you know one of the most common questions that I get asked is how can I
reduce my freight costs so in this video I'd like to give you some starter tips
on how to do exactly that if you're wondering where we are
this is sydney harbour it's 7:00 a.m. in the morning we came up here just to
watch the sunrise over the Pacific which is pretty cool I thought this would be a
great place to show you a bit of sydney and talk about freight costs
okay so that most common question I get how to reduce my freight costs and let
me give you three things to think about just while we're here it's a Sydney
Harbor if you've never been to Sydney an amazing harbour we thought we'd come out
here at dawn to shoot this one so we're just watching the sunrise over the
Pacific I can't see it now it's going around the corner but a huge cruise ship
just came in so reducing freight costs what's all that about the first thing
that people generally try to do is to attack the rate itself what do I mean by
that well it's the dollars per ton the dollars per pallet whatever that you're
paying and they tried you know let's say they paint $30 a pallet for delivery and
they try to get 29 or 28 that's really not the way to go about it because you
need to realize first that Freight is freight transport is very low margin and
if you're just trying to attack the price you're really not going to get
very far what you've always got to do is to try and reduce the cost to the
freight company and therefore the price to you so a couple of things to think
about first of all are you paying the right
rate structure let me just move around here out of the Sun so by that I mean
are you paying a ton rate pallet rate is that appropriate to your Freight profile
so for example if you're paying an hourly rate for deliveries is that
necessarily going to create the right behavior in the transport company to get
your deliveries done efficiently so think about the rate structure whether
it's return propellor per carton and try to make sure that that is appropriate
for your Freight profile the other thing is to think about is the priority of
freight that you're paying for are you using
excessive amounts of air freight or express freight when actually general
road freight freight could do so how we'll go back through your invoice
history and see which different sort of priorities you're paying for which
speeds our Freight if you like and make sure that that's appropriate because
very often the people who are booking the freight will book a higher priority
than is really needed the final thing to think about is to think about how you're
presenting your Freight to the freight company is it easy for them to handle to
load into the vehicles and so on so for example if you have some
really fragile product that's palletized and it's so fragile you can't actually
put other pallets on top of it you're going to be playing for two pallet
spaces in that vehicle you're paying for the volume of the vehicle that you're
occupy likewise if your pallets are stacked in such a way of and then
shrink-wrapped or whatever and they're uneven on the top and they can't put
another pallet on top again you're gonna be playing for two pallet spacers so
think about how you're presenting your freight to the transport company and
make it as easy as possible for them to maximize the capacity of their vehicles
so three quick things to think about it's really not about the rate itself
make sure you're paying the right rate structure make sure you're paying the
right speed or priority of freight and think about how you're presenting the
freight to your freight carrier so if you find this helpful do like and share
and make sure you hit the subscribe button I'll be talking a lot more about
Freight as well as lots of other supply chain logistics topics thanks for
watching