How can you cut your freight forwarding cost?

One thing that affects a product’s landing cost is how much cost and time is involved in the freight forwarding process of a product. Freight cost is a massive decision maker especially when it comes to pricing strategies and determination of MRP. Optimization of freight forwarding operations by cutting down associated costs becomes imperative.

1. Collaboration
Focusing more on your core competencies and leaving the freight process in the hands of experts in the field is the way to go ahead if you seek to reduce costs and increase returns. With their right connections and flawless handling, a freight forwarder will manage your freight requirements better. From the perspective of cost, it is a beneficial move to collaborate with a freight forwarding partner.

2.Yearly Fixed Contracts
Maintaining constant prices is paramount for any business, and they should seek to do away with any cost fluctuations as far as possible. Signing up an annual contract assures a fixed cost to be tagged to freight services and therefore minimizes its impact on your ultimate MRP. Yearly agreements also come with more economical options in comparison to contracts for shorter periods of time.

3. Road-map
Expert freight forwarders put their experience into use and ensure sufficient availability of inventory at your helm without having the urgency to transport via the expensive air route. These agencies plan out your requirements way ahead in advance to avoid any last minute hassles and going overboard on cost.

Complete, accurate and timely documentation will prove highly beneficial. Documents in orderly fashion ensure there are no custom clearance delays or demur-rage charges to your account. Proper documentation, in turn, make sure that you stay put from unexpected costs related to the documentation process. These expenses can add up to be massive financial burdens if ignored.

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