By the year 2040, about 95% of all purchases will be done through e-commerce shopping. When starting a new business, this is important to keep in mind because it means you need to plan for this trend.
To set your new business up for success, you need to understand and develop a comprehensive freight management plan. This will ensure you have an optimized and efficient logistic plan in place.
Keep these four tips in mind when setting up your shipping department.
1. Plan Well in Advance
Freight shipments routinely experience long delays. The best thing you can do is to ship your products as soon as possible. This will give them plenty of time to get to their destination.
Planning ahead allows you to shop around for the best-priced shipping options. You can avoid having to pay expedited charges and guaranteed delivery date fees. It also helps you to avoid breach of contract fees that could incur when your shipment arrives late.
2. Create and Build Relationships
While it’s essential to shop around, don’t carrier hop. The freight carriers like to know what kind of volume they can expect from their shippers. They can’t do this if their clients constantly hop from one carrier to the next.
If you develop a relationship with a particular carrier, you can secure lower volume rates. They’re also more likely to work with you or go out of their way for you. This could mean waved fees or special treatment when shipping times are backed up.
3. Automation Is Your Friend
Embrace technology and automate as much of the shipment management process as possible. Shipping software will help you effectively track all of your shipments and their cost. It will reduce your time spent managing shipments.
This means reduced supply chain costs and increased productivity. You can also program your software to communicate updates with your suppliers and customers. This ensures everyone has the latest information and reduces your time spent communicating this information.
4. Determine the Most Efficient Transportation
The best way to save money is to find the most efficient way to get your products where they need to go. Faster delivery also makes your customers happier, which encourages repeat purchases.
Start by optimizing your packaging. It should be quick to assemble, affordable, and protective. The less volume it takes up and the less it weighs, the lower your shipping costs will be.
The next step is to determine the best delivery route. The shortest and safest route will be the most beneficial for your bottom line. You can work with a logistics firm, or you could buy your own trucks for local deliveries.
There are several box truck financing options that require low or no upfront costs. You could even arrange for a seasonal program to match your demand.
Become a Pro at Freight Management Logistics
With these critical freight management tips, you’re ready to start better managing your freight shipments. You’ll be able to optimize your current processes while also reducing your overall operating costs. This will set you up for growth in the long run.
Browse our other articles to read more tips and advice to make your freight and logistics run smoothly so that your business can grow.