Small business owners often assume that the strategies and options that are effective for large business will not work on a smaller scale. While this is true for some aspects of business, the same techniques can be used by companies of all sizes to help to get the best possible freight rates for goods shipped out or raw materials and goods shipped in.
There are three specific ways that any small business can improve their current freight rates, particularly if they are contracting with multiple freight companies or if they have a substantial amount of incoming or outgoing loads.
Go With a Pro
Mid to large sized companies often turn over their shipping to third party logistics providers. These are specialized companies that negotiate the best freight rates and also work with help you to improve efficiency, cut shipping costs and streamline your supply chain and logistics needs.
Small companies can also take advantage of these services. Not only does this eliminate the need to have a fleet but it also reduces the need for an in-house logistics team.
Consider Routes and Delivery Schedules
Often delivery routes and schedules evolve over time and as the shipment area increases. This is often done on an as needed basis, which can create a lot of inefficiencies on a route that adds to freight costs.
By taking a closer look at delivery services and restructuring routes and delivery options it may be possible to eliminate some routes and streamline the rest for additional cost savings.
Eliminate Accessorials
Most trucking companies, and particularly the LTL freight services, charge low base rate but then add a lot of ancillary charges or accessorials. These can include costs for delivery confirmation, inside deliveries, fuel surcharges, and other factors.
Using a 3PL provider will give you additional leverage as a small company to avoid these types of additional costs or have them waived through the 3PL relationship with the freight company.
