Shipping companies have been looking for ways to save money and are saving more than ever. It’s by handling the cost before demand exceeds supply and any surge shakes the balance. Let’s explore the top five ways that can help your future shipping costs:
Prioritize rewarding, efficient packaging practices
The less material used for packaging, the better. Although the packaging is for protection, you might not use more than you need. It’s not about providing your customers with the best packaging but how much you’re paying to achieve this goal.
Or perhaps a packaging supply company offers the same quality at a lower price? Or you might find that your product uses less litter (bubble wrap, packaging materials, etc.) and suffers the same amount of shipping damage, then it makes sense to implement a policy to reduce litter usage.
Emphasize bulk orders
A common theme in the shipping industry is “shipping more, less frequently.” There is no doubt – if you can ship 20 pallets at a time instead of 4 pallets in a few days, you will save up. One way to increase this potential is to incentivize your customers to buy your products in bulk by offering reduced shipping costs. You pass on the cost savings to them. Similarly, you can apply this concept to retailers with a little more work. In short, the more people order from you in bulk, the lower your shipping costs.
Minimize transportation on peak days
This refers to the days that it is normally shipped to accommodate customers who want to receive the merchandise before the weekend so that they can stock up on the weekend. If possible, based on relevant products and customers, it is best to ship on “off-peak” days to reduce shipping costs.
For perishable goods, this may not be entirely feasible. However, by establishing a good relationship with your customers and using their transportation data, you can determine the method of implementing “non-business hours” transportation time to accommodate them while reducing transportation costs.
For non-perishable items, off-peak transportation should not be a problem for related parties. Be sure to maintain transparent communication with your customers so that they can adjust accordingly.
Foster a long-term carrier relationship
Loyalty goes a long way – if you avail an operator’s services for years, they usually reciprocate, reflected in their rates and other areas of your business relationship.
Although you can look up other operators’ rates, there is still something about long-term partnerships. Both you and your provider will always share a common ground to analyze and actualize your business goals better.
Team up with a reliable freight forwarder
These suppliers have access to large carrier networks and extensive experience in the transportation industry. Just like our TruKKer digital freight network that serves as the lifeblood of MENA’s supply chains. Shippers experience optimum asset control, access dynamic ETA, and standardized performances besides real-time quotation. For any carrier-related requirements – be it communication, or operations, the same platform provides the necessary means. All the involved parties, from carriers to brokers, or operators, share a single source of truth on the platform, which minimizes traditional communication frictions. As supply chains become more complex, shipping companies must carefully consider their practices to determine where changes can be made.