Carriage and Freight Savings: An Independent Perspective
Some of the best project results that we are seeing at present are coming from couriers, freight, freight forwarding and fulfilment. Approaching these areas from an independent perspective is quite rare and powerful, and we know exactly where and how to release savings. We don’t replace the work that is done by the Logistics Manager, we merely extend on it with our knowledge
and influence in the markets.
A carriage company’s pricing structure is highly complicated, so it can be difficult to see where you can make savings. Asking the carrier for help is unlikely to yield the best results, as they are not going to be impartial. Here are three examples of areas to consider:
1. Review when there are changes in your business
Pricing for couriers and freight services will be based upon the carriage profile at your business. Therefore, it can be lucrative to reassess your pricing when any major changes take place in your business, from a volume or product perspective. Different carriers specialise in different profiles.
For example, keep an eye on:
● The average weight per consignment
● The dimensions of your consignments
● The volume of parcels per data
2. Keep an eye on market changes
Freight forwarding is often priced on the spot markets, and unless you spend many hundreds of thousands of pounds each year, then you are likely to be using a third party to organise the logistics.
We would recommend that you assess whether your third party is passing on any pricing benefits that occur through positive changes in the markets.
From an ethical perspective, we often try to work with third parties on an open book basis so that we can see how much profit they are making from our clients.
3. Review your pallet service
If you are using a palletised service, and maybe one that feeds into a national franchised pallet network, then there could be some cost savings attainable by a full audit.
Your business needs to ensure that it is using the best network for its profile based on sizing and weight, and the nature of products being transported.
Don’t be afraid of moving pallet services if necessary; even if your local franchisee provides a great service, the reality is that neither you nor they have any control over your consignment once it has left your local region.