3 Easy Ways to Lower and Discount Freight Costs Author: Jared Fisher
September 01, 2011

By closely evaluating your business’s shipping and distribution patterns, you may identify many areas that you can easily discount freight costs.

Below are 3 simple practices that will allow you to effectively assess your current practices, and help you identify areas for improvement.

Logistics Reporting

Logistics reporting is essential in effectively evaluating the efficiencies of any businesses’ distribution practices. Through creating detailed reports that track each step of the shipping process, a qualified freight auditor can easily identify potential ways to discount freight costs and create smart solutions to making your shipment practices more cost effective. Reporting entails tracking details of your carriers’ performance for all shipments, and may include itemizing packages awaiting carrier retrieval to help evaluate when utilizing a less expensive service may be preferable in the future.

Logistics reporting is a simple and effective way to track the progress of your shipments, and also track your savings over time.

Evaluate Next-Day Air Shipments

Both UPS and FedEx charge a premium for packages sent via overnight delivery. However, if you have a shipment that needs to arrive to another location within a 150 mile distance, it is highly likely that shipping via Ground delivery will be just as effective in ensuring that your package arrives by the following day. Shipping via UPS Ground versus UPS Next Day Air can amount to a significant freight discount.

While your package will not be guaranteed to arrive by 10am the next morning, your package is guaranteed to arrive at its final destination by end of day. Through considering and evaluating your actual needs in delivering packages via Next-Day Air, you may find that shipping via Ground delivery is a better alternative and an equally effective way to discount freight costs.

Research Discount and Rebate Programs

Both UPS and FedEx offer rebates and discount programs to help attract and reward customers. To evaluate which freight discount program is right for your business, it is important to read the fine print before selecting a carrier – as discounts and rebates typically vary depending on the frequency and type of shipments your business needs to effectively operate.

It is easy to get quotes from different carriers and compare – it’s just important to do your homework before you commit to a carrier. Source Consulting specializes in applying these practices to your business, to help identify freight discounts that will reduce your shipping costs dramatically. As logistics consulting specialists, Source Consulting applies relevant cost recovery and cost reduction services within the shipping industry. Contact Source Consulting for a free consultation today.

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