You want low-cost freight shipping, but you don’t want to risk creating headaches. While it seems simple, we all know that’s not always the case. Sometimes finding “the best deal” ends up with delayed shipments or incomplete deliveries. How? It’s when companies are so concerned about freight cost reduction, but don’t think through what effect it could have on the customer.
Good thing that’s not you! You’re here to learn how to negotiate freight rates without complicating logistics. Great! Instead of just worrying about low-cost freight shipping, you can use some tried-and-true ways to reduce transportation costs without having to sacrifice your service.
The good news is, when it comes to freight cost reduction, there are plenty of options to try.
Here are 10 tips on how to negotiate freight rates without complicating logistics:
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Ship on off-peak days:
Scheduling freight earlier or later in the week can grant you a freight cost reduction. For instance, Friday is typically an off-peak day for shipping consumer goods. Most retailers are hoping to get product into the store by Thursday to prep for weekend sales. However, with a little bit of planning ahead or rearranging work hours, they can significantly reduce freight costs by utilizing off-peak day shipping.
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Offer night pick-ups:
This is a similar concept as shipping on off-peak days. Adding in a little flexibility into your shipping times can help the price significantly. Using night pick-ups can help reduce transportation costs because you are giving carriers more options. By offering carriers the option to pick-up your load between 6 p.m. and midnight, it means they don’t have to turn down full-price loads in the daytime from other companies. They can then fill the backhaul with your freight. Allowing a carrier to fulfill daytime runs and then load up on the way back can be a cost savings for them and for you.
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Develop relationships:
It’s always a good idea to make sure you are getting the best rates you can. You don’t want to be so out-of-the-loop that you are not up-to-date on current prices. However, you also don’t want to just do a surface look at low-cost freight shipping and pick the cheapest option. Who do you think a carrier is more likely to give a discount to? A long-time customer or someone who pops in and out at random. Serial rate shoppers miss the chance to build relationships that can lead to a freight cost reduction.Are you looking to develop a lasting relationship? Awesome! The FSL team loves to form lasting relationships with our customers and finding them the best rates. Request a quote today!
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Longer term contracts:
Part of developing relationships is being open to sign some longer-term contracts. Signing a longer-term contract can be a mutually beneficial experience for both you and a carrier. You are locked in at a better price, and the carrier knows how to adequately plan for your loads to get to their destination.
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Work with a carrier relationship specialist for smaller loads:
When you combine your LTL shipments with other nearby companies shipping to the same locations, it’s a win-win. Yet, this can be challenging to come across on your own. Working with a company that handles carrier management on your behalf makes it a smooth process. For instance, FSL Group handles all aspects of LTL shipping for our customers, so we negotiate the carrier contracts, as well as track and report on carrier performance. It takes pressure off our customers so they can get back to what they do best.
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Increase delivery lead times:
Planning can go a long way in the supply chain…literally. When you can maximize assets for future loads, you can get a better price.
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Ship less often:
If a customer has 10 pallets to ship, it’s going to be cheaper to ship them all at once instead of just two pallets at a time. However, retailers lean toward smaller shipments more often based on their own needs. They might not want to have too much in stock. When you are encouraging them to ship less often, it’s important to explain to them the benefits or create incentives for them to potentially take on more inventory than they need.
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Check your packaging:
Occupied space is a big part of shipping cost. If you are looking to reduce transportation costs, reconsidering how you package can be a game changer. Are you curious where to start? Take a look at the space on the pallet itself. How much space is there between items? Think of it as a real-world game of Tetris. You score higher points if there are no spots left in a line! Same rules apply to what’s inside the box too. While you want to be careful you do not put too much in a box where the items inside aren’t safely packed, it’s worth a peek inside to make sure you aren’t wasting space.
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Reduce dunnage:
It’s common for products to require air bags, strapping, blocking and bracing to keep them safe during transport. While checking your packaging helps reduce your occupied space, so does reducing your dunnage. Of course, you want to keep your product safe, but you don’t need to go overboard with it either. Learn how to reduce dunnage, without increasing damage and you can reduce your shipping cost.
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Work with a professional:
Sometimes it’s not just about how to negotiate freight rates but finding the right partner to guide you through the process or finding the best rates on your behalf.
Conclusion
While there are a lot of techniques you can try to reduce transportation costs, finding a good partner can be the key to your success.
At FSL Group, we understand your desire for low cost freight shipping so that you can continue to best serve your customers. If you are looking for a full-service provider that can deliver your shipments on-time and on-budget, with the right carrier, right equipment, and right place, we are ready and waiting. Request a quote today!
