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Posted on May 27, 2022 in Small Business

How Can You Control Your Transport Costs?

Transport operation management is complex, as it requires a combination of skills and job knowledge. Plus, you have to have the right attitude. Controlling the cost of transportation isn’t easy either. Freight costs account for a significant proportion of your company’s expenses. Taking into consideration the rising fees, you should look into cost-saving options. Lack of proper planning, transparency, and decision-making can drive overall costs to increase, failed deliveries, and lost business. You have to improve both supply chain and financial performance. Here are some ideas to consider—any meaningful cost reduction matters.

Invest In Dedicated Software for Freight Cost Management

What you need is a digital solution for financial follow-up, cost control, and shipping analysis. Freight cost management software helps you choose the best options for your needs. Carriers, forwarding agents, freight forwarders, and so on are in one place. They can proceed in a secure way about tariffs, purchases, and transport costs. The software is cloud-based. By including all transport costs together with booking, ordering, and purchasing, you can automate frakt kontering. You have a good overview of all activities supporting improvement. One interesting feature of dedicated software for fright cost management is fakturakontroll. Once the invoice specification is uploaded, the amounts are checked against the freight charges, and surcharges are calculated.

Change Your Shipping Speed

When it comes to speed, road transportation is similar to trains and sea freight. Road transporters have the liberty to use motorways at any time of the day or night. Don’t use excessive amounts of air freight. It takes more time to clear customs and prepare the necessary documents for transit. Better yet, look over your invoices and see what you’re paying for. Perhaps higher priority freight isn’t necessary. Indeed, it can save you two to five days of transit time on a shipment, but the cost isn’t worth it. Instead of doing everything possible to deliver the shipment at the earliest possible time, you should better change the actual speed of delivery.

Join Forces with Other Shippers

Have you ever considered joining forces with other shippers? If not, this would be the best time to do it. Collaborate with shippers near your distribution centers to integrate your freight with theirs. As well as sharing best practices, you can play an active part in the sustainability dialogue. It’s a win-win situation. The idea of joining forces with other companies is to secure the best value for transporting goods. Success relies on mutually beneficial contracts that are executed effortlessly. It’s paramount to invest time and resources in safety and good conditions for the personnel on board. As transportation players, it’s up to you to make sure transport activities are carried out responsibly. Maybe you should hire fraktkonsulter.

Depending on what niche you occupy, you have to invest in certain types of equipment and establish your rates. Choosing to work in another niche can turn out to be financially rewarding. For example, van transportation is regarded as a profitable niche. It’s easy to start and doesn’t require much investment.