Strategies To Reduce Inbound Freight Costs

Globalization has accentuated the world of networking. Add to that an increase in the whole interconnection of shipping worldwide accelerated by the pandemic and you have a tremendous rise in logistics and supply chain. Rates are rising at a faster pace, with companies increasing their shipping costs by almost 7%. This makes it a necessity to implement strategies that can help reduce transportation costs.?

The demand for goods is ever-rising and it becomes important to find ways of reducing costs and increasing profits. Thus, inbound freight costing becomes a priority for many businesses to smoothen their operations and streamline the process.?

Having spent over a decade working in this sector and building ProConnect to become one of the leading players in the industry, I would say that you have a set budget you want to work on, then consider using different ways to cost-cut your inbound freight transportation. This helps you regulate the whole process while ensuring all extra costs you bear are removed from your expenses.

Additionally, here are some strategies that help us navigate through the finances and help reduce inbound freight costs:?

Strategize your freight schedules efficiently

Being in control of your own schedules can help you cost-cut inbound freight costs, especially when you’re aware of the whole delivery process. When you know your inventory, and your routes, you can also be aware of any additional accessory charges that vendors and suppliers charge you for your goods.?

Oftentimes, deliveries come with costs that are added after the unloading of goods and this can be controlled by you. Thus, when you regulate your schedules and be in control of different aspects of shipping it can help reduce additional freight costs.?

Leverage the use of technology?

At ProConnect, we have worked extensively on automation in warehouses and incorporating partial robotics. Bringing tech into our services has added immense value. In the due course, ProConnect as an organization has seen that technology not only cuts down the amount of manual labour while managing the shipment process but also the additional costs that come along. Systems like partner portals can provide a unified channel to communicate with different parties.?

Technology can also be used to drive analytics that can help you gain insightful data. This helps make improvements in several avenues of your shipping process, especially those where you can implement cost-cutting.?

Create long-term allies

In logistics, it is essential to have reliable partners that are long-term instead of changing your carriers each year. Here at ProConnect, retaining our clients and harnessing long-term allies played a crucial role in us becoming a trusted logistics leader in the industry.?

Switching carriers each year can drive up your costs. On the other hand, if you enter into a contract and navigate through managing the costs efficiently. Creating long-term relationships with your carriers can help you work on transits and delivery times and at the same time, reduce shipping costs.?

This also means finding a service that will understand the ins and outs of your business well. Each company is unique and required a specific structure to work on. ProConnect can help you optimize your logistics operations assess the market's needs and deliver effective strategies unique to your business.?

Smoothen your internal operations

While regulating external factors that are a part of your business is a must, it is important to be aware of what goes on within your logistics process. Communication with your internal departments is important to ensure everything runs smoothly.?

By following this, you can avoid last-minute hassles, especially when you have to bridge gaps. This includes status updates on the latest shipments, transactions, orders etc. Through a mobility platform like the one by ProConnect, you can get all the data you need on the go and regulate different channels effectively.?

It’s easy to ignore the complexities that take place during logistics. But these are crucial factors to consider because even if small, they help in reducing extra inbound freight costs that clog up your budget and go a long way in making your processes operate smoothly.?