There are many ways and techniques companies use to save money on transportation. Some of the larger initiatives such as network optimization, site consolidation, or contract restructuring can take some time to finalize. What are the initiatives that can be implemented in most any freight network regardless of commodity, volume, or mode? With transportation forecasts showing freight rates to increase from 3 percent to 4 percent this year, we would like to highlight a few quick wins to help reduce transportation costs.
- Converting live loads to drop trailers
- Flexible pickup/delivery times
- Implementing 24 hour windows
- Palletizing freight
- Grouping orders heading in the same direction for a carrier within a trailer
- Forecasting and sharing future or seasonal orders with the carrier for load planning
- Using electronic bills of lading and billing practices
- Implementing joint initiatives to fill empty miles
Carriers understand that every customer will not be able to implement every one of these cost saving measures. The biggest attribute for shippers to improve their costs and supply chains, is to share as much information as possible with their carrier. Reward the carriers that view the partnership as a journey with more volume and hold the carrier accountable to provide savings ideas every year.