Reduce the Freight Cost What Should We Do In the Transportation?
Freight costs is a large portion of the goods value, as your company grows, your operations will evolve alongside it, you’d better looking for cost-saving options, such as saving the cost from transport. Whether you’re shipping internationally, nationally or both, it’s important to do your research and find the best options for you and your company. How to reduce the freight cost and save your time? And here are some tips for you.
1.Choose a good transport channel.
This will depend on the type of goods and services you’re transportation and the travel distance, however it’s important to know which will be most cost-effective. Ocean shipping is often cheaper than air, especially if you’re shipping internationally. If you’re shipping closer to home, rail is typically less costly than trucking. Knowing transportation costs will help you to understand the best choice for your company based on budget and deadline.
2.Arrange a good shipping time.
Arrange shipment during off-peak hours or days of the week, peak season and off-peak season freight maybe have 40-50% difference. For example, an air cargo from Hong Kong to Los Angeles if off-peak season is US$2.4/KG, but in peak season may rise to 4.5/KG or more expensive, but normally air shipment is the urgent shipment, we can’t avoid the peak season, for ocean shipment you can against your specific needs to choice a better shipment time.
3.Make a good consolidation solution
Consolidating goods or services from multiple suppliers in one country might cost you a bit more time in transportation; however, it might be worth it from a costs standpoint. Many smaller shipments, or less container load shipments (LCL), can also be consolidated into larger shipments, or full container loads (FCL) to provide additional cost savings.
4.Supply chain visibility
You need familiar each level of your transportation chain from supplier to customer will help you to better pinpoint inefficiencies and cut excess costs. For example, you can learn some import and export and export operation process. As well, you’ll be able to react more quickly to problems as they are occurring, saving you time and money in the future.
5.Be sure to understand international outsourcing costs
If you’re shipping goods or services from overseas, you could end up facing a variety of costs including duties, brokerage, carrying costs and more. What might have started out as the least expensive option is now rising your freight costs. Buying inventory closer to home might be a more cost-effective solution for your company.
Freight costs are a significant part of your company’s expenses, so it’s important to keep the above 5 tips in mind to maintain your competitive edge in your market. Another way is choice a good third party logistics company to help you to make the best solution for your shipment, so you can get focus on doing your job.
Choice Freight Best choose success.
Ivy Luo. C/S manager
Tel: 0755-21018307, Mob:13590218500