Reduce Freight Expenses
Neglecting to closely monitor your freight costs, especially within Less-than-Truckload (LPL) and Third-Party Logistics (3PL) services, can lead to substantial financial overspending. A pivotal approach to combat this is by “Identifying hidden fees in your LPL and 3PL freight services.” While the task of scrutinizing these fees may not initially seem appealing, the potential savings from uncovering these hidden charges are significant. This detailed examination is crucial for effective financial oversight and for ensuring that your freight expenses remain manageable.
Dive Deep into Your Freight Routes & Invoices – 3PL and LPL
Begin with a comprehensive analysis of your Freight routes and business needs. When you deeply investigate your company’s freight – LPL and 3PL services, a revealing picture often emerges, typically riddled with hidden fees, excess routes and instances of overspending.
It’s essential to meticulously review your freight costs from a whole-picture perspective. This investigation can uncover various undisclosed fees and surcharges that, once identified, can be challenged or eliminated in subsequent dealings. Engaging in this practice not only assists in minimizing current expenses, but also paves the way for securing more favorable contract terms in the future, setting the stage for a more cost-effective freight management strategy.
LPL and 3PL Freight Expense Review and Optimization:
- Renegotiating Freight Contracts
- Analyzing Freight Volume and Efficiency
- Integrating LPL and 3PL Services for Enhanced Efficiency
- Eliminating Redundant or Unnecessary Freight Services and Routes
- Optimizing Packaging and Loading Techniques
- Conducting Thorough Invoice Audits and Managing Disputes
- Refining and Optimizing Freight Routes
- Switching to More Economical Freight Carriers
- Utilizing Cloud-Based Freight and Logistics Management Tools
- Implementing Advanced Freight Cost Management Software
- Consolidating Freight Loads and Streamlining Provider Use
- Securing Volume Discounts for Bulk Freight Movements
Case Study: Outdoor Equipment Manufacturer Freight Cost Reduction
A Wisconsin-based outdoor equipment manufacturer sought to optimize their supply chain but recognized the need for specialized expertise to identify possible efficiencies. They turned to Alliance Cost Containment (ACC) to assess and optimize their logistics operations.
ACC embarked on an extensive analysis, examining a full year’s data on the manufacturer’s routes, freight shipments, and associated costs, including transportation, ancillary fees, and fuel surcharges. Through this meticulous examination, ACC was able to construct a detailed landscape of the manufacturer’s logistics and spending, laying the groundwork for informed strategic changes.
With this comprehensive analysis in hand, ACC collaborated with leading freight companies, holding in-depth review meetings to leverage the data gathered. The result was a newly crafted logistics program designed to enhance procurement, incorporate advanced transportation technology, and secure improved pricing structures.
Key to the program’s success were the special end-of-month procedures that ensured timely departures of logistics shipments from the warehouse, which in turn enhanced the manufacturer’s billing cycle and cash flow, and reduced late shipment penalties. The manufacturer’s adoption of ACC’s recommended logistics provider resulted in a remarkable 9% savings on Less-Than-Truckload (LTL) freight costs. Additionally, ACC’s efforts in re-bidding small package and express shipping services culminated in an extra 11% annual savings, underscoring the value of strategic third-party logistics partnerships.
Rest Assured…
We understand the concerns that may come with the thought of reducing LPL and 3PL freight costs amidst other indirect spend. We want to assure you that:
The choice to switch freight carriers remains in your hands, based on what suits your business needs. Our team is committed to undertaking the meticulous work involved in optimizing your freight costs. With our strategies implemented, your company benefits from a more efficient method of managing LPL and 3PL expenses.
Our negotiating power and deep industry knowledge are utilized to turn freight expense management into an operational advantage for your company.
We are experts at simplifying the complexity of LPL and 3PL freight cost reduction, ensuring that you can transition to more cost-effective and proficient freight solutions seamlessly, without any disruption to your day-to-day business activities.
LPL stands for Less-Than-Pallet Load:
It is a term used to describe shipments of merchandise or goods that weigh less than 1,000 pounds. LPL can occur when the units on a box do not build a full pallet. In some cases, LTL carriers may repack the boxes with others to create a full pallet.
Third-party logistics, or 3PL, is:
The outsourcing of ecommerce logistics processes to a third-party business. 3PL services include:
Inventory management
3PL warehouses store a company’s products before shipping them to consumers.
Fulfillment
3PL warehouses provide a range of services, including order processing, shipping, receiving, and storage.
Reverse logistics
3PLs are typically set up to receive and ship goods in an efficient way. This includes managing customer returns and product disposal, such as special items like batteries.
Get Started
We collaborate with across sectors and industries, focusing on Freight Cost Reduction, Logistics Expense Reduction and LPL and 3PL Optimization — plus other areas of indirect spend.
Allow us to thoroughly analyze your freight vendors and other indirect expenses.
Our compensation is tied directly to the savings we deliver to your bottom line, confirmed through our exclusive on-going audit process.
Reach out to ACC for a personalized, no-cost savings evaluation.
