3 Ways To Easily Reduce Freight Costs


There are many components a shipper should consider when it comes to freight rates and carriers. Reducing costs begins with understanding how cargo is moved through a supply chain and with lack of proper knowledge, tools or expert help, a shipper could leave money on the table.

By getting all parts working efficiently, shippers can mitigate and manage costs. The following is a guide that provides 3 ways to easily reduce freight costs:


1. Consolidate Freight: The method of consolidation has been proved to be tried and true for the past 50 years; this method works. A shipper can consolidate shipments and in doing so, give smaller order shippers the opportunity to minimize costs while reducing time and handling. For example, a shipper could consider sending fewer, larger shipments or combining their freight with other shipments. In fact, a lot of trucking and shipping companies are choosing to go green nowadays, therefore, less shipments is an added benefit which is great for the environment.


2. Get a Carrier Discount: When processing a freight shipment, it is always worth asking about additional discounts from the carrier. Consider base rates when negotiating and comparing discounts from carriers and keep in mind that a smaller discount from a lower rate carrier could be more beneficial than a larger discount from a higher rate carrier.


3. Prepare an Outstanding RFP: An outstanding and congruous request for proposal (RFP) will help create a profitable and effective supply chain. Imagine how a carrier will react to your shipper profile and request for proposal; Is there sufficient information about your requirements? Is all of the data pertinent? Take some time to help carriers understand what kind of freight you want to ship and what the details of hauling are.



Third-party logistics companies offer knowledge in explaining these costs and reducing additional costs. Millennium Logistics Management is unlike your typical logistics service provider. Regardless of the service (Truckload, Less than Truckload or Airfreight), Millennium does not just secure a truck to service your shipment. They manage it from time of pickup until it is delivered when you expect it. Don’t hesitate to contact us to find out more about our services.



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