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Cost Reduction
Other than negotiating a more aggressive pricing program with your carrier, how many ways can you think of to reduce transportation/logistics costs?
- Establish a pricing program which can be administered easily and accurately (reduce/eliminate billing errors).
- Combine many smaller shipments into fewer, but larger shipments.
- Limit the carrier's risk by accepting some of the risk (limiting the value of your goods in the event of loss or damage).
- Use proper and adequate packaging (reduce/eliminate freight damage claims).
- Properly label the goods (reduce/eliminate freight loss claims).
- Complete the bill of lading accurately and completely (correct paperwork saves money).
- Minimize inventory and the associated carrying costs (use a carrier who can offer fast and reliable transit times).
- Whether shipping or receiving, count/check/sign for your freight properly (miscounting freight costs customers and carriers money).
- Pay freight invoices timely (paying beyond the tariff/contract terms increases the total cost a carrier incurs to handle your freight).
- For expedited/guaranteed services, don't spend more than you need to (guaranteed ground services can meet deadlines and cost less than air services).
- File claims timely.
- Don't delay international shipments with incomplete documentation.
- Utilize carriers' information systems free of charge (800 voice response systems, web sites, dial-in services, etc.).
- Don't utilize more carriers than you need (improved efficiencies can be realized by both shippers and carriers).
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