We all know how costly it can be to run a business. Salaries, benefits, facilities, utility costs are all on the rise and shipping can often account for a large portion of a company’s expenses. In the constant battle to reign in expenditures, making some simple changes can result in savings of, not just time, but money.
Transportation Options
While the most popular ways to ship items are by air and ground (which also includes rail), sometimes mixing these different transportation options will result in reduced costs. If your items are local, outsourcing your shipping to local trucking companies can provide even lower costs while improving delivery times.
Product Design and Packaging
Freight packaging makes up approximately 10% of a product’s cost, while warehousing and transportation accounts for roughly 25% and 60% respectively. Packaging intelligently will reduce the amount of space required; allowing you to ship in greater volumes and therefore maximizing savings when it comes time to ship. Consulting with your carrier regarding packaging requirements ahead of time will not only reduce costs, but it frees up more ‘real estate’ to increase the amount of cargo being transported.
Bulk Shipments
Depending on your business, it might be helpful to ask customers to place bulk orders. Shipping larger orders becomes more efficient as you can ship greater quantities less often. This strategy allows you to run a more profitable business by saving time and reducing labour costs.
Tariffs
When shipping internationally, it is vital to be aware of tariffs. Generally, an international logistics company will make you aware of tariff costs and non-tariff trade barriers. Knowing these costs will help you plan and budget ahead of time.
Consider Shipping Off-Peak
When scheduling shipments, you may want to consider off-peak days. While this may not prove practical if your cargo is perishable, other types of non-perishable freight may allow for more flexibility. By shipping on low-traffic days you can further reduce your transportation costs.
Choose a Reputable Shipping Company
There are plenty of freight shipping companies from which to choose, but selecting the right one can make a big difference. MGA International Logistics is an international shipping company, providing quality freight trucking services capable of safely transporting your goods. We invite you to contact our knowledgeable logistics team for further information, or to simply ask us for a no-obligation quote.
