truckload (LTL) shipments. A transportation company will help by combining shipments from more than one company that needs to go to the same destination. Thus, giving your business a better price.
Be realistic about the level of service you need. There are cases where expedited shipping might be a must. However, with the proper planning, you will not need to overpay to get it out in one day.
If your business does in fact handle a ton of shipping, then you may be eligible to take part in package programs. Clients of shipping and logistics providers are often qualified to become part of their programs with carriers like DHL and get extensive discounts. PPLUS Global has a DHL Small Package Program that lets our customers who ship internationally small packages at significantly competitive prices. All the perks of using DHL but at a more cost-effective price.
Setting up a system to track with measurable key performance indicators (KPIs). Measure inbound and outbound costs, on-time delivery, transportation costs per shipment order. By looking at the data and metrics, it is much easier to do a cost analysis and determine what is working and what is not working.
If you are handling your own logistics, you might be costing yourself valuable time and money. There are ways that you can save on costs like consolidating shipments and possibly high volume corporate accounts with carriers. However, if you work with a third-party logistics provider like PPLUS Global, you will find that they have a variety of solutions that they can tailor to your specific needs and the outcome is less wasted time and trouble for your business.