As a coffee shipper, finding ways to lower freight costs is essential to protect your bottom line. Shipping is a major part of your logistics expenses, and even small savings can make a big difference.
But remember, simply chasing the lowest less-than-truckload (LTL) or full truckload (FTL) rates isn’t always the best strategy. Effective cost-cutting requires a holistic approach that takes into account all resources involved in shipping, from labor to technology. Here are eight tips from Fair Trade Logistics to help you reduce freight costs without compromising service quality.
1. Consolidate (and Build Strong Relationships With) Your Carriers
Working with fewer, reliable carriers can help you secure better rates and streamline operations. Evaluate your shipping lanes and types of shipments, then ask a select few carriers to bid on your freight. Building these relationships can lead to volume-based discounts, as carriers appreciate consistent business and reward you for it.
Alternatively, you can work with a 3PL like Fair Trade Logistics. As a non-asset-based provider, we can leverage our extensive network of carriers to negotiate the best rates on your behalf and create a tailored strategy that meets your needs.
2. Know Your Shipping and Logistics Options
Coffee shippers have a variety of options to move products. Knowing the nuances of these options can help you save money. For example, LTL might work for one to six pallet shipments that don’t fill a truck, while consolidating weekly shipments into single partial truckload or full truckload could be more economical if you have available cashflow and storage.
Working with Fair Trade Logistics gives you access to industry expertise, ensuring you make informed choices that optimize costs for each shipment.
3. Understand Accessorial Fees
Unexpected fees, or accessorial charges, can add up fast. Common ones include liftgate charges, limited access, and inside delivery fees. It’s crucial to understand these costs and plan for them. At Fair Trade Logistics, we help our customers anticipate and manage accessorial fees to avoid surprises and unnecessary expenses.
4. Avoid Rush Shipping
While rush shipping is sometimes unavoidable, it’s costly and can quickly eat into your margins. Whenever possible, improve your internal processes to avoid last-minute shipments. By planning ahead, you can reduce your reliance on expedited shipping, allowing for more cost-effective transit times.
5. Extend Shipping and Receiving Hours
If you have the flexibility, consider expanding your pickup and delivery windows during peak season—ideally from 8 a.m. to 5 p.m., or even longer if possible. With increased holiday volumes, carriers often face bottlenecks at pickup and delivery points, which can lead to unexpected delays and rollovers to the next day. By offering extended hours, you give carriers more options to fit your shipment into their schedule, reducing the risk of day-to-day delays and keeping your deliveries on track.
6. Conduct Freight Bill Audits
A freight invoice can reveal a lot about your shipping habits and costs. Regular freight bill audits can help identify areas for improvement, whether it’s optimizing shipping routes or avoiding unnecessary services. Fair Trade Logistics can assist in auditing your freight bills to ensure accuracy and uncover hidden savings opportunities.
7. Leverage a Transportation Management System (TMS)
A TMS platform provides a central hub for managing all your shipments. This tool lets you get instant freight quotes, add insurance, customize invoicing, and track shipments in real-time. With a TMS, you can streamline processes, make data-driven decisions, and cut costs more effectively.
8. Partner With a 3PL to Reduce Expenses
Working with a 3PL like Fair Trade Logistics can offer substantial benefits. From competitive rates to consistent capacity, a 3PL can be a valuable partner in managing your shipping needs. Our expertise helps you minimize costs, gain supply chain visibility, and make logistics less of a burden on your business.
Fair Trade Logistics: Your Partner for Cost-Efficient Shipping
At Fair Trade Logistics, we provide a wide range of tools and resources, along with top-tier support from logistics experts who understand the coffee industry. With access to our extensive network of carriers, including 85,000+ FTL and 75+ LTL providers nationwide, we’re ready to help you optimize your shipping strategy and reduce costs.
Want to learn more? Reach out to Fair Trade Logistics to see how we can help streamline your logistics and maximize your savings.
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