MINIMIZING FREIGHT COSTS – INBOUND SHIPMENTS

Clients will often negotiate aggressively on the price they pay for merchandise that they plan to offer to their customers. One area of cost that is frequently overlooked by these clients is the cost of inbound freight (i.e., freight cost from the supplier to the client’s facility). Suppliers will frequently mark up the cost of shipping their products to you as a means of improving their margins, or recovering margins that were surrendered during product price negotiations.

By ordering merchandise to be shipped to you on a Freight Collect basis (i.e., charged directly to your freight account), you can avoid paying marked up shipping costs. Further, if you utilize a carrier that offers discounted inbound rates, you can realize additional savings, improving your profitability. We helped one client save up to 15% on their inbound freight by simply routing purchase orders on a Freight Collect basis, and using an account linked to our discount agreement with the carrier. That’s money that flowed directly to this client’s bottom line.

Do you need help with a distribution problem? Contact us, and we will work with you to find a solution for your problem.

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