How to save money in these economical times is the goal of any transportation manager in industry today. In the first part of our two part series, we are going to closely look at the ten ways in which you can reduce freight rates and save money. In this article, we will look at the top 5.
1. By eliminating costs for the carrier you can share the savings. Procter and Gamble implemented this concept with the end result of reducing freight rates. P & G eliminated long unloading times by providing its customers an incentive if truck unloading was turned around in two hours. They did and it was a win-win for everyone. They shared the cost savings and everyone benefited.
2. Continuous moves, an old trick started in the 1980's by Xerox is another way to reduce freight rates. By practically eliminating what is called deadhead miles, the carriers rewarded them with low per-mile rates.
3. Because most fuel surcharges favor the carrier, in the long run, work to get as close as possible to the carriers' actual fuel consumption and real cost of fuel. It will save you money.
4. Use systems to eliminate administrative work. Too much time is spent tendering loads and paying freight bills. This is work a system should be doing. Cutting administration is another way you can reduce freight rates.
5. Routing and consolidation are other administrative tasks that can be handled well with systems. Doing this manually no longer makes sense. Systems can handle this much more efficiently. They can both reduce time and save on freight rates.
Test your skills and see how efficient you are at managing costs by loading a truck or picking pallets in a warehouse. Visit www.TransportationOptimization.com. While there, ask for a call with one of their premier transportation consultants. Working for many companies in the top Fortune 50 like Procter & Gamble and BP, Transportation | Warehouse Optimization understand your unique problems and know how to solve them. - 15431
1. By eliminating costs for the carrier you can share the savings. Procter and Gamble implemented this concept with the end result of reducing freight rates. P & G eliminated long unloading times by providing its customers an incentive if truck unloading was turned around in two hours. They did and it was a win-win for everyone. They shared the cost savings and everyone benefited.
2. Continuous moves, an old trick started in the 1980's by Xerox is another way to reduce freight rates. By practically eliminating what is called deadhead miles, the carriers rewarded them with low per-mile rates.
3. Because most fuel surcharges favor the carrier, in the long run, work to get as close as possible to the carriers' actual fuel consumption and real cost of fuel. It will save you money.
4. Use systems to eliminate administrative work. Too much time is spent tendering loads and paying freight bills. This is work a system should be doing. Cutting administration is another way you can reduce freight rates.
5. Routing and consolidation are other administrative tasks that can be handled well with systems. Doing this manually no longer makes sense. Systems can handle this much more efficiently. They can both reduce time and save on freight rates.
Test your skills and see how efficient you are at managing costs by loading a truck or picking pallets in a warehouse. Visit www.TransportationOptimization.com. While there, ask for a call with one of their premier transportation consultants. Working for many companies in the top Fortune 50 like Procter & Gamble and BP, Transportation | Warehouse Optimization understand your unique problems and know how to solve them. - 15431
About the Author:
Tom Moore and his associates at Transportation l Warehouse Optimization will help you reduce freight rates and save you money. Transportation l Warehouse Optimization work with companies such as Procter and Gamble and BP and many other CPG companies. They can help you reduce freight rates and save money.
