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Are you losing too much profit on shipping costs?

By 17th June 2015August 11th, 2022No Comments



Posted by:
Gillian Gibbon

If you work in retail, distribution and manufacturing, then you’ll agree that carriage is a huge cost to your business, adversely affecting your competitiveness and profit margin. The good news is that it’s an area where significant savings can be made if you know where to look. I’ve helped companies make savings of up to £160k per year on carriage alone.

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. As always, it’s far better to seek independent advice.

However, in this complex area there are some things you can do to bring down your shipping costs. Here are a few suggestions:

  1. Go direct – Check whether you are dealing with the under-writing carrier directly or working with a third party. The benefits of dealing with a third party may not justify the extra layer of margin you have to pay for their services.
  2. Be clever with packaging – You might think that’s it’s the weight of your parcel that determines the cost, but many carriers charge based on volumetric weight. If you can reduce your shipping volume you can bring your charges down. Ensure that you’re using the minimum amount of packaging, while keeping your product secure.
  3. Small is beautiful – Anything that’s over 120cm in length is classed as ‘oversize’ and automatically has a higher price tag for shipping. Most carriers will charge a high handling charge for oversize items, even if the item is very light. Avoid packing too many items into one package and if you ship high volumes of large, awkwardly shaped products then you should definitely seek out a specialist carrier.

These suggestions are just some of those covered in my report: Eleven Ways to Save Money on Carriage and Logistics. You can download the report here.

I’ve worked with many companies to significantly reduce their carriage costs while ensuring essential levels of customer service are maintained. As independent consultants, we combine our industry-wide experience with your business objectives to find a solution that’s right for you.

If you would like an objective, independent view of where you can save on your logistics and shipping, contact me by phone or email for a 20 minute telephone review of your carriage costs. Just call or email to book and we’ll discuss your business and where you can cut fuel costs today.