What are the Keys to Minimizing Shipping Expenses?

There is a famous quote from Peter Drucker, an author and leader in modern business management, that says: “If you can’t measure it, you can’t improve it.”

This concept applies directly to you minimizing your organization’s shipping expenses. It all begins with determining how you gather and track those expenditures.

For some companies, shipping data needs to be pulled from various sources to compile and build totals. And For other companies, you might be missing information that actually limits your ability to view complete shipping expense information. Or, perhaps your data is readily available and clearly shows that you are over-budget on freight spend.

Regardless of where you fall on tracking of your shipping expenses, there are multiple places you can look to identify cost-savings opportunities.

Three Ways to Minimize Shipping Expenses

1. Focus on Your Data

For starters, make sure you have complete and accurate data.

  • Do you have full shipment details that include carrier, mode of transportation, pieces, weight, and dimensions?
  • If you have multiple locations, can you account for all shipments at each facility?
  • Do you have full invoice details for all carriers?

Before you can analyze, you must have the full data picture.

2. Perform a Thorough Audit

When you have access to all of the data, you can perform many different evaluations. Consider these examples:

  • Annual Freight Spend by Mode. This will help you evaluate your negotiated carrier rates to ensure you have maximum buying power.
  • Service Level Optimization. Is the most efficient service level being chosen by shipping personnel every time? Are the premium shipments really that urgent?
  • Invoice Accuracy. Are the invoices being billed for the right amount according to your contracted rates? Are there hidden accessorial charges? Was there a custom quote obtained? Is the invoiced amount true to that?

The options for an audit are endless, but these examples are a great start to minimize shipping expenses.

3. Have the Right Software to Support Your Objectives

To support your objectives and minimize shipping expenses, you should focus on two key elements: centralized data and automation. This is where software comes into play. Software not only helps you perform an array of back-end analytics, but it can make your front-end processes much more efficient as well.

Consider these two options for achieving your goals with software:

  • Integrate What You Have. If you already have one or more systems for shipping and another for invoicing and payments, you might be able to avoid shopping for new software. Instead, you can look into integrating what you already have. This can be more cost-effective than you might think.
  • Purchase a System. This does not have to be scary or expensive! There are fully web-based solutions that can accommodate exactly what you need without the features you don’t.

Partner with CloudLogix for Software Support

CloudLogix created a custom software solution called LoadStar that houses all your shipping and invoice data in one place, allowing for full automation of your auditing rules! Loadstar also integrates with your various transportation providers to allow for upfront rate shopping and booking, all from one screen.

By using the LoadStar software powered by CloudLogix, you can make life easier for you and your shipping personnel, all while efficiently minimizing shipping expenses.

Let’s talk about your supply chain operations and discuss the right solution together!