Freight is big business and with the multitude of options in the marketplace, it is easy for companies to fall into the trap of using too many freight providers. If you are looking to create impressive cost savings when it comes to freight, consider the following important tips for consolidating carriers to maximise business profits.

The temptation not to consolidate freight providers

Some businesses have goals, which may conflict with the idea of using just one carrier. For example, some freight providers may be experts at niche market deliveries, while others may have impeccable records in meeting customer deadlines.

However, despite these goals and in an effort to keep overheads down, many businesses choose instead to prioritise greater cost savings. As a result, many savvy businesses are consolidating the services that are otherwise typically leveraged across multiple freight providers.

Six reasons businesses are choosing to consolidate freight providers

 

1. Freight providers offer volume discounts

If a business chooses to use a single carrier, they are able to take advantage of volume discounts offered by freight companies. If they are shipping large volumes per month, the savings created are substantial over time.

 

2. Businesses can increase their negotiating power

It is possible for companies to negotiate better deals, especially in terms of kilo rates, when choosing a single freight carrier over multiple provider options.

 

3. Reduce invoicing and administration headaches

All businesses look for ways to become more efficient, so they can get on with the job of what they do best. By consolidating carriers there’s less paperwork to deal with at the end of each month.

 

4. Substantially raise a company’s bottom line and profits

Over a period of time, the savings accrued can improve a company’s bottom line directly or by allowing for other profit producing benefits through the reallocation of these resources elsewhere in the business.

 

5. Avoid being overcharged by freight providers and improve standards

If a company is better able to keep track of invoices and spending, the risk of being overcharged is greatly reduced. This is because managers and staff have more time and resources to check details, service standards and connote mistakes.

 

6. New freight auditing services make consolidation a no-brainer

Companies such as Freight Cost Solutions™ offer expert services to help businesses consolidate freight providers. The services on offer are a no-brainer because they also maximise savings through a commission-free cost reduction business model.

 

Have you consolidated your freight providers recently? Did you experience any unexpected charges or commissions? If so, share your experience in comments below.