I started an importing business a year and a half ago, and although I contacted several freight forwarding companies, it was Tim Crandall at Logistics Plus who was always quick with answers to my many questions. Because of that, I went with Logistic Plus, and I am really glad I did. Tim has handled all of my shipments with friendly professionalism, speed and attention to detail. The paperwork is always in order, even when I have special requests. Tim and his team make shipping from China a pleasure!
The leaves are turning, temperatures are dropping, and the peak Fall freight shipping season is here once again. Manufacturers are working to ship year-end orders, distributors are managing inventory and fulfilling shipments, and retailers are stocking shelves for the holidays. No matter where your business lies within the supply chain, finding affordable and reliable freight capacity this time of year is critical. To help get you through the season, here are 8 cost-saving freight shipping tips for you to consider:
Avoid surprises by knowing as much about your shipment as your carrier does. Carriers use dimensioning machines and forklift scales that measure and weigh every pallet. If your documentation doesn’t match their calculations, you’re charged an administrative fee to make the correction – plus your freight charges may be adjusted higher if it is heavier or takes up more space than expected. So know your proper freight classifications, and be sure to note specific National Motor Freight Classification (NMFC) codes on your bill of lading.
Focus on the net cost. Discounts can be misleading. When shippers get a big discount from a carrier, they often think it’s a great deal; but there are so many other factors to consider, including the fact that “list price” base rates vary from carrier to carrier and from lane to lane. So an 80% discount off one carrier’s base rates may actually be more expensive than, say, a 75% discount from another base rate schedule. That’s why it is important to focus on only the total net cost, and not the discount (as we do here at Logistics Plus).
Know when to consolidate. When shipping LTL freight shipments (those weighing between 150 and 10,000 pounds), consider consolidating orders to create a full truckload. LTL rates are usually much higher than truckload rates. Additionally, you should monitor your shipping patterns. If you find you are shipping multiple LTL shipments to the same customer within a close date range, consider consolidating those smaller loads into larger ones to reduce your overall expense.
Understand the value of your product and carrier liability limits. Every booked freight shipment comes with limited liability coverage. The amount of coverage is determined by the carrier and based upon the commodity type. It covers a certain dollar amount per pound of freight. In some situations, the included liability coverage may be less than the value of the shipped goods. If so, this is where additional freight insurance may be purchased. The extra freight insurance covers the shipped items and the cost of freight shipping. It is redeemable under all types of loss with no proof of fault required. Unlike the limited liability coverage, with added insurance, there are no exclusions for packaging errors or severe weather.
Be realistic about the service level you need. If your customer expects delivery in three days, you don’t need to overpay to deliver their shipment in one day. Additionally, don’t use a national freight carrier to deliver short-distance shipments, or a regional carrier to deliver coast-to-coast shipments. Regional carriers are much more cost-effective for regional shipments, while national carriers will provide the best “long-haul” service with minimal handling. When you do need expedited freight service, knowing your carriers and options can make a big difference on the final price, i.e., expedited ground shipping is going to cost much less than expedited air.
Pay attention to your packaging. Shrinkwrap your freight to your pallet to avoid it from sliding or shifting during transit. This will minimize costly damages and delays. Furthermore, don’t use more packaging than is required for your shipment. Over-packaging can create additional weight or “dead air,” both of which will add to your shipping costs.
Don’t forget about your inbound shipping. Oftentimes companies will ignore cost-saving opportunities with their inbound shipping because their vendors pay for the shipping on these orders. The reality, however, is that nothing ships for free. Many vendors will use a “prepay-and-add” approach to make additional profit on freight shipping. A thorough analysis of your vendor invoices might provide cost-saving opportunities if you bring the inbound shipping and routing under your own control.
Know how much time you’re spending on freight shipping. A lot of valuable time and resources can go into freight shipping. Finding scarce truck capacity, sourcing the right carriers, negotiating agreements, obtaining multiple carrier quotes, tracking shipments, auditing freight invoices, dealing with claims – these all contribute to your overall logistics expenses. Rather than dedicating internal, fixed resources to such activities, you may consider working with a reputable third-party logistics (3PL) company instead. A good 3P, like Logistics Plus, will be able to leverage all of its business to negotiate better rates with more carriers on your behalf. They will also have a transportation management system (TMS) technology that supports multiple carrier, service, and mode options. They’ll be able to help track shipments, audit freight invoices, and consolidate reporting. Lastly, they can scale their resources to appropriately address the fluctuations in your supply chain.
If you’re ready to take #8 of these freight shipping tips to heart, the freight experts at Logistics Plus stand ready to help. Use any of the buttons below to get started.
The Thunderbirds soared into the sky over North Texas at this weekend’s Fort Worth Alliance Air Show where, reportedly, more than 120,000 people were in attendance. Logistics Plus employees at the Dallas-Fort Worth Warehouse got a firsthand glimpse – and some amazing photos (see below) – as U.S. Air Force’s aerobatics squadron screamed across the overhead skies.
More than 120 enlisted personnel, representing nearly 30 career fields, form the backbone of the Thunderbirds. Enlisted team members are selected from units across the Air Force in a highly competitive hiring process. While each position has its various selection requirements, all eligible candidates must show a proven record of success and extensive job proficiency. The last time the Thunderbirds flew, in an extremely rare incident, one of their jets crashed minutes after finishing up an air show over the Air Force Academy graduation in Colorado Springs. The pilot ejected and was unhurt, and no one one the ground was injured because he crash-landed in a field.
Shown below is a video slideshow of the USAF Thunderbirds performance at the Fort Worth Alliance Air Show.
