Reducing Freight Costs

Any company that has to move large or expensive products know one of the hardest hitting columns in the expense sheet is the freight and shipping expenses. But for any organization to obtain a steady level of growth a strong shipping infrastructure must be in place. Businesses should truly understand their costs – per pallet, per sku, per order shipped, and per truck load, the list goes on and on. When breaking down all that goes into logistics and inventory there seems to be a thousand ways companies can reduce freight costs but too often the thought of plowing through all that data seems overwhelming. And companies fall back on the old mantra, “If it ain’t broke, don’t fix it”.  

At CostFixed, we understand the unique challenges that freight and shipping services present businesses. We understand while these services are expensive, many companies fear to negotiate their rates, for fear of losing the quality of service they currently enjoy. That’s where CostFixed’s team of experts come in. We take an indepth look at both your inbound and outbound expenses to find way to reduce freight costs.

Reduce Freight Costs Without Stalling Your Business

With CostFixed, our team of experts understand the industry and know how to go about examining your expenses without any risk of you losing the infrastructure that makes your business tick. We take an in depth approach to understanding your business to help you reduce warehouse errors such as transportation costs, carry costs, and warehousing costs. Organizations should strive to implement lean principles to their business and workflow process, these principles include:

  • Value – Ask for feedback from your clients or your perform an in-house survey. Based on their supply needs or past business demands define your most valuable asset to your customers.
  • Value Stream – Work with your clients to identify their company’s value and reduce waste. To get started we analyze their processes against the types of waste listed below.
    • Transport  
    • Inventory
    • Motion
    • Waiting
    • Over-Processing
    • Overproduction
    • Defects
  • Flow – Establish a steady flow and strive to attain balance between your supply and demand needs.
  • Pull – Start producing based on demand.
  • Perfection – Continuous mechanics or tools must be established for example PDCA (plan–do–check–adjust)

There’s no commitment to get your free analyses, we start with a simple kick-off call to better understand your company’s needs, and go over how we have helped similar companies in the past. After agreeing to work with us, we take an indepth look at all your relevant bills, work with your current vendors, check for contract issues, and negotiate on your behalf for better terms.

Inbound Freight Cost Reduction

We develop a roadmap that pinpoints opportunities to reduce your inbound freight expenses, access management info, and improve control. We go beyond just finding you savings in errors or surcharges, we assist you in making the process easier by enforcing compliance, freight bill audits, and management reporting.

Outbound Freight Cost Reduction

With more and more business shipping each day do to online merchants DHL, FedEx, and UPS have made it even more difficult to reduce your freight shipping costs. While this may sound evil they do this to keep your shipping rates low for your customers that buy from you. However every time there seems to be an increase in rates, a wave of surcharge and incidentals seem to come crashing in. If your carrier rates seem to be negatively affecting your business, we recommend you contact CostFixed ASAP and allow us to take an in-depth look at your shipping statements to find hidden fees.

A Risk-Free Approach to Freight Cost Reduction

After our experts have had a chance to review your statements and work on how we will reduce them, we then present our findings to you. At this point, your company is still free to decide if they would like to proceed with the presented cost savings strategy, which means there’s no risk. Once you approve our findings we go to work implementing the strategy and measuring your saving and results by producing monthly reports. 

Contact us today!