04 May How to Save Money on LTL Shipping
If you are a small shipper, saving money on shipping is crucial to your business. Thanks to the internet, consumers are able to compare price between competitors in a matter of seconds. Because of the recession, consumers are price-driven and will purchase the item with one of your competitors for a minimum savings.
One way to be able to be more competitive is to lower your shipping cost. How do you do this? I hate to break it to you, but it’s a catch 22. In order to get big discounts with LTL carriers is to have volume, but you can’t get the volume because your shipping rates are too high. Now, let’s level the playing field. Working with a 3rd party logistics company can offer you tremendous savings since generally their LTL freight spend is in the millions. For years, food distributors have been forming co-ops, by combining the freight spend of several hundred companies, into one. Think of a 3rd party logistics company as a co-op.
At Pathmark we take several thousand small companies, pool all their freight spend into one big customer for our carrier partners. Our carriers love us, since they basically have thousands of customers with one point of contact for billing, operations, and our shipment tendering is done electronically to make us easy to work with. Not only that, but our system identifies shipments that fit the carriers profile, so they only get the freight that they want.
It’s a win-win for all parties involved. There are also ways to save money on LTL shipping. If you ship in high volumes, your 3rd party logistics company will be more than happy to use their industry knowledge to negotiate rates on your behalf. Of course there are other ways to save money on LTL shipping. You can do a terminal delivery on residential shipments, you can bump the weight to lower the class, and if the shipment is in boxes you can break down the pallet and off load each box individually to avoid a liftgate charge. Keep following our post to find more ways to save money on your LTL shipping.