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Do you have time to review your freight? Then we'd like to give you 8 tips on what to look out for.
1. Get useful statistics
Make sure you systematise your shipping data so that you can get a complete overview of your shipments - both incoming and outgoing shipments.
By keeping statistics on shipments and freight costs, you create transparency.
If your freight is concentrated on one carrier, focus on the costs that are relevant to you - and those you ship to.
2. Get an overview
Make sure you have an overview of all costs related to shipping in addition to the shipping price itself.
Surcharges and services added to the shipping price often make up a large percentage of the total shipping cost. It is therefore important that fees and freight rates can be broken down.
Without an overview down to the individual fees, it can be virtually impossible to compare your current carriers and any new ones.
3. Compare offers correctly
Comparing freight rates can be difficult and opaque. Virtually no two carriers are alike when it comes to offer structure, service and values.
When comparing shipping rates, always make sure to include all fees and not just look at the shipping rates. Fees make up a significant part of the total price of a shipment.
It's important to include all fees, as this often changes which carrier is the cheapest.
4. Evaluate the bottom line impact of your freight agreements
Many have received new freight rates this year, which are often only a small percentage increase. However, this can have surprising consequences for the bottom line.
By having a full overview of shipments, freight rates and fees, you can accurately calculate the impact of, for example, a 3% price increase on freight. Then you can see what that percentage increase means for your bottom line.
5. Focus on soft values
When looking for savings on shipping deals, it's important not to always be blinded by price alone.
Are there areas where your freight suppliers are strong or weak? Are your customers satisfied with the delivery they receive? It's not always the price of transport alone that determines the customer experience of a delivery.
Look at which carriers take your logistics to the next level. Parameters such as service, IT and drivers can play a role.
So be honest when comparing and don't always put price first, as there are hidden costs associated with switching carriers. We have compiled a list of important soft values to consider when choosing a shipping agreement.
6. Check if the freight agreements are set up correctly
Will having a load metre offer have a greater impact for you than a pallet offer? What will benefit calculation mean for your freight agreements? Do you need multiple carriers to cover specific areas?
Make sure to challenge and re-evaluate the offer structure you have today. Changes to an incorrect offer structure can often lead to savings on transport items.
7. Check your freight invoices
Get an overview of what you will be billed and how you will be billed for shipping.
Make sure you get invoice specifications to support your audit. Do it for your own sake - and for the audit.
Spot checks don't catch discrepancies and even the trained eye can miss discrepancies.
8. Optimise your flow
Systematise your freight so that you have an overview of the exact freight cost for a given shipment. Try to get an overview of what each recipient orders, how and how often they order.
You may benefit from changing the way you ship to customers, which will ultimately result in better logistics and economy for you - and for your customer.