Shipping can be one of the most costly and complex activities for any small business. You need to plan adequately for your shipping to avoid overpaying on freight charges and prevent late deliveries that may lead to decrease in sales and destroy the company’s image.
1 .Obtain Discounts With Carriers
Nearly all carriers, whether freight, express, or parcel offer discounts to business that regularly receive or ship goods. Negotiation skills are essential when it comes to dealing with shipping companies. However, most small businesses will find it hard to obtain discounts since many companies offer discounts to companies that ship many goods. However, small businesses that are members of an industry trade association can be given discounts. Usually, industry trade associations are capable of combining the purchasing power of their members to negotiate better shipping fees for all their members.
2. Develop an Inbound Shipping Management Program
Changing your shipping modes is one of the easiest and simplest ways to reduce inbound freight costs. If you want to eliminate any handling charges and save money, deal with a supplier who collects goods from your recommended carrier. It is easy to save on small freight and shipments coming into your business every day when you have more control over your inbound shipping. Inbound collect shipping allows as a buyer and receiver to negotiate for discounted shipping costs.
3 .Use the Correct Mode & Service Level
Many small businesses find it difficult to choose the right shipping mode for importing their merchandise. Shipping mode options include intermodal, LTL freight carrier, ocean, small package, air, ground, and rail. Shipping companies consider various factors when assigning shipping modes to shipment including the freight destination, characteristics and weight of the shipment, fees and pricing, damage or loss concerns, and additional services required for special goods. Picking the right mode for your shipment will help your business make significant savings on your shipping expenses.
4 .Consolidate Orders
Consider combining several orders into one shipment. Plan accordingly for all your small orders to be consolidated into one sizable shipment instead of shipping small amounts of goods separately.
Transportation and shipping play an important role in business operations. However, shipping costs can sometimes make deep inroads into business finances. It is possible to minimize shipping expenses and reduce overspending on freight handling costs. This requires careful planning and management of freight handling as well as good negotiation skills and experience with dealing with shipping companies.