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All Wrapped Up in a Neat Little Package! 4 Methods To Reduce Your Haulage Costs

All Wrapped Up in a Neat Little Package! 4 Methods To Reduce Your Haulage Costs

Photo by Jake Nebov on Unsplash

Learning to reduce your operational costs involves understanding the most expensive aspect of your business. Transportation can be a large part of any business budget. Reviewing information can make you far more cost-effective, but when it comes to transportation, whether it’s haulage or ordering from suppliers, there are many ways to reduce transportation costs over time. Let’s show you a few approaches that can make a massive difference. 

Consolidating Deliveries

Consolidating shipments is a very useful method because you can start to combine several orders for one vehicle to deliver it. If you are ordering from suppliers you could ask about consolidating deliveries into as few as possible. What’s more, you may want to consider the overall costs relating to the packaging those supplies use. If possible you could ask that they use custom triple wall boxes instead of wooden packaging to lighten the load, which can consolidate these deliveries. 

Using Different Modes of Transport

If your business relies on one type of transport, you may want to start diversifying your relationship with suppliers. Using multiple modes of transport can make a massive difference, not just in terms of when the items can be delivered, but have an impact on the carbon footprint of your business. For example, transporting items via rail is far more economical than by truck. When you start to reduce the more expensive transport options, you should see a difference in cost over time. 

All Wrapped Up in a Neat Little Package! 4 Methods To Reduce Your Haulage Costs

Ordering Items Earlier

Following on from using different modes of transport, the reality is that we are now in the next-day delivery mindset. Ordering items earlier and allowing more time for their arrival can make a big difference. This is not easy, especially when we are trying to prioritize the customer, but we’ve got to understand that the supply and demand for our products can waver. Many businesses don’t order items that they need right now, but having items in storage can make for a more effective turnaround increasing efficiency for the customer. Rather than ordering an item and waiting for the supplier to get to work, which elongates the chain, if we already have the items in stock, this increases customer perception of our business. 

Increasing Visibility in the Supply Chain

Increasing visibility in the supply chain can help you to gain more insight into the entire process. When we rely on other suppliers to deliver products, we don’t know where they are and if they are going to be delivered anytime soon. When you start to work with suppliers that have the same supply chain management software, this can give you greater real-time access to information, which will increase visibility and everybody can benefit. 

It’s hard to reduce costs in the modern world. But the solution is all about increasing efficiency. There are tried and tested cheaper options of transportation, but there are also many ways that we can work in-house to consolidate and streamline our efforts. Haulage doesn’t have to be a massive expense. Play it right, and it can be one of the most cost-effective aspects of your company.

All Wrapped Up in a Neat Little Package! 4 Methods To Reduce Your Haulage Costs

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