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Hire Freight: 5 Tips To Reduce Costs

The conscious management of costs and the development of long-term strategic planning are the main pillars in defining the cost reduction targets to hire freight such as cowtown express. Having a thorough understanding of each step of the company’s logistics process is also essential. Your business can differentiate itself from its competitors by constantly improving and identifying the best opportunities for hiring freight.

To ensure the satisfaction of its customers and still keep costs low when hiring freight such as cowtown express, the Shipping Center has developed 5 special tips. They can be very useful when planning the best strategy to deliver more, spending less.   Let’s go to the tips?

Win Partnerships With Multiple Carriers

It is much more effective to close partnerships with multiple carriers, which can benefit different needs in transportation services. When establishing partnerships, the company must be prepared to offer discounts or easy payment terms.

In some cases, it is possible to gain partners to speed up deliveries in specific regions, where direct access by the company would be impracticable. In addition to being a good cost-cutting strategy, by transferring the service to third parties, the company can also increase the volume of deliveries and reduce service time, generating a competitive advantage.

Concentrate Stock

There is no doubt that stock concentration speeds up deliveries. For a more effective result, it is essential to assess market demands, avoiding surplus products, which compromise revenue growth. Maintaining high levels of stock is economically unfeasible for any company.

An efficient alternative is to automate and centralize all storage information. This reduces costs due to errors and is an excellent way to establish assertive sales strategies.

Map Shipping Costs

Carrying out the mapping of freight costs is essential when reducing expenses. Calculating the average shipping cost per month helps you compare shipping costs in different regions.

In this way, it is possible to identify precisely where the freight cost is higher or cheaper. Strategies focused on this data can also be developed, requiring a minimum value for closing orders or the offer of a discount on the freight price, depending on the customer’s region.

Work With Delivery Schedules

Just as routes with few orders increase transport value, delivery attempts that are not completed also influence freight costs.  The best thing to do is to offer customers the option of scheduling deliveries, which enables the optimization of routes and avoids reverse logistics. The customer gets an exclusive service, generating more revenue and reducing risk.

Use Air Transportation Only As A Last Resort

Even though the delivery time is the key factor for the company’s competitive differential, air transport has high costs, which make its use constantly unfeasible.

Thus, the manager needs to analyze the situations in which air transport is the most suitable modality. For example, for the delivery of express packages, with less than one-day deadline, or in emergency orders, where there is a risk to the life of someone who needs the product.

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