5 Simple Ways to Optimize Your Transportation and Shipping Costs

Supply chain management can be daunting. You just want to make great product! In the world of transporting materials and finished goods, there are a few simple ways to make sure you get some bang for your buck.

1. It is all in the details

Create a very detailed Bill of Materials so that it is all in one place on your product down to every last detail including

Product weight and dimensions out of package, in package, in shipping carton

Each material or ingredient

Where are things coming from?

Does the factory have a dock?

Do I have a dock?

What is a dock?

And it is ok to not know everything! Ask questions. The more you know about your supply chain, the better you can negotiate and find the best option for your product and customers.

2. Combine shipments and reduce packaging costs

Combining shipments will get you volume discounts. Shipping costs are calculated on space and weight. If you can reduce either of these, you will save money. It is also more sustainable. Planning in advance will save you expensive rush fees. Whenever you can, avoid airing product as this gets rather costly.

3. Befriend your local small businesses

Let’s just say that you are going to the same trade show as Joe from across the street. If you can combine truckloads and ship together, it is going to halve your costs. The same goes with if you are using the same manufacturer or consolidator for production. It is always about maximizing space. It will cost you the same whether the space is filled or empty so you might as well get your money’s worth.

4. Find An Expert

You cannot be an expert on everything! With transportation, there are so many options out there. Information and rules vary so much by industry, country of origin, where you are shipping to, how you are shipping and of course, how much you are shipping. Talk to people who understand your problem and can help to tailor a solution. Industry experts can save you time, money, headaches and heartaches. Tariffs and duties can make or break a company. Concentrate on making amazing products and marketing and sales. Leave these details to those who have made it their passion to tackle this puzzle.

5. Ask for the discount.

This is a competitive industry and companies are competing for your business. Do not be afraid to ask things like “Is this your best price?”, “What services are included in this price”, “What kind of volume do I need to obtain a discount?” Your business is valuable as you grow.

Jennifer Morris — Empowered Consulting Co. — Empoweredconsultingco@gmail.com