Managing freight and it’s costs can be a difficult task, especially in a competitive environment where quicker transport options are cropping up. However, a lot of quick and easy solutions are just a gimmick and end up compromising on the quality of the freight forwarding service. We will continue to discuss freight cost efficiency, and how as a business owner you can opt for cost efficient freight while making a wise choice. Here are a few freight optimization tips to follow that can assist in making the right decision:
- Freight Optimizing Tip #1:
Straight Pooling Points- This means that the freight forwarding company will give you an option of picking up goods from one location known as the pooling point. From here, trucks will leave for their respective destinations, divided by geographical locations making an opportunity to lessen the transportation costs. Otherwise, trucks may be picking up freight in more than one lower than truckload vehicles and increasing the cost of the transport as well as wasting time. This works well for those who have relatively less freight load to be dispersed to different areas.
- Freight Optimizing Tip #2:
Choose the right freight mode -The business owners are the best judges of mode of transport will serve their purpose the most, however, it is the freight forwarding company that will provide them with the right information. It could be air freight, land transport or sea freight OR you could combine all different types for a more cost efficient solution. One of the tips that a good freight service provider will give is to choose a mix of transportation modes. Truckload and LTL can be used interchangeably, but it is conditional on the type and size of the load. Intermodal vehicles can also be used for this purpose, and this also reduces the overall cost.
- Optimizing Freight Tip #3
Regional Versus National Freight Carrier -Cost efficiency includes saving money as well as time. In that case, choosing a local freight forwarding transportation company will give better results than a bigger national level company. Bigger companies that transport all over the region can have lots of lag and delays as there is a large volume of freight being transported. This does not mean they are not efficient, but if you own a smaller regional business that does not necessarily require a large company, should opt for a smaller one.
- Optimizing Freight Tip #4
Time Management is Key -Do not wait for the last moment to ship out goods, and be more organized in managing time. This way you will not have to pay extra for expedited services and waste money on high delivery charges. You can communicate this to your customers as well, by providing them with a lower rate on more time of delivery. Air Freight can
- Optimizing Freight Tip #5
Awareness of External Factors -Weather, labor strikes, public holidays and such events can cause unnecessary delays in the transport of a freight, if one is not completely aware. It is important to keep in touch with the weather conditions, have a proper calendar with holidays marked out and of course, to be up to date with the economic, political situation of the region. A lot of times due to turbulent sea condition, sea freight in UAE faces a lot of delays, so one needs to be aware of any such nuances.
- Optimizing Freight Tip #6
Route Optimizing Softwares -Yes, these softwares are a reality and make life a lot easier. Always opt for a freight forwarding company in UAE that has the latest softwares to make the most cost effective route for you. These softwares are able to give latest updates on routes and make route plan that will be customized and optimized to suit the clients requirements.
So, these were a few tips and tricks to keep in mind when making a transport route plan or hiring a company that will do it for you. Do you have any more creative ideas on how to optimize the best freight route in order to reduce costs? If yes, let us know in the comments!