Freight costs account for a large portion of your company’s expenses and with rising fees, you’re likely looking for cost-saving options. As your company grows, your operations will evolve alongside it and there are many resources and tips you can use to reduce freight costs and save you time. Whether you’re shipping internationally, nationally or both, it’s important to do your research and find the best options for you and your company. Ultimately, you’ll be able to save time and money by implementing some simple changes.

Check out the 10 tips below for reducing freight costs:

1. Choose the best mode of transportationThis will depend on the type of goods and services you’re transportation and the travel distance, however it’s important to know which will be most cost-effective. Ocean shipping is often cheaper than air, especially if you’re shipping internationally. If you’re shipping closer to home, rail is typically less costly than trucking. Knowing transportation costs will help you to understand the best choice for your company based on budget and deadline.
2. Try hybrid transportationYou can use a mix of transportation if necessary. Combinations of air, ocean and ground transportation can prove to reduce transportation time all while reducing cost. You can have the best of both worlds. If air shipping is proving to be too costly for you, and you’re worried about the time it will take for inventory to ship via the ocean, a hybrid transportation plan might be the best choice for you.
3. ConsolidationConsolidating goods or services from multiple suppliers in one country might cost you a bit more time in transportation; however, it might be worth it from a costs standpoint. Many smaller shipments, or less container load shipments (LCL), can also be consolidated into larger shipments, or full container loads (FCL) to provide additional cost savings.
4. Supply chain visibilityUnderstanding each level of your transportation chain from supplier to customer will help you to better pinpoint inefficiencies and cut excess costs. As well, you’ll be able to react more quickly to problems as they are occurring, saving you time and money in the future.
5. Be sure to understand international outsourcing costsIf you’re shipping goods or services from overseas, you could end up facing a variety of costs including duties, brokerage, carrying costs and more. What might have started out as the least expensive option is now rising your freight costs. Buying inventory closer to home might be a more cost-effective solution for your company.
6. InsuranceYou’ve spent time cutting back on freight costs. However, your efforts might be wasted if your inventory isn’t insured. Ensure your supplier’s insurance is up to date or that you have obtained the proper insurance to fit your inventory. As well, it’s important to note what your insurance covers so that you don’t spend extra money on shipping premium goods and services.
7. Automate where possibleAutomating certain processes and procedures will prevent errors, reduce paperwork and shorten or prevent delays, such as those at border crossings. Doing so will save you money and time, as well as mitigating risks associated with damaged inventory or invoice errors. Performing necessary tasks manually can take up your time and resources.
8. Understand express shipping costsIf you experience late shipments due to an issue or error, your company will likely ship that inventory express or priority. You can save money by determining which inventory are needed immediately and send the rest using a standard shipment method, as opposed to shipping all items as high-cost express or priority.
9. TariffsIf you’re shipping internationally, being knowledgeable about tariffs can help to save you money. For example, non-tariff trade barriers are set in place to reduce sweat shop labour, and crossing these barriers can cost you. However, you can also manufacture products that fall under classification duty rates and are eligible for special trade programs.
10. LogisticsUsing a third party logistics service can insure you shipping procedures and shipping patterns are fully analyzed and you receive ultimate supply chain management. This can significantly reduce costs and save you time. As well, the insights you’ll achieve from using a third party logistics service will help you to better plan the economic future of your company.

Freight costs are a significant part of your company’s expenses, so it’s important to keep the above 10 tips in mind to maintain your competitive edge in your market. Choosing the best mode of transportation for your company and inventory, consolidating multiple suppliers or loads, automating certain procedures, improving supply chain visibility, researching outsourcing costs and tariffs and adding proper insurance are all ways to help you save money. However, having a third party logistics company can help you to better grasp the day to day procedures of your company’s freight and ensure you can get focus on doing your job.

Invoicing is an important part of running your business smoothly. However, inaccuracies and errors can cost you and your company money and time. Common invoice errors – that all organizations suffer from – can include incorrect purchase order, shipper or carrier number, incorrect billing address, missing contact information and incorrect charges or date. If you’re shipping internationally, these inaccuracies could mean further costs due to exchange rates.

Auditing invoices before and after their approval will prevent issues such as double-billing or overcharging, but there are some other tips to keep in mind. You can free yourself from correctional paperwork and extra charges, such as fuel surcharges, by reducing or eliminating invoice errors.

You can reduce invoice errors by keeping the below information in mind:

Third-party auditing

Introducing a third party audit and analytics specialist will ensure invoices from vendors are 100% accurate. Invoices will be taken care of and paid on your behalf so you can focus more on doing your job and less on monotonous tasks. Ultimately, you’ll be able to reduce costs and save time.

Standard invoice

Using one standard invoice for all vendors will reduce confusion. You should clearly mark each document as an invoice and include a unique reference number, as well as the date of issue. You’ll also need to include value added tax numbers and any contact information for the supplier and customer. As well, a description of the goods or services being shipped and the weight and volume of freight should be on the invoice. Lastly, you’ll need to include where the freight came from and where it’s going, as well as total charges and method of payment.

