Freight costs can often take up a big portion of operational costs for companies, as a company grows and expands, it is important to try and cut back at unnecessary costs that may be eating away at your profit. With a keen business sense, resourcefulness and careful planning companies can in fact lower their shipping costs.
The first step that any company would take is to shop around for a freight forwarder that is both trust worthy and affordable. It is however important to not jump at the first forwarder offering the best price, the cheapest option may not always be the most reliable option when it comes to getting your products to the client undamaged.
Finding a suitable forwarder is not where the process ends. It is crucial for any organisation to familiarise itself with different modes of transportation, as not all materials can be transported in the same manner. Knowing transportation costs for your products will help you understand the best choice based on the budget and time constraints.
Organisations can also look into consolidating their shipments. “By consolidating shipments from various organisations to one country may time more time to reach you but may also prove cost effective” says Ryan Burgess, Director of Pioneer Freight.
It is important for any organisation shipping over their items to insure their shipment. “Nature is an unpredictable force, and anything can happen whilst your items are mid transit” says Ryan. It is estimated that in a 6-year period, from 2008 to 2013, an average of 1679 containers went missing due to human error and natural disasters per year.
By educating yourself on international outsourcing costs, these costs will include duties, brokerage, carrying costs etc. as well as additional added on costs in forwarding, organisations can estimate this additional value before purchasing stock from certain countries. “The best advice for any organisation looking to import and export is to make use of a third-party logistics company, like
Pioneer Freight” says Ryan, “third party logistics agencies will advise on the best shipping methods and will ensure that you receive ultimate supply chain management.”