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. Eliminate costs for the carrier and share the savings. It seems obvious: if you save the carrier time and money, you will reap the benefits. For example, Procter & Gamble eliminated the long waits for unloading by providing the customers an incentive to get all trucks turned in two hours. By eliminating hours of hand unloading and counting, carriers turned their equipment faster and had happier drivers. A win for the carriers resulted in a win for P & G and the end result was 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. 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.
Transportation | Warehouse Optimization has worked with the best of the best. Procter & Gamble, and other Fortune 50 companies are among their client list. More importantly, P & G is a long-term client (since 1992). Transportation | Warehouse Optimization has saved them millions of dollars with expert transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and like good consultants do, keep the client as the top priority. Contact them at www.TransportationOptimization.com today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. - 15359
1. Eliminate costs for the carrier and share the savings. It seems obvious: if you save the carrier time and money, you will reap the benefits. For example, Procter & Gamble eliminated the long waits for unloading by providing the customers an incentive to get all trucks turned in two hours. By eliminating hours of hand unloading and counting, carriers turned their equipment faster and had happier drivers. A win for the carriers resulted in a win for P & G and the end result was 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. 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.
Transportation | Warehouse Optimization has worked with the best of the best. Procter & Gamble, and other Fortune 50 companies are among their client list. More importantly, P & G is a long-term client (since 1992). Transportation | Warehouse Optimization has saved them millions of dollars with expert transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and like good consultants do, keep the client as the top priority. Contact them at www.TransportationOptimization.com today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. - 15359
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 CPG companies. They can help you reduce freight rates and save money.
