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Business Management 10 ways to reduce truckload freight rates and save money-Part 1
Business Management 10 ways to reduce truckload freight rates and save money-Part 1
| 10 ways to reduce truckload freight rates and save money-Part 1 |
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| Written by Tom Moore |
| Monday, 26 January 2009 10:16 |
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Reducing freight rates is a key way of saving money in the industry. We are going to look at the top ten ways to accomplish this goal. In part 1 of a two part series, we will look at this specific concern in the shipping industry and find the best way to reduce freight rates. 1. Eliminate costs for the carrier and share the savings. It seems obvious: if you save the carrier time and money, you will reap the benefits. For example, Procter & Gamble eliminated the long waits for unloading by providing the customers an incentive to get all trucks turned in two hours. By eliminating hours of hand unloading and counting, carriers turned their equipment faster and had happier drivers. A win for the carriers resulted in a win for P & G and the end result was reduced freight rates. 2. Xerox eliminated deadhead miles and carriers rewarded them with low per-mile rates. How did they do it? They used an old trick started in the 1980's called continuous moves. 3. Fuel surcharges are favoring the carriers at the expense of shippers. The surcharge is based on fuel efficiency (mile per gallon) far lower than the carrier actually achieves. Carriers also pocket the difference between actual fuel costs and the DOT retail price - which may be quite a bit higher. 4. Use software technology whenever possible. It can do away with the administrative work that takes a lot of time. And administrative time is a hidden part of the total freight rate. Eliminating administration can therefore reduce freight rates. 5. Routing and consolidation are other administrative tasks that can be handled well with systems. Doing this manually no longer makes sense. Systems can handle this much more efficiently. They can both reduce time and save on freight rates. Transportation | Warehouse Optimization has worked with the best of the best. Procter & Gamble, and other Fortune 50 companies are among their client list. More importantly, P & G is a long-term client (since 1992). Transportation | Warehouse Optimization has saved them millions of dollars with expert transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and like good consultants do, keep the client as the top priority. Contact them at www.TransportationOptimization.com today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. About the Author: Tom Moore and his associates at Transportation l Warehouse Optimization will help you reduce freight rates and save you money. Transportation l Warehouse Optimization consults with companies such as Procter & Gamble and BP and many other CPG companies. They can help you reduce freight rates and save money. Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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