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US $28.00
10 Tips for lowering your companies shipping cost
Ten Ways To Reduce Your Shipping Costs
September 29 2010 Randy Bacon
With the economy slowing, retailers are facing tougher conditions and an increase demand for free shipping. Fortunately, Shipping carriers are also feeling the pinch and finding ways to reduce your shipping cost are available for those who work for it. Ten helpful ways to help lower your shipping cost.
1. Most Obvious is shop rates.
The major shipping carriers market share has decreased in many markets. Wanting to increase shares of a market that slowed considerably, FedEx, UPS and DHL will duke it out, negotiating contracts to reduce rates. Package delivery services will not be your biggest cost savings, but they are willing to negotiate if you know what to ask about.
Rate shop your parcels with all available carriers in your area. Smaller package sizes may be at a much lower rate at USPS. Fed ex and UPS generally get more competitive around 3lbs and over. Although negotiated carrier discounts must be taken into account. Use of USPS flat rate cartons may turn out to be less expensive than UPS or FedEx if your package density (pounds per cubic foot) is great enough. This can only be determined by trial and error. AFMS a logistics/management company having over 18 years experience and a total of 400 years combined senior management experience in the industry, If your looking to ensure the absolute best rates, AFMS 18 years in the auditing/logistics management business is a great alternative to ensure you the lowest savings.
2. Watch for Billing Errors
Audit your common carrier invoices for errors. Line by line parcel by parcel. This is where you will find some of your largest savings. You can assume a percentage of FedEx, UPS or truck freight invoices have an error or a reimbursable service failure you should be getting credits for. You can do your own checking or again, AFMS will set your invoices up to be inspected down to every penny. Ensuring credit where deserved.
3. Monitor DIM, Oversize Charges
Carton sizes are critical to avoid dimensional weight (DIM) and oversize surcharges. FedEx, UPS and USPS all have weight minimums and oversize penalties, which are referred to as DIM charges. These extra fees are calculated on the relationship between package weight and package size. Once you understand how these billing rules work, you may be able to adjust the length, width or height of your stock cartons to eliminate the extra costs. This is another feature provided in AMSF risk free assessment.
4. Process Electronically
Each carrier will offer you discounts in making their job easier. Ask and learn to use their system to save addition fees.
5. Use Air Delivery Only if Necessary
Use express air delivery only when really needed. Don't add packages that may be going to the same destination, just because they are going to the same destination. Ship only the specific items that need overnight shipping and send by ground the remaining items. In addition, make sure to know your market, and zone pricing.
6. Free shipping for recyclables
U.S. Postal Service is giving discounts. Typically deliveries within a few hundred miles offer great discounts. In addition there is no add-on costs for home delivery or fuel. It's offering businesses and consumers free shipping for recyclables such as old or broken PDAs, iPods, digital cameras, MP3 players and other small electronics as well as empty ink-jet cartridges.
7. Seek Group Discounts
Join a trade organization that offers delivery discounts. There are trade associations that offer members UPS, FedEx and truck freight shipping discount programs. For example, the American Booksellers Association provides several aggressive FedEx and truck freight discounts. Your savings have to be netted against membership fees of course.
8. Request Discounts on Supplies
Negotiate discounts with your supplies vendors. As you build shipping volume, switch to ordering shipping supplies with blanket orders subject to monthly releases in the quantities you need.
Just as you use your increasing buying power to reduce your shipping supplies expense, you can negotiate volume discounts with FedEx and UPS as well as participate in postal consolidation programs.
9. Use Rewards Cards for Payments
Use a rewards credit card to pay your shipping and supplies bills. American Express credit cards offer a percentage savings on FedEx shipping services plus other discounts. Also, any rewards credit card that earns miles or cash can be used to pay your Endicia.com, Stamps.com, Pitney Bowes, UPS, and FedEx or truck freight bills. Even 1 percent cash rewards card yields $1,000 in pure savings per $100,000 of in-bound and out-bound shipping fees.
10. Consider a complete shipping Audit:
After 18 years in business and helping over 1500 companies, AFMS' unique ability to help companies reduce shipping cost by using extensive modeling and industry knowledge. AFMS provides a risk free analysis and data profile on your companies shipping dept. AMFS consultants are all former vice presidents of sales, pricing or district and regional managers from FedEx, UPS, DHL, USPS, LTL, trucking and freight forwarders. Never before has this much knowledge and management experience been assembled to help companies reduce their shipping cost.
To get further information and watch a short video on AFMS services on how your company may receive a free no obligation audit, visit my web site http://reduceshippingcost.com or e mail Randy Bacon Randy.AFMS@gmail.com
About the Author
Randy Bacon 360-241-0568 randy.afms@gmail.com http://reduceshippingcost.com AFMS short video overview on reducing shipping cost
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