Transport costs are growing, driven by factors such as escalating operating costs due to high inflation across Europe, a slowdown in the global economy and remaining truck driver shortage (according to IRU in 2023 there is at least 300 000 unfilled jobs).* All these challenges are forcing companies to optimize and eliminate all unnecessary expenses to remain competitive.
Businesses often rely on third-party transport providers, starting from shipping furniture and automotive parts to industrial goods and building materials. For transport companies cost optimization of deliveries is not only long-term strategy but also everyday focus so that the price for the clients would be competitive and fair.
Shippers often assume that freight transport and the associated costs are permanent or fixed and they cannot change. Nothing more wrong – in fact, there are several ways to optimize freight costs in your business. Now, let’s dive into the top five strategies for optimizing your transportation costs.
1. Think about real-time factors during route planning
This isn’t just about choosing the shortest route. It’s about considering road conditions, traffic, and even weather forecasts. Route optimization software can provide real-time updates and offer alternative paths when unexpected incidents occur. Expertized transport companies have even dedicated departments, which are ready to react 24/7/365. This includes not only changing the current route but also providing a substitute truck.
Remember, a smart route is not necessarily the shortest one but the most efficient one, considering all factors such as: the average speed, traffic jams or the cost of expressways and tunnels. Most of transports in Europe are done through land roads, but you can always request a transport via expressways, especially if it is a time-critical delivery.
2. Ship more, but less frequently
Consolidate your products together and use the maximum capacity of the truck – this will let you ship more cargo, but not so often. By shipping more but not so often, you also avoid the fixed expanses which are maybe not seen with the naked eye but are included in every order and transaction.
Also, it’s an eco-friendly choice as it reduces the number of vehicles on the road, but most importantly costs. For example, when you usually ship 2-3 pallets every week, try to rearrange it so you can deliver 8 pallets, but only once in the period of 2 weeks.
3. Ship in part-load
If you are not shipping as many products to consolidate them in one bigger shipment, look for another cheaper alternative which is a part-load solution.
Some of the companies are capable to deliver your cargo by combining your goods, with cargo from other clients which are located on the same or similar way as yours. It can be done by a qualified staff, but also advanced software. At Quote&GO while shipping as part-load you can receive up to 40% lower price compared to premium option with direct delivery.
4. Look for long-term partnerships with transport solutions provider
Establishing a strong, long-term relationship with a few reliable transport providers has several benefits.
You not only can receive a dedicated Key Account Manager, who will provide top-tier customer service, but also look for more ways to optimise your logistics by implementing more cost-saving strategies, because they understand your business.
You are also more likely to receive attractive discounts. Also, while choosing a long-term partner, make sure it’s an experienced company, trusted by businesses from your branch or big logistics operators.
5. Regular Audit and Analysis
Use it to identify trends and opportunities in your shipping patterns. Look for repeated overcharges and track your provider’s performance to ensure they meet the agreed-upon terms.
For example, you can trace how fast you receive solutions. Also, check on which days the availability of truck is higher and lower. Regular audits will help you understand your cost per shipment and how different factors (like seasonality) affect it.
Key Takeaways
- While planning a route, try to use unpaid roads as often as it’s possible – transit time won’t make such a difference
- Collect more goods and ship it in a bigger volume, but less frequently
- Use a part-load option instead booking a whole loading space which can cost you even 40% less than a dedicated van option.
- Develop long-term relationship with your transport partner instead using different companies for every delivery
- Collect data and regularly analyse it to find potential changes to improve your transport operations
Are you ready to optimize your transportation process even further? Visit Quote&GO – an innovative platform that allows you to quote and book transport within minutes. All of that, with taking under consideration all most important aspects of transport cost optimisation to save your valuable time and streamline your shipping operations.
Our software not only chooses the best route based on thousands of deliveries done before, but also pair your shipment with the nearest truck, simultaneously, checking if it’s possible to send in the most cost-effective option, in a part-load.
We are a team of 160 Transport Experts and cooperate on a daily basis with Geodis, DHL, Gefco and more.
