Freight Forwarders: Services, Value & When to Use Them
Shipping companies are constantly searching for ways to save money, now more so than ever, and for good reason. With the cost of shipping rising exponentially while consumer demand continues to grow in regard to both demand for products and demand for quicker deliveries, it is absolutely essential that shipping companies look for ways to begin cutting down on transportation costs before the demand outweighs the supply.
In this blog post, we are taking a look at the top 5 methods to reduce transportation costs that your company can leverage right now to begin saving money on future shipments.
Yes, Efficient Packaging Practices Can Reduce Transportation Costs
The less material that can be devoted to packaging, the better. While some packaging is necessary to protect the goods in transit, you actually may be using more than you really need. That's not to say that you should not provide the best packaging possible for your customers, you might just need to be a bit more attentive to how much you are spending in order to make that a reality.
Talk with your carrier and discuss potential ways you could go about shipping items that require less packaging. Don't be surprised if they do have a few suggestions for you. Your carriers are, after all, the ones who spend time moving the package. Talk to them to gain some insights into the process of that journey that could influence your packaging decisions.
When you evaluate your packaging suppliers, how do you know if you're getting the best value? There may be a packaging supplies company that offers the same level of quality for a bit less than you are paying now.
Or if you find that your goods are incurring the same amount of damage during shipping using less dunnage (bubble wrap, packing material, etc.) it makes sense to implement a policy of using less of said dunnage. As a side benefit, your company will be able to show that you are implementing sustainable practices by using less material.
And the list goes on.
Whatever route you decide to take, efficient packaging practices will save money on the actual materials needed to pack the goods and will provide more space for storing and shipping of said goods.
Encourage Bulk Orders
A common theme in the shipping industry is consolidated freight—shipping more, less frequently. There’s no doubt about it: if you can ship 20 pallets at once instead of 4 pallets over multiple days, you will save a significant amount of money.
One way to increase this potential is to incentivize your customers to purchase their products in bulk by offering some sort of reduced costs for the shipping of larger shipments. Essentially, you are passing your cost savings onto them. Similarly, you can employ this concept with retailers, just with a bit more leg work.
In a nutshell, the more people who order from you in bulk, the lower your shipping costs will be.
In this scenario, everyone wins:
- You reduce transportation costs.
- Your company creates larger orders.
- Your customer gets to reap the benefits of your cost savings.
Minimize Shipping on Peak Days
Certain days of the week are considered “peak” days. This refers to days when shipments go out to accommodate customers who want to receive their goods before the end of the week. This helps them get and remain stocked for the weekend. When feasible, it is a good idea to ship on “off-peak” days for lower shipping rates.
For shipments such as those containing produce or other perishable items, this may not be completely feasible. However, by developing good rapports with your customers and leveraging your shipping data, you can determine ways to implement “off-peak” shipping times to accommodate them while still being able to reduce transportation costs.
When it comes to non-perishable items, non-peak shipping shouldn’t be a problem for any parties involved. Just ensure that you maintain transparent communication with your customers so that they can adjust accordingly.
There may be little you can do to affect your shipping during “peak season”. However, modifying your operations throughout the week can go a long way in improving your shipping costs over time.
Seek Long-Term Carrier Relationships
The longer you work with someone, the stronger your rapport becomes. This is, of course, so long as working together has been a good experience. It is true that loyalty goes both ways. If you’ve been committed to one carrier for a long time, they will generally show that same commitment. This is often reflected in the offer of better rates for your company.
While it is always wise to shop around for better prices, there is something to be said for long-term rapports. If you know your carrier and they know you, you will likely be able to negotiate a better rate and maintain a happy relationship for as long as it makes sense for both of you.
Consider Partnering with a Transportation Service Provider
If you are looking for ways to reduce shipping costs, transportation service provider partnerships bear consideration. These providers have access to large carrier networks and have significant experience in the transportation industry.To learn more about how a Modern 4PL approach can benefit your operations, download our Modern 4PL for Dummies guide.
Final Thoughts
All processes involved within the supply chain continue to become more expensive and harder to overcome. As the industry changes, shipping companies need to carefully consider their practices to determine where changes can be made.
If you're struggling to keep up with rising transportation costs, you may want to consider implementing the above tips. As mundane as these tips may seem, that is also the reason they generally go overlooked. However, they can have a tremendous impact on your business. Therefore, treat them as a baseline to begin with. If you don't have a solid foundation, you cannot expect to scale or improve your business operations. You can also reach out to Redwood Logistics to help you solidify your foundation if you need!
FAQs
How can I reduce transportation costs quickly?
The fastest ways to reduce transportation costs are to improve packaging efficiency, encourage bulk orders, and shift shipments to off-peak days when possible. These changes can lower material spend, increase shipment density, and help you avoid higher peak-day rates. Even small operational adjustments can create meaningful savings over time.
Why does better packaging help lower shipping costs?
Efficient packaging can lower shipping costs by reducing the amount of material you buy, freeing up more space for storage and transport, and sometimes reducing the need for excess dunnage. It can also help protect goods without overpacking them. Talking with carriers and packaging suppliers can reveal practical ways to use less material without increasing damage.
How do bulk orders reduce transportation costs?
Bulk orders reduce transportation costs because shipping more at once usually costs less than sending smaller shipments over multiple days. For example, moving 20 pallets in one shipment is generally more efficient than shipping 4 pallets across several days. The result is fewer shipments, better consolidation, and lower total freight expense.
What is off-peak shipping, and how does it save money?
Off-peak shipping means sending freight on days when demand is lower and rates are often more favorable. It can help reduce transportation costs by avoiding the busiest shipping days, especially for non-perishable freight. For time-sensitive or perishable goods, the timing may be harder to change, but shipping data and customer communication can help make it work.
Why do long-term carrier relationships matter for freight pricing?
Long-term carrier relationships matter because loyalty and familiarity often create room for better rates and smoother negotiations. When a carrier knows your shipping patterns and service expectations, they are more likely to work with you on pricing. While it is still smart to compare options, stable relationships can support more favorable terms over time.
Is it worth partnering with a transportation service provider to cut shipping costs?
Yes, a transportation service provider can be worth it if you want access to a broader carrier network and industry expertise. These partners may uncover savings that are difficult to find internally, especially when shipping complexity is growing. Their value is often in helping you compare options, improve execution, and identify overlooked cost reductions.
Should I always use less packaging to save money?
Not always. The goal is to use efficient packaging, not simply the least packaging possible. You still need enough protection to avoid damage in transit, but many companies use more material than necessary. The best approach is to review packaging performance, talk with carriers, and test whether less dunnage can maintain the same delivery quality.
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