In an economic era of perpetual uncertainty, coupled with consistent increases in shipping costs, it's incredibly vital to exploit as many action plans as possible to lower freight costs. Fortunately, the number of viable strategies to do this may be more abundant than you realize.
Examine Your Supply Chain
One of the key aspects of supply chain management is possessing a meticulous understanding of how and where goods are shipped at every stage of the delivery. Just as important is constantly being abreast to any changes in the supply of products. As a result, administrators must carefully analyze every facet of product delivery to determine supply inefficiencies.
To summarize other researchers' findings on the topic, some of the most common problems in a supply chain include poor accountability, short-term hazard management, improper or rushed implementation of new technology or systems, and inadequate reactions to a crisis on the part of management.
Diversify Your Transportation Routes
Sometimes allowing for a more prolonged shipping time due to a different transportation method can be an effective means of saving money if you plan ahead sufficiently.
For example, while airplane transport is faster, the cost of freight per weight and size is generally cheaper when transported via ocean liner. That said, there are notable exceptions wherein air travel might be more affordable depending on the location the freight is being delivered to. Factors which contribute to this include steep warehousing fees which certain seaports charge, offsetting the savings of shipping using an ocean transport.
Consider Shipping on Days Which Are Off-Peak
A common problem with high-volume days is the inevitable traffic jams, and other sources of time delays, which result from multiple freight transport vehicles being in operation at the same time. Efficiency can be markedly maximized by shipping goods on off-peak days or low-volume hours, thus resulting in a considerable amount of money saved. In fact, this strategy can yield savings as high as 10-20%.
This tactic is particularly advantageous for those in the industrial hardware space, as certain time constraints such as product spoilage is not an issue.
Consider Shipping on Days Which Are Off-Peak
A common problem with high-volume days is the inevitable traffic jams, and other sources of time delays, which result from multiple freight transport vehicles being in operation at the same time. Efficiency can be markedly maximized by shipping goods on off-peak days or low-volume hours, thus resulting in a considerable amount of money saved. In fact, this strategy can yield savings as high as 10-20%.
This tactic is particularly advantageous for those in the industrial hardware space, as certain time constraints such as product spoilage is not an issue.
Consolidate If Possible
While perhaps a bit obvious, this strategy is still nonetheless worth mentioning. By collaborating with other firms and joining a consolidation program, you’ll save considerably. In fact, some sources report that standard LTL shipping rates can be reduced by more than 20% when freight is shipped cooperatively.
Vendor consolidation is one of the most effective ways to consolidate and save, and partnering with Austin makes it easy. We’ll work with you to insure all the parts you’re buying from us are stocked at the location nearest your facility, so you never have to pay multiple freight charges for a single order. We’ll also help to develop a plan to limit releases to as few as possible based on your needs, further consolidating the number of shipments you receive. Plus, if there are any parts that you’re not purchasing from us, or need help sourcing, let us know. We’ll do our best to find those parts at competitive prices and add them to your program. Some customers may also qualify for our Able II Vendor Managed Inventory program which includes barcode scans, custom labels, consigned or non-consigned inventory, and much more. There are volume requirements but if you qualify a VMI program offers even greater opportunities for consolidation and savings.
Be Aware of New Developments in Tech
Granted, flying delivery drones haven't been developed to the point of implementation, let alone met regulatory approval. However, this doesn't mean that other forms of freight delivery aren't right on the cusp of being able to see full-scale deployment.
For example, autonomous trucks are already being used to a limited degree to ship heavy industrial products like smart refrigerators across the United States. Although still somewhat in a testing stage, the near completion of the 5G network in both North America and Europe means that these self-driving shipping vehicles (along with other tech innovations) are sure to take off and reduce shipping costs. To quantify the effects of autonomous shipping, this advent technology is projected to produce to $300 billion in savings.
