Blog Posts 3 Ways to Save Money on Transportation
Shipping costs hit an all-time high this year, and that’s significantly impacting the cost of everything from food to footwear. It’s the perfect storm: a growing economy and strong online sales are resulting in heavy demand for trucks while a severe driver shortage and rising diesel prices make those trucks more expensive than ever. In fact, the cost to ship “dry goods” has gone up nearly 40 percent in the past year, according to DAT Solutions.
Save on Shipping
Struggling to control your freight costs? Here are three areas to focus your efforts.
- Optimize distribution networks.The closer products are to your end customers, the lower your freight costs. Many companies are reconfiguring their distribution networks, seeking out a strategic combination of DC locations that will allow them to reach customers within two business days – or even faster – via lower-cost ground instead of expedited service.
- Utilize state-of-the-art systems. To further speed shipments, consider incorporating more robust technology. Integrated transportation management systems (TMS), shipment planning tools with predictive modeling, mobile communications and route optimization capabilities all help to increase efficiency and control costs.
- Cultivate your carrier network. Now is a good time to solidify relationships with carrier partners. Make it a priority to become a “shipper of choice.” Establishing strong relationships with a variety of carriers gives you the flexibility to choose the optimal mode/level of service for each shipment at the best price.
If strategies like these seem time-consuming or cost-prohibitive, consider partnering with an experienced third-party provider. With established carrier networks, top-tier technology, collective buying power and expertise in all aspects of shipping, they can help you to optimize your transportation operations to ensure peak performance and minimize costs.