2 Tips for Managing Freight Costs

Apr 03, 2012 5:27 AM  By

Controlling and managing freight costs can be a real struggle for smaller companies, says Marie Lapetina, director of operations for Design Master Associates. Lapetina offers two tips for small merchants to consider when managing their freight costs.

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Regardless of whether your freight is predominantly small parcel or less-than-truckload, it is important that you take a look at re-negotiating your freight contracts often. “It’s easy to get comfortable with one or two carriers and become complacent when it comes to rate negotiations. This can cost you tens of thousands of dollars. Use a consultant to help you or to validate your costs and help write a request for proposal.”

Lapetina recommends meeting with primary carriers to review rates and services on an annual basis or at any time there is a tangible shift in business needs. “Investing the time once every year or so with carriers often results in an improvement in costs, services or processes that can really benefit your company.”

If you want to know more, Lapetina will be speaking on this topic at the Operations Summit in Memphis May 2-3. For more information, go to www.operationssummit.com.