Invest in the right technology

Using auditing tools and technology will allow you to easily access your invoices and quickly make any needed changes in your own system. This will also allow you to view your invoices processed by the date or customer, as well as providing you with the ability to track orders and gauge customer interest. As well, you’ll be able to use this data to better visualize short and long term goals for your company.

Not only will you save money and time by using a standard invoice for every vendor, but you’ll also be investing in relevant technology that will allow you to visualize data from your invoice history.

Streamlining your company’s operations can improve efficiencies, reduce costs and increase your organization’s growth. In a competitive market, it’s crucial to stay on top of your operations so you can better serve your customers. The first step is to analyzing your current operations and decide on an appropriate plan of action. However, you should also consider other aspects of your operations, including choice of supplier, outsourcing, cutting back on costs and paperwork, upgrading your systems, automating where possible, increasing collaboration and creating a positive work environment for your employees.

There are many benefits to streamlining your company’s operations that you might not have considered, including:

• Return on investment
• Increased accuracy and reduced errors
• Accessibility to all areas of your company
• Increased financial control

Check out the 9 tips below that will help you to better streamline your organization’s operations.

1. Decide on the areas you want to improve

   Start by pinpointing the areas of your operation that require the most improvement or that have the greatest potential to bring in more revenue. Once you know your organization’s short and long-term goals, you can begin to set targets and deadlines and explore each phase of the process in great detail. Consult with necessary parties to ensure you’re not missing any important information. You should also be knowledgeable about the root causes of these problem areas so you can better address and prevent them.

2. Use the Top Suppliers

   Your suppliers should be the best in their industry and meet the high standards set by your organization. Using lower-grade suppliers can lead to inefficiencies such as errors or damaged products. You’ll also want suppliers who will communicate effectively.

3. Outsource where possible

   Many businesses are better at handling the areas of your operations that require specific attention. By hiring an outside experienced professional, you’ll be reducing costs and improving efficiency. Outsourcing your supply chain management, warehousing and distribution, cross-border shipping and more, will greatly benefit your organization. Outsourcing allows you and your employees to focus on the core of your business, ensuring you remain as competitive in your industry as possible.

4. Cut back on costs

   Review your operations and find the places in which you’re overspending or losing money. These areas or departments of your business could be detrimental to your operations and cutting back will help you to better manage and achieve your company’s future goals. A supply chain analysis will help you to better pinpoint these areas.

5. Use better technology

   If you’re using outdated systems and technology, it’s time to upgrade to save yourself time and money. Staying up to date is also a preventative measure that will ensure your company won’t become a victim of costly issues such as data corruption. However, updating technology can often lead to lower productivity among employees. To mitigate low productivity you can match your short and long term technology goals to your business objectives.

6. Reduce paperwork

   Reducing the amount of paper you and your employees do will quickly streamline work flow. Paperwork can pile up and lead to wasted time, ultimately causing inefficiencies in your business. It’s important to understand why the paperwork is needed and where it goes, as well as what it adds to your procedures and how important it is to your organization.

7. Create a positive work environment

   If your company’s workflow isn’t streamlined, it’s not only your operations and revenue that are affected – your employees could also be suffering. Retaining your employees with effective operations will ensure you keep productive workers and don’t waste money and time dealing with a high turnover rate. Employees appreciate reliability and communication, however you should also be hiring the best employees who are capable and will improve workflow.

8. Automate certain procedures

   Automating certain necessary procedures will reduce redundancies and repetitive tasks. Certain activities and services can be simplified by putting the proper technology in place. Also, you’ll be reducing the risk of error and clarifying the duties of your employees.

9. Increase collaboration

   Increased collaboration and communication across all areas and departments of your business will greatly improve efficiency by ensuring all employees, suppliers, customers and so on are available interactively. Some ways to improve collaboration across departments include calendaring, videoconferences and to name a few.

Using the right technology and implementing an effective plan will ensure you’re saving money and keeping your customers are happy – as well as providing you with a competitive edge. Using the above 9 tips will help you to improve efficiency in all areas of your business. Set your short and long term operational goals and follow through with top employees and suppliers, efficient and automated procedures and eliminated redundancies. An operations audit can help you to ensure your company is working as smart and effectively as possible.

You can’t run a business blindly. Supply chain visibility is crucial to the success of an organization. However, lack of synchronization in workflow often occurs when the individuals in an organization can’t fully grasp and comprehend the activities and ongoings one level below or above their own place in the supply chain. But it’s possible to increase visibility and transparency across every stage of the supply chain. Create opportunities for individuals in various departments to collaborate and share ideas. There are also a variety of tools and technology that can make it easier to improve your supply chain visibility. Here we examine a variety of factors that can help in this process:

Reduce risks and costs

Supply chain visibility will ensure there are no interruptions in your processes. You’ll be able to quickly respond to any needs throughout the chain, such as redirection of supply. Increased visibility will ensure you can re-evaluate areas of inefficiency and in turn reduce risks such as damaged products and mistakes. Supply chain visibility has been proven to provide a return on investment. As well, companies that offer supply chain management can work with you to find a reliable and cost effective service plan.

