Freight Rates Going Up? Don't Worry, You Can Still Reduce Your Freight Costs.
Oct 17, 2018
Let’s face it, 2018 has been a brutal year for shipper freight budgets. Rates are running much higher than most shippers anticipated. That is why I was so intrigued when I heard Derek Leathers (CEO, Werner) state that while rates are going higher, knowledgeable and innovative shippers can still reduce their freight costs. How is this possible? Well, as Derek explained, there's likely at least 5% savings that can be found by addressing inefficiencies and waste factors within your company.
Candidly, I wasn’t too surprised by Derek’s reference to the 5% because based on experience, we've confirmed that Derek is right. Shippers who are serious about controlling their freight costs know that there is “gold in dem dar hills!” In other words, shippers who are willing to examine and change practices and processes that impact freight can realize double digit – not just 5% savings.
How does this work? To illustrate the point, we’ve created a new infographic that highlights a few of the factors that influence transportation costs. Here is an interesting tidbit for you: most of these the decisions affecting these practices and processes are made with little, if any, input from transportation folks within the organization. That is why companies who are serious about controlling their costs are now giving their transportation folks a seat at the table. Download the infographic to see practical examples of where savings may be hiding within your walls.
Derek isn't the only expert providing valuable insights into how shippers can save, and what is to be expected in the marketplace ahead. We caught up with several executives at CSCMP's recent annual conference, and you can listen to them here.
We provide all of this because we're on your team, here to help, and passionate about seeing you be successful. And if you need some guidance regarding how you can find savings within your walls, give us a call or send us an email. We'd love to have a conversation with you.