Shippers frequently operate under the presumption that their freight shipping methods (and related expenses) are essentially set in stone and cannot be altered. But it doesn’t mean you shouldn’t question the way things are done just because “it’s always been done this way.” At ABC Cargo, best cargo in UAE, we’ve found a tonne of methods to save freight expenses, changes you can start putting into practise right away.
Some of them are quite straightforward, such as providing nighttime freight pickups. A clever strategy adopted by cargo companies in Dubai can result in freight cost savings of up to 50% compared to “business as usual.” Below are the specific recommendations to reduce those freight expenses are provided below, along with an estimation of the amount you could save.
1. Consistent contract lane volume
Your carrier can sell such backhauls and expand his network if he is confident that he will work with you every day and receive a steady flow of freight in the same lane. As a result of the carrier’s increased efficiency, you will pay less. Furthermore, given the limited capacity in use today, these carriers will concentrate on transporting the freight of customers who are dependable and have high freight quantities.
2. Ship during non-peak hours
Shipping later or sooner can result in observable cost savings. Because most customers strive to get their product to the store by Thursday so it may be shelved Friday and be ready for sale at the weekend, Friday is often a slow day for delivering consumer products. Additionally, Mondays are frequently low-volume days when carriers are looking for freight. Obviously, it varies on the cargo—for instance, canned items have a wider window than fresh goods. Shippers of non-consumer goods can benefit greatly by shipping off-peak.
3. Locate a local consolidation programme to manage smaller shipments.
Retail consolidation is a no-brainer; by pooling your LTL shipments with those of other local businesses shipping directly to the same mass merchants and grocery chains, everyone benefits. Even more significant shippers, including Colgate and CVS, have entered the fray. Only your portion of a less expensive TL shipment is paid for by suppliers like you. In order to maintain their dock bays open and reduce labour costs, retailers get loads on time and receive the same number of goods in fewer, fuller loads. Where might you locate qualified shipper-partners? One place is the local Chambers of Commerce or other business associations. You can also cooperate with a 3PL that has a programme for combining freight from many companies.
4. Avoid frequent rate shopping and focus on building relationships.
To demonstrate to management that you’re serious about lowering freight costs, you might feel compelled to perform the annual RFP dance. However, the best strategy is not to break off the relationship and start over with new carriers each year. Actually, it’s the “speed dating” of freight. Shippers get transportation management advantages that have an impact on their bottom line when they establish stronger long-term, strategic relationships with carriers. Longer-term agreements offer the carrier time to look for nearby clients in order to build a network that is more effective and has fewer deadhead miles. A airline that is profitable and is maximising its assets may afford to provide you better rates.
5. Lengthen lead times for deliveries
Any time planning can be included into the supply chain and the carrier is given as much warning as possible about upcoming loads, they are able to make the most of their resources, including trucks, drivers, and warehouse space. A carrier can simply line up the assets and resources with the help of an advance shipping notice. Paying for a trailer to sit at a facility when it is empty while waiting to be loaded up is one of the biggest expenses for carriers. Carriers can lower those costs by better planning, then some of those savings are passed on to you.
Challenge the Status Quo to Lower Freight Costs
Despite the fact that many of these solutions appear obvious, shippers frequently choose to disregard them and wind up overpaying for freight. Why? The primary offender is the widespread adoption of “business as usual” procedures and rules, both within individual departments and between the shipper and the client.
Check to see whether any of the aforementioned ideas apply to your company. Next, take a step forward. Examine your freight programme and challenge each presumption that was made, such as that it must arrive in two days, that rail transportation is unworkable, or that marketing drives the carton size. When you challenge the established quo, you will save money and see your investments grow.