How to Reduce Transportation Costs in Three Easy Steps

Lower parcel price

Especially now that online shopping is starting to dominate the retail landscape, it’s likely that shipping is a big expense for more and more businesses across the U.S. Here are a few ways to start controlling transportation costs and more effectively managing your shipping department.

Shop Around for Shipping Companies
One of the easiest ways to reduce freight cost is shopping for the best freight rate. It can be easy to get caught up in the swing of things and focus more on operations than trying to find a new freight company, but it shouldn’t take long to do some research and compile a list of potential companies. Look at the service levels and prices for services and find a few that work for you.

Once you’ve found a few companies that offer the services you need, don’t be afraid to negotiate with them. You might be able to reduce freight prices even more by asking companies for discounts or lower rates if you add services. You don’t necessarily have to accept whatever rates they quote you. Companies will be willing to work with you, especially if they know one or more other companies are competing for your business.

Use an Online Management System
Another way to start reducing the amount you pay for freight is to use an integrated transportation management system, especially if you find one online. Human error can account for a lot of costly mistakes and confusion, which is eliminated by using a designated system. These systems also typically keep track of paperwork and important documents, which means that no one needs to file paperwork anymore or keep track of things.

Do you have any tips for controlling transportation costs? Let us know in the comments.

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