How to reduce Freight Charges?
Centralize freight movement in your organization. Instruct all departments to route inbound and outbound freight through this central point. This will enable you to get a clear picture of the amount of freight transported and expenditure incurred.
Choose transport management software that best suits your organizational needs. Automation of freight movement will enable you to periodically review, analyze and evaluate your freight charges. You can use the data to make any necessary changes.
Conduct an audit of freight movement every month. Classify all the packages by weight and rate paid to the freight carrier. Make a list of places in order of the value of freight sent or received during that month.
Ask your suppliers, especially those within the country, to refrain from sending duty delivery paid products. Request the suppliers to send separate bills for product and freight. This will help you avoid the additional burden of handling charges and surcharges.
Make a list of the fast moving products in your organization once every three months. Order these products in bulk from your suppliers to avoid placing urgent orders that inevitably increase the freight cost.
Weigh and classify the shipment in your premises before handing it over to the freight carrier. Make sure that you have a copy of the classification system followed by the freight carrier. You can avoid additional expenditure due to any discrepancy that might be found by the transporter.
Negotiate with your carrier for special pricing on freight to frequently shipped locations. Work out a long-term deal with the carrier to ensure that you are not affected by increases in fuel charges.