Businesses are always looking for ways to streamline their operations and cut down costs. However, enterprises, especially SMEs spend a substantial share of their budget for freight shipping. Since shipping costs are unavoidable and have a direct impact on customer experience, companies find it difficult to cut corners.  A recent study states that unexpectedly higher shipping cost is one of the major reasons shoppers abandon carts. And that is why companies are searching for smart solutions to reduce shipping costs.  Freight quotes are calculated according to a few factors such as how quickly the items need to be delivered, pick up and drop off locations, weight and dimensions of package, special handling and associated fees. Implementing some simple changes in your shipping strategy will help you optimize the process and get the best rates on shipping your freight. 

1. Know your industry

Do a detailed research to stay up-to-date on the latest trends in logistics and transportation industry. Learn the lingo so that you can familiarize yourself with the carrier’s business. There are a number of carriers in the industry and you need to negotiate with multiple carriers to find the best deal. Understand the shipping tariffs, taxes, regulations and carrier’s liability in detail, as they apply to pricing. 

2. Evaluate different modes of transportation

As you may already know, there are three primary ways to ship your freight - by road, air, and ocean. If you are shipping products to foreign countries, then sea freight transportation would be cheaper. When it comes to localized shipping, the best choice would be rail transport. Evaluate your transportation modes according to the freight type and delivery time duration. The smartest way is to opt for a hybrid mode where you can utilize a combination of air, sea and railroads. 

3. Consolidate your shipment

Freight brokers and carriers often receive multiple goods to the same destination. You can make the best use of retail consolidation to cut down on shipping and packaging costs. All you have to do is  combine your LTL (less than truckload) freight goods with other companies that are shipping to the same distributors and retailers.  Visit the local Chambers of Commerce offices or consult a third party logistics (3PL) provider to discover suitable shipping partners in and around your vicinity. 

4. Ship more, less often

Instead of shipping small orders frequently, it is recommended to ship or buy in bulk so that it helps reduce freight costs. Offering incentives or special deals to customers will encourage them. No matter whether you are a B2B or B2C business, the same concept holds. 

5. Take smart decisions

When it comes to packaging and shipment, think smart. For instance, you may choose to ship non-consumer type and non-perishable goods during off-peak days such as Friday or Monday. Changing your freight shipping schedule to a day earlier or later will help  yield adequate savings. Packaging is another important aspect that accounts for the smallest segment in the logistics and supply chain. However, it has a direct impact on transportation management and warehousing hosts. Make it a point to design packaging with freight efficiency and optimization in mind.  

Every dollar saved in freight shipping costs can contribute to the business’ bottom line. Hence make sure to think outside the box and implement some smart strategies to reduce unnecessary costs and get the best value for your money.