Four Tips You Need To Know To Lower Shipping Costs

Shipping costs can be a significant expense for businesses, especially for those who rely on
shipping goods to customers. Luckily, there are several strategies that can help lower these costs
without compromising the quality of service. Here are four tips that can help you save money on
shipping while still meeting your customers’ expectations.

1. Automate Your Critical Processes

Technology and automation present opportunities to streamline even the most complex transportation processes.

For example, integrating TMS can help improve route efficiency and optimize carrier selection for a more cohesive logistics workflow from end-to-end. It’s important to start small and build with technology because trying to do too much all at once can be difficult and expensive, causing shippers to fail. A good place to start is by cutting out unnecessary phone calls and reducing paperwork; two easy to achieve “wins” that even the most basic logistics technology can provide, saving you time and money.

2. Audit Your Freight Invoices

Companies should use this critical source of data to measure and improve operational performance. With a freight bill audit strategy, you can analyze key transportation information that highlights opportunities for growth and crucial business insights that can increase your profit margins.

Don’t underestimate the value and impact actionable data analytics, better visibility, and increased payment accuracy can have on your business.

3. Work with a 3PL

Shipping costs are always rising, and so are your customers’ expectations for service performance. While this reality is inevitable, hiring a reliable 3PL can help significantly reduce logistics expenses without requiring you to make big capital investments on your own. With their industry expertise and advanced technology resources, 3PLs can help you secure favorable rates, improve process efficiency, gain a network of trusted carriers, and ultimately give you more control over your logistics processes.

Outsourcing is a great solution for saving money and improving service performance that takes  responsibility off of you, allowing you to focus on other priorities.

4. Be More Flexible

Logistics costs are most often a direct result of a shipment’s distance traveled and the speed in which the delivery needs to be made.

With better delivery and sourcing options, you can maintain an advantage over less flexible competitors. Strategic action plans improve service to customers while also mitigating inbound shipping costs.

There are many different ways to lower shipping costs; however, a lot of them are overlooked. These four tips can help you develop more sustainable business practices that can effectively reduce your shipping expenses while maintaining a high level of service for your customers. Implementing these tips can help you save money and improve your bottom line in the long run.

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