Is business leaving you little time to make those important money-saving checks? If you aren’t educated in the standard business undertakings of a freight company, you could risk paying up to 60 per cent more than you have to. If you’d like to maximise business profits in terms of savings, read on to discover some quick tips for avoiding the expensive pitfalls of being overcharged for freight.
Enlist the services of a professional freight rate auditor
The fastest way to avoid being overcharged by a freight company is to enlist the assistance of a professional freight rate auditor. Companies like Freight Cost Solutions™ are specialists in saving customers hundreds of thousands of dollars each year. The savings are also a win-win. Freight Cost Solutions™’ business model avoids commissions and only takes a percentage of the savings. This way you can be assured of a transparent service with no hidden charges.
In outsourcing this part of your business, you will greatly reduce costs while also removing the administrative headache of having to work it all out yourself. Freight Cost Solutions™ employs a team of accounting and finance specialists to do the ‘heavy lifting’, so to speak, leaving you to get on with business.
9 ways to avoid being overcharged by a freight company
1: Arm yourself with knowledge
It’s really important to become educated about freight terminology and the hidden charges that can be prevalent in the transport and logistics industry. Read the Freight Cost Solutions™ blog to gain insight into freight cost reduction, how a freight company works and some of the misleading information that is out there. This knowledge will provide you with powerful insight in terms of the huge cost reductions that can be achieved.
2: Check you are getting a volume discount
A freight company might advertise a certain rate but this may be overlooked as your volumes increase. It is important to keep checking your freight provider’s volume discount rates to make sure you are receive the proper savings as your business freight needs expand.
3: Be careful of fuel levy charges
A common way freight companies overcharge customers is via fuel levies due to the fluctuating fuel prices and transport costs. Companies may also use outdated information or charge via overall cost rather than distance. Whatever the reason, it is difficult to keep tabs on fuel levy charges over the period of days, weeks and months. This is just one of the reasons why enlisting a freight rate auditing company is essential to business success.
4: Get to know the different rates between regions
A freight company will charge different rates for regional and metro areas. If you don’t make yourself aware of the correct zone to postcode files for your carrier, you could potentially pay too much for each consignment. If you don’t have time to learn this, Freight Cost Solutions™ can provide high level support and expertise in this area.
5: Get better at cubic conversions
Did you know that calculating cubic conversions includes finding the greater weight between the physical weight and the item’s volume multiplied by a cubic conversion factor of either 167, 250, 333 or 1000 m3? If you’d rather get on with business than try to make complicated calculations (or risk getting them wrong), consider calling the Freight Cost Solutions™ Helpdesk. Our experts provide the software and tools for calculating cubic conversions daily.
6: Check your accounts at the end of each month
As with any good budgeting, it is a good idea to check invoices and accounts on a monthly basis to make sure you are paying the rates promised by your freight company. It is not uncommon for prices to creep up without customers noticing, so be sure to check and reconcile your accounts each month to avoid being overcharged.
7: Check the services you are paying for
If you are not keeping a close eye on your freight processes because you are too busy working on other areas of business, you could be paying for priority services when standard options will suffice. These costs certainly add up over the period of a year and are well worth keeping a regular check on.
8: Study a freight company’s transit times
There are many freight companies delivering consignments to both domestic and international markets. But how do you know your consignment is getting to its destination in the fastest time and for the least amount of money? Studying transit times is extremely time consuming and another reason to outsource this job to the experts.
9: Reduce the number of freight providers on your list
Reducing the number of freight providers you use is a sure way to reduce freight costs because you can take advantage of volume discounts. Other areas where customers can be overcharged include kilo rates, pallet and carton rates and annual rate increases.
If you would like to know more, or to discuss your freight needs with our expert team, please get in touch