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. By eliminating costs for the carrier you can share the savings. Procter and Gamble implemented this concept with the end result of reducing freight rates. P & G eliminated long unloading times by providing its customers an incentive if truck unloading was turned around in two hours. They did and it was a win-win for everyone. They shared the cost savings and everyone benefited.
2. Create continuous moves. In the early 1980's, Xerox started to send trucks on a tour that ultimately ended back at the origin. Xerox paid for every mile driven, and since it was able to keep the trucks loaded, they were rewarded with lower per-mile rates.
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 software technology whenever possible. It can do away with the administrative work that takes a lot of time. And administrative time is a hidden part of the total freight rate. Eliminating administration can therefore reduce freight rates.
5. Routing and consolidation are other administrative tasks that can be handled well with systems. Doing this manually no longer makes sense. Systems can handle this much more efficiently. They can both reduce time and save on 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.
1. By eliminating costs for the carrier you can share the savings. Procter and Gamble implemented this concept with the end result of reducing freight rates. P & G eliminated long unloading times by providing its customers an incentive if truck unloading was turned around in two hours. They did and it was a win-win for everyone. They shared the cost savings and everyone benefited.
2. Create continuous moves. In the early 1980's, Xerox started to send trucks on a tour that ultimately ended back at the origin. Xerox paid for every mile driven, and since it was able to keep the trucks loaded, they were rewarded with lower per-mile rates.
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 software technology whenever possible. It can do away with the administrative work that takes a lot of time. And administrative time is a hidden part of the total freight rate. Eliminating administration can therefore reduce freight rates.
5. Routing and consolidation are other administrative tasks that can be handled well with systems. Doing this manually no longer makes sense. Systems can handle this much more efficiently. They can both reduce time and save on 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.
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 PG and BP and many other CPG companies. They can help you reduce freight rates and save money.
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