Small businesses are no strangers to the fact that every dollar counts. Supply chains everywhere need to be aware of how to save money while still running smoothly. But logistics is a tricky industry and there are easy ways to waste money when shipping freight. We’ve put together the 3 most common ways to waste money when it comes to freight shipping and what your business can do to stay ahead of the game.
3. Getting Blindsided by Billing Adjustments
One of the most common ways to waste money is billing adjustments. Costly adjustments post-shipment can wreak havoc on your freight budget.. Knowing the basics of how billing adjustments happen and how to avoid them will help you avoid wasting money. Accessorials (a fancy word for add-ons) is often the culprit behind these post-shipment adjustments. But, rest assured, you can prevent these types of billing adjustments. Even the smallest additional shipping service that is not added when obtaining a quote can result in a costly billing adjustment. Some common overlooked accessorials include but are not limited to the following:
- Inside pickup/delivery.
- Shipping to or from limited access locations.
- Liftgate services when no loading dock is present.
People often assume carriers function as movers or that the friendly driver will pick up or deliver your cargo inside your business’s front door. However, this is an inside pickup/delivery service that is an extra fee if performed, even if you don’t formally request it.
Locations can be classified as limited access locations depending on certain conditions or require liftgate services if there’s no loading dock at pickup or delivery.
Of course, some of the more common billing adjustments come from weight and freight class reclassifications. Carriers always check the weight and contents of all shipments. Inaccurate information on the Bill of Lading (BOL) will result in a billing adjustment. We recommend staying educated on all the different types of freight accessorials, so you won’t waste money on your final shipment invoice.
2. Bad Packaging
Freight packaging is in a world of its own and for good reason. Improper or careless freight packaging is one of the easiest ways to waste money when shipping. Improper packaging can cause damage to your cargo or potentially harm somebody else’s cargo on the same truck trailer. Additionally, a driver has the right to refuse pick up of an improperly packaged shipment. That leads to repackaging, rescheduling and paying for a second pickup. More packaging materials will be used, time will be wasted and more dollars down the drain!
We’ve put together a Guide to Freight Packaging with best practices for packaging your cargo and the basics about the different types of freight packaging. A large portion of every supply chain should be dedicated to ensuring packaging procedures are in tiptop shape.
1. Not Using a 3PL
Third-party logistics companies (3PLs) specialize in finding affordable, custom shipping solutions for their clients. They have the expertise, technology and the connections with carriers to meet every shipper’s needs both logistically and financially. Because of the volume of business that’s passed on to carriers, 3PLs are given discounted rates straight from shipping companies they can pass on to their own customers. It’s more affordable to partner with a 3PL than to ship directly with a carrier.
When you partner with a 3PL, you have your very own centralized shipping department who can quickly find the right lanes and carriers to fulfill your shipping needs.
The easiest way to avoid wasting money when shipping freight is by partnering with FreightCenter. We offer the best rates in the industry and make it our mission to empower supply chains to be effective and efficient.
Get a free quote today or call (800)716-7608 and experience the smarter way to ship with FreightCenter.