Reducing inbound freight costs is on everyone’s mind
It seems like everyone is looking for ways to lower business expenses, in several areas; insurance, rent, taxes, and unfortunately employees. All of those areas often require significant business process changes. One that does not is cutting your freight costs. This article speaks to inbound freight costs only. There is also an excellent article by George Muha, the Northeast Regional Sales Manager at Logistics Management, Inc click here to read it.
Here are some easy ways you can save as much as 40% on your inbound freight expenses:
- Develop a program to have your vendors that ship to you, or directly to your customers, “forcing” them to use your carrier account numbers.
- Provide a “rate shopping” tool for your purchasing and sourcing departments so when they are placing orders they can choose the best carrier and service level and make it part of the Purchase Order you issue.
- Post an inbound routing guide on your companies website. These routing guides can be as simple as a one page table, or as complicated as many pages. Some large retailers even have interactive on line routing guides.
- Work with your carrier reps, letting then know about your planned increase revenue for them, ask them to give you an increased incentive if your volume increases.
I do 20-40 meetings a month with companies that want to reduce freight, and over the last several months their questions have focused almost exclusively on inbound.
Good luck on this, and if you need any help with it, please contact me or another professional who you are comfortable with.
Ship Better Save Money
Jim L. February 22nd
These are areas I don’t think about often – very useful information and great ideas for company’s that want to lower their transportation costs!
About Author
Steve Cooper
As one of the Principles of the Agile Network, working in the Mid Atlantic region, I have been helping companies for more that 25 years reduce their shipping costs, and streamline their order to deliver process. Save Money Ship Better