Freight transportation services can be a significant cost for many companies across the marketplace. The cost to transport goods across the country rises each year, and firms must ensure that they make every effort to minimize these costs moving forward. To help guide operations in reducing their transportation expenditures, we’re highlighting the keys to minimizing freight costs in this latest post.
It’s important to take into consideration the unique costs involved in each mode of transportation. For example, shipping freight transportation services via rail are often more cost-effective than shipping via truck, but there are unique restrictions in terms of freight size when shipping by rail, and so effective review policies are required to ensure the right mode of transportation is chosen.
Make sure that your logistics process allows your team to consolidate their stops within the same region. Companies often overspend on due to having their freight shipped back and forth between the same region without considering the total travel costs. Try to combine goods traveling towards the same area as part of the same shipment to help minimize overall costs in the long-term.
A leading reason so many companies are overspending on their freight transportation services is that they don’t take into consideration damaged or lost goods. Goods can be damaged at various stages of the logistics process, from the warehouse to the roadway, and it’s important that you book comprehensive insurance services to ensure you receive protection for your goods as well as compensation should goods be lost or damaged. Work with your service provider to review insurance options.
Automation is now one of the most efficient means of taking on various operating processes. Companies across the freight transportation field are now automating their services to minimize workload and ensure resources can be allocated more efficiently. For example, companies might automate the filling out of often-used forms to minimize the administrative work and the time involved in cross-border transportation.