Shipping Strategies for Cost Effectiveness
The different shipping policies and protocols make shipping complicated and difficult. The various methods used and carriers also add to the confusion. As a result, the list of trucking companies that fail to keep costs under control is endless. But being aware of your general objectives can reduce your shipping costs considerably.
Location Is Important
Location is one of the important factors that can reduce shipping costs to a great extent. If you need to choose among carriers, choose the carrier that is nearer to your company. This will ensure that you get the service at discounted rates, owing to the short distance pick-up, and you can also place orders on a short notice.
You can find a list of trucking companies who have hubs positioned near airports all across the country. If your business is near one of these, you can take advantage of the short notice pick-up times and short distances. High volume deliveries will also reduce your shipping costs.
Forecast Your Logistic Needs
Understanding your own logistic needs is important before you place a shipping order. If you can decide how much shipping needs to be done, you can easily choose the best company from the list of trucking companies that you have short listed.
Forecast the number of packages you are expecting to deliver within the next year and then calculate the relevant cost. After you understand your own needs, you can approach appropriate companies. If you think that the costs are too high to pay at once, negotiate with your shipping company so that you can make the payments in installments.
Choosing the Best Mode of Shipping
In order to choose the best mode of shipping, you need to understand everything from the route your shipments take to the amount of damage that is likely to occur. There are 5 major factors that you should consider in order to optimize the costs – lead-time, handling requirements of the packages, their size, total trip, and comparative costs.
Ground shipping is the cheapest option, but don’t compromise on speed or reliability for cost. Make a list of trucking companies and then select the optimum one before placing your shipment order.
Getting the Right Documents
Proper legal documentation is important for shipping. If you are shipping within the country, make sure you have the proper postage meters. A list of trucking companies also provides a suite of postage services. If you want to send your goods outside the country, make sure you are aware of the international shipping norms and customs. This will avoid extra paperwork and resulting costs.
Proper knowledge of legal parameters will not only save you money, but will also save you from unnecessary delays in delivery. Make sure you take care of the paperwork in-house. This will also reduce your shipping costs.
No doubt shipping is a costly and difficult task. But if you plan carefully about the amount you are going to ship and select a list of trucking companies accordingly, then you can reduce your overall costs. Getting the right location as well as documentation will also save you from further hassles.
Selecting a list of trucking companies for shipment depends on the location, logistic needs, and mode of shipping. Optimization of all these factors leads to cost-effective shipping.
Lessons from the Army on Logistics