Shipping and freight can be one of the most expensive parts of running any type of production or warehousing facility, but it's a necessary expense for such facilities. Customers need to have their products delivered on time and in good condition, or you'll lose those customers very quickly. That being said, there are many ways to save money on shipping and freight costs which are often overlooked by managers and owners. Note a few of those here:
1. Use the smallest packing possible
Freight and shipping costs are usually figured by weight and by size, which means you need to use the smallest packing possible. For items shipped on a pallet, invest in a pallet wrapping machine. This will wrap your product in shrink-wrap so that it's protected, and it will also take up less space than cartons and crates. This also reduces the weight of the shipment, and reduces the cost of packing insulators such as foam peanuts.
For smaller items, remember that boxes are not the only choice you have; consider padded envelopes, tube mailers, and even plastic bags. These are usually smaller and lighter so that you can save on each shipment, and even if that savings is small per shipment, it will add up over time.
2. Check your shipper's cargo insurance
Cargo insurance is the coverage that reimburses you if your cargo is damaged or stolen while in the custody of a freight company. You don't want to skimp on this coverage, but it's good to check with your freight company to see how much coverage they provide. If it's more than the value of your cargo, you might negotiate with them to have this reduced. If their premiums are lowered, they may pass this savings on to you.
3. Be sure you're being charged LTL rates
LTL refers to less than truckload, and this is a reduced rate for shipments that don't take up the entire cargo area of a delivery truck. Because your shipper can fit cargo from other customers on the same truck, they charge LTL rates to each customer. If you only ship a few pallets at a time or don't fill up the entire cargo area of a truck, check to ensure you're being charged LTL rates. You may also want to weigh your own cargo on occasion to ensure that you're not being overcharged if your freight company charges by weight. Always check that you're getting charged the right amount for the size and weight of your shipment.
For more information, contact a company like Star Freightlines.
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