Improve performance

Enhanced supply chain visibility will help you to better track your performance expectations and estimate future demands, ensuring you can meet your future goals. Optimizing your performance will open communication among those throughout the supply chain. As well, supply chain visibility will ensure you’re keeping pace with changes in regulation around transportation. Utilizing the latest technology in supply chain management can ensure you stay on top of each task and achieve an analyzable performance.

Identify problems

Increased communication as a result of supply chain visibility will help you to see where gaps exist in your system. Sharing information between departments and organizations can provide an overall view of the entire process. In a competitive market, customers are less likely to tolerate delivery or product errors. Supply chain visibility is crucial in preventing order errors and will prevent customers from taking their business elsewhere.

Supply chain visibility ensures you’re knowledgeable about every aspect of your inventory and allows you to better help customers by improving performance and reducing errors. Putting in place the right infrastructure can help you to achieve better supply chain visibility and therefore reduce costs, improve performance and identify problems, ultimately improving your reputation and growth. If you’re not sure where to start, look to an audit and analytics specialist who can analyze your current supply chain and implement a plan that suits your organization.

A seamless logistics process can help companies improve productivity and reduce their supply chain costs significantly, but many organizations are held back by their vendor contracts. It’s an area in which today’s leaders are now taking a proactive stance, and within this latest post we’ll take a look at why your organization must audit your vendor contracts to achieve optimal logistics performance.

Identifying Volume Order Opportunities
One of the key benefits of the auditing process is that it empowers organizations with the ability to identify volume order opportunities. By auditing their vendor contracts, they can determine how often they order from specific companies and how large a volume of business they conduct with companies over a set period of time. They can then pinpoint their order demands over a long period and complete bulk ordering to minimize expenditure.

Consolidating the Payment Process
When auditing their vendor contracts, companies can find ways to reduce the complexity of the payment process. For example, a firm might have built a specific, multi-step payment structure before a period of growth. They may now have the resources to automate the payment process and minimize their administrative work, allowing them to allocate more resources to other areas of the logistics process.

Eliminating Overcharges and Duplicate Billings
Simple mistakes can have high costs within large contracts. Working with large vendor accounts, administrators can easily make a typing mistake or duplicate an invoice. Administrators might also miss overcharges on their accounts. This can lead to the organization overspending by thousands of dollars per year. The ideal contract audit tool can simplify contract oversight and pinpoint potential billing errors before they impact the company. These tools can also reduce duplicate billings, and help the organization retain strong relationships with their clientele.

Preventing Potential Legal Challenges
Many companies have become embroiled in legal issues and fined as a result of improper payments made by vendors on their behalf. This can lead to a loss of faith in the company, and a long, drawn out investigation that impacts the firm’s productivity in the long-term. A comprehensive and flexible audit process helps analyze vendor contracts for potential legal issues and helps protect the organization against damaging cases in the future.

By auditing their vendor contracts using the latest marketplace tools, organizations can limit their logistics costs, streamline their service to customers, and protect their brand for the long-term. To learn more on the benefits vendor auditing can offer your firm, speak with our market specialists today!

Companies without an effective and cost-efficient supply chain system in place are likely overspending significant on a yearly basis. It’s important for supply chains to be agile and flexible, and companies with an overly broad system are often investing resources ineffectively.

By harnessing their supply chain solutions with precision, companies can now significantly reduce their expenditures while ensuring optimal service for their customers. In this post, our team looks at five ways supply chain solutions can reduce costs.

1. 1. Determination of Optimal Delivery Routes

Companies are overspending on millions each year within their transit budgets. The leading supply chain solutions can now determine the best delivery routes for trucks, helping companies allocate their resources more effectively. This advantage has the added bonus of helping companies deliver their products within a faster timeframe, thereby improving customer service over the long-term.

1. 1. Consolidating Invoicing Costs

The leading supply chain solutions are now making invoicing management more effective and precise. Many older systems still ask drivers to report their hours directly within the system. But leading models are now taking this job away from drivers and logging hours directly through their vehicle via an automated system. Not only is this improving the accuracy of invoicing but it’s also allowing drivers to focus more on their core working role, enhance their on-the-job performance.

1. 1. Streamlined Shipping Processes

The shipping process can add significant time and expense within the supply chain. Companies must optimize their shipping for border control issues and other transit challenges. This means they must complete comprehensive documentation for each order sent to a customer. Now, the latest supply chain solutions are helping firms mitigate costs by automatically completing documentation based on set freight parameters.

1. 1. Budgeting Optimization

In planning their supply chain processes, companies now depend upon the latest solutions for analyzing their budgets and determining the best method for delivery to a specific customer. Budgets can be analyzed and optimized incrementally over a set period of time so that decision makers have actionable reporting data to refine their working processes.

1. 1. Minimizing Costly Errors

Errors in the supply chain management process cost companies millions of dollars each year. Whether it’s incorrectly writing a purchase order or sending the wrong documentation with freight, these errors can now be avoided through streamlined supply chain solutions. Companies can automate many of the administrative tasks that are often the source of errors by office teams.

Supply chain solutions are bringing flexibility and cost-efficiency to the entire logistics process. To discover more on the benefits these solutions can bring to the modern business, call our team today.