As recently reported, sources say the giant online retailer Amazon.com is expected to close the Fulfillment By Amazon (FBA) program to new sellers during the Q4, 2016 period. New sellers who have not yet sent in their first shipment to Amazon will not be able to do so until January 2017. Amazon’s latest move will leave many hopeful retailers – without their own self-fulfillment programs – on the sidelines as other previously-established FBA sellers fight for those coveted Q4 sales.
Why is Amazon doing this? With the rise of demand and sales that Q4 brings, Amazon usually experiences a huge flood of sellers looking to cash in on the holiday shopping craze, but these ‘growth spurts’ don’t come without consequences. Amazon boasts a huge network of fulfillment centers in 23 states; in fact, they reportedly have over 50 fulfillment centers, over 20 sortation centers, and more than 90,000 full-time employees, but these facilities are not intended to be long-term storage warehouses, but rather temporary short-term storage facilities. The growing number of Amazon FBA sellers, coupled with slow-moving inventory, has put a strain on these fulfillment centers to the point that Amazon was forced to take measures to keep inventory flowing through its veins.
So what can new Amazon sellers do? If you have inventory coming and you see yourself blocked from selling your items on FBA, you still have the option to sell your products through a self-fulfilled (or Merchant-fulfilled) type of scenario with the assistance of a third-party warehousing and fulfillment provider – like Logistics Plus. We are an established and approved member of the Amazon Solutions Provider Network (SPN), so we know how to help sellers import, warehouse, label, and deliver their merchandise according to Amazon specifications.
When you work with Logistics Plus, instead of sending your orders to an FBA distribution center, have your goods delivered to one of our many warehouses around the U.S. (you don’t need to store your merchandise in your own home or garage any longer as some sellers have resorted to doing). When your merchandise is stored at a Logistics Plus warehouse, our warehouse management system (WMS) software provides you with online, complete real-time visibility to your inventory on-hand. Beyond that, the process is very similar to FBA; only you won’t need to worry about inventory management, security, picking & packing, labeling, etc. – Logistics Plus does all of this for you.
Orders come directly to you through the Amazon system.
You then forward the order to Logistics Plus along with the prepaid shipping label and packing slip.
Logistics Plus picks and packs the order, labels it, and then sends the order to your customer.
You monitor the status of your order through our online WMS.
That’s it. Now you can focus on marketing and selling your products rather than worrying about the warehousing and logistics side of things. If you’re ready to begin your own Merchant/Self-Fulfilled program with Logistics Plus, click the button below to learn more and get started. Alternatively, you can send an email to amazonretailer@logisticsplus.com. We’re here to help!
Less-than-truckload (LTL) shipping refers to relatively small freight deliveries that are too large to be classified as parcels and too small to fill an entire truck (i.e., full truckload). When obtaining LTL freight quotes for such shipments, carriers generally tend to consider anything between 150 and 5,000 pounds as a typical LTL shipment. Shipments over 5,000 pounds can also move via LTL carriers, but may require a spot or volume quote to obtain the best pricing. Because many LTL shipments move from small- and mid-sized businesses that lack sophisticated logistics or transportation departments and software, shippers are often not aware of how best to save time and money in this aspect of their business.
Logistics Plus recently participated in a good cover-story article titled “18 Sure-Fire ways to Save on LTL” that appeared in the September 2016 issue of Inbound Logistics magazine. Although we won’t list all 18 of those tips, here are a few noteworthy ones:
Focus on the net cost. Discounts can be misleading. When shippers get a big discount from a carrier, they often think it’s a great deal; but there are so many other factors to consider, including the fact that “list price” base rates vary from carrier to carrier and from lane to lane. So an 80% discount off one carrier’s base rates may actually be more expensive than, say, a 75% discount from another base rate schedule. That’s why it is important to focus on only the total net cost, and not the discount (as we do here at Logistics Plus).
Factor distance into the decision. Do you need a national or a regional LTL carrier? Some shippers will ship regional shipments with national carriers and, more often than not, pay a premium to do so. Similarly, some regional carriers will provide national service through “interline” partnerships with other carriers. Oftentimes these services will add additional days to the delivery of your shipment, and will require additional handling which increases chances for damages to occur. One of the benefits of working with Logistics Plus is that our eShipPlus transportation management system (TMS) will provide all of the national and regional carrier options best-suited for your shipment in one view.
Consolidate orders. When Logistics Plus provides a free freight analysis for a client, we occasionally uncover multiple shipments to the same location on the same day. Consolidating these orders into one shipment will be more cost-effective for you, and probably more efficient for your customer to receive as well. Similarly, when companies ship LTL from multiple facilities or locations, there may be an opportunity to centralize the decision-making for that freight spend and leverage it for better freight discounts.
Work with a 3PL. As noted above, an established and reputable 3PL can help you find the best rate, identify opportunities for more efficient shipping, audit and consolidate freight invoices, track and trace your critical shipments, and provide access to TMS technology.
If you’d like to work with Logistics Plus for any upcoming LTL freight quotes or services needs, simply click the button below to get started. Our 20-year LTL freight experts stand ready to help!
I started an importing business a year and a half ago, and although I contacted several freight forwarding companies, it was Tim Crandall at Logistics Plus who was always quick with answers to my many questions. Because of that, I went with Logistic Plus, and I am really glad I did. Tim has handled all of my shipments with friendly professionalism, speed and attention to detail. The paperwork is always in order, even when I have special requests. Tim and his team make shipping from China a pleasure!
The leaves are turning, temperatures are dropping, and the peak Fall freight shipping season is here once again. Manufacturers are working to ship year-end orders, distributors are managing inventory and fulfilling shipments, and retailers are stocking shelves for the holidays. No matter where your business lies within the supply chain, finding affordable and reliable freight capacity this time of year is critical. To help get you through the season, here are 8 cost-saving freight shipping tips for you to consider:
