Freight costs eat into the bottom line of almost every company. Every dollar spent on freight can equal $20 or more in sales, so if your company can save $100,000 in freight charges that can equate to $2 million in sales.
What with fuel costs on the rise and the economy starting to rebound, shippers will undoubtedly see freight cost increases in the months ahead. But there IS something you can do about it.
If you haven’t re-bid your freight business for a while, now is the time to do so. Here are a few tips on what you should do:
Step #1: Develop a strategy. What are you going for? Lower rates? Better service? How do you know if your rates are already low, or if there are opportunities to reduce costs? Many shippers have been surprised by a “backfire” when they negotiate rates that are already competitive as responding carriers (even the ones they already use) come back to them with higher, not lower rates. Be careful with this — it’s a good idea to do some freight …