Any entrepreneur or brand that is in the business of providing goods to consumers, is familiar with the careful process of budgeting. The cost to make a product is, after all, only one half of the equation — packaging, transportation and shipping, marketing and advertisement, these are the other (equally critical) pieces of the ROI puzzle.
So the question becomes, how can business owners ensure they are still generating revenue and benefiting their bottom line well into the future? While there are a number of potential solutions, transportation demands special attention. Fortunately, with the right processes and transportation management partner in place, businesses can stack the odds in their favor. With this in mind, we’ve compiled a list of 5 things Canadian businesses can do to save on LTL with ease.
1. Take Advantage of Intermodal Shipping
For businesses that have the luxury of a few extra days of transit time, consider selecting intermodal shipping between Central and Western Canada. Intermodal transportation boasts lower (and more predictable rates), enhanced reliability and safety advantages, and it’s substantially more eco-friendly. Reducing the carbon footprint associated with shipping is, undeniably, an important mission for companies around the globe, and if it saves you money at the same time? Well, that’s a pretty compelling value proposition.
2. Lane Leverage
In the world of transportation and logistics, costs to the supplier are often increased substantially by poor inventory planning, choosing the wrong mode/carrier, or placing the product in the wrong location. To remedy this, businesses can work directly with their transportation provider to determine which lanes can be leveraged, to minimize miles.
Enhanced transparency between a business and their 3PL provider allows for the utilization of cross-functional planning tools and better, hands-on management of each stage of transportation. Based on your unique needs and service expectations, your transportation provider can choose the best mode and carrier and help you save on overall transportation costs upfront.
3. Freight Dimensions
Attention to detail can save you money. Before a shipment goes out, always remember to record your freight’s dimensions in inches and note this on your bill of lading. This simple measure ensures you avoid any conflicting information that could, potentially, result in miscalculated cubic dimensions. Why is this so important? Because those dimensions, if reported incorrectly, can quickly impact your freight cost in a negative way.
4. Volume Spot Quotes
If your shipment is 10 linear feet or more, call your supplier for a volume spot quote. The spot rate is the current market value of an asset at the moment of the quote. Most LTL carriers will charge a minimum of 1000lbs per linear foot (as of 10 feet of trailer), which also greatly affects the final rate.
5. Consolidation Opportunities
Remember, at the end of the day, freight moves freight. In many cases, there may be consolidation programs available for your product. With this in mind, speak to your transportation provider about possible consolidation opportunities with other vendors shipping to the same destinations. Although some vendors may refuse to share space onboard trucks with competitors, a reliable 3PL company can pro-actively manage this for you to ensure all vendors on board are receiving favorable volume economies that couldn’t be achieved in a single ship order. Further, companies who are the consignee for inbound orders from certain vendors can also manage this by changing the terms from “Prepaid” to “Collect” on all their inbound volume, with a 3PL team managing a consolidation program on their behalf.
Need help from dedicated transportation experts? Mactrans is a non-asset based 3 PL company equipped to find the most appropriate carrier, mode and shipping method to best suit your needs. Click here for more information.
