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. Procter & Gamble put the first factor into practice and saved money. They eliminated freight costs by saving carriers' time and this saved money. By providing incentives for their customers, P & G eliminated long waits for unloading and got their trucks turned around in two hours. This resulted in happier drivers, turning the carrier equipment around faster and reduced hours of hand unloading and counting. Wasted carrier time could be turned into productive time and hence reduced freight rates.
2. Xerox eliminated deadhead miles and carriers rewarded them with low per-mile rates. How did they do it? They used an old trick started in the 1980's called continuous moves.
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. Perform routing and consolidation. Face it, doing routing or consolidation manually is not optimal. Again, there are systems that are so much better at that. Let them do it. It will save costs and on average reduce freight rates.
Transportation | Warehouse Optimization has worked with the best of the best. Procter & Gamble, and other Fortune 50 companies are among their client list. More importantly, P & G is a long-term client (since 1992). Transportation | Warehouse Optimization has saved them millions of dollars with expert transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and like good consultants do, keep the client as the top priority. Contact them at www.TransportationOptimization.com today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. - 15246
1. Procter & Gamble put the first factor into practice and saved money. They eliminated freight costs by saving carriers' time and this saved money. By providing incentives for their customers, P & G eliminated long waits for unloading and got their trucks turned around in two hours. This resulted in happier drivers, turning the carrier equipment around faster and reduced hours of hand unloading and counting. Wasted carrier time could be turned into productive time and hence reduced freight rates.
2. Xerox eliminated deadhead miles and carriers rewarded them with low per-mile rates. How did they do it? They used an old trick started in the 1980's called continuous moves.
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. Perform routing and consolidation. Face it, doing routing or consolidation manually is not optimal. Again, there are systems that are so much better at that. Let them do it. It will save costs and on average reduce freight rates.
Transportation | Warehouse Optimization has worked with the best of the best. Procter & Gamble, and other Fortune 50 companies are among their client list. More importantly, P & G is a long-term client (since 1992). Transportation | Warehouse Optimization has saved them millions of dollars with expert transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and like good consultants do, keep the client as the top priority. Contact them at www.TransportationOptimization.com today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. - 15246
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 consults with companies such as Procter & Gamble and BP and many other CPG companies. They can help you reduce freight rates and save money.
