Guide: 5 Ways to Cut Costs on High-Value Freight
Justyn Faber • December 9, 2024
Guide: 5 Ways to Cut Costs on High-Value Freight
1. Optimize Your Route Planning
Efficient route planning can reduce fuel costs, delivery times, and overall expenses while ensuring timely deliveries.
- Leverage Technology:
Use route optimization software that considers factors like traffic, weather, and tolls to find the most efficient routes. - Consolidate Shipments:
Whenever possible, combine multiple shipments heading to nearby locations to maximize truck space and reduce trips. - Avoid Costly Delays:
Identify and plan around potential bottlenecks such as construction zones, peak traffic hours, or restricted-access areas.
Pro Tip: Partner with a logistics provider that specializes in route optimization to save time and resources.
2. Invest in the Right Packaging
Proper packaging can reduce damage risks, insurance claims, and associated costs.
- Choose Protective Materials:
Invest in high-quality, reusable materials like custom crates, padding, and shock-absorbing systems designed for high-value items. - Reduce Excess Weight:
Use lightweight but durable packaging materials to cut costs associated with weight-based pricing. - Standardize Packaging:
Create a standardized packaging process to minimize waste and reduce material costs over time
Pro Tip: Evaluate your packaging methods annually to identify opportunities for savings or improvements.
3. Use Freight Insurance Strategically
Freight insurance is a critical safeguard, but unnecessary coverage can inflate costs.
- Understand Your Coverage Needs:
Assess the actual value of your goods and purchase coverage that aligns with your risk tolerance. - Compare Providers:
Shop around for competitive rates and evaluate policies from different insurers. - Leverage Carrier Liability:
Ensure you fully understand and utilize the carrier’s liability coverage before purchasing additional insurance.
Pro Tip: Work with a logistics provider that offers in-house insurance for high-value shipments, often at a lower rate.
4. Negotiate Carrier Contracts
Building strong relationships with freight carriers can lead to better pricing and terms.
- Volume Discounts:
Commit to shipping a certain volume or frequency in exchange for discounted rates. - Long-Term Partnerships:
Establish long-term agreements to lock in lower rates and gain access to premium services. - Flexible Scheduling:
If possible, opt for off-peak shipping times to take advantage of lower rates.
Pro Tip: Periodically renegotiate contracts based on current market conditions to ensure you’re always getting the best deal.
5. Leverage Technology for Visibility and Efficiency
Advanced logistics technology can help identify cost-saving opportunities while improving efficiency.
- Track and Monitor Shipments:
Use GPS tracking to monitor shipments in real-time and avoid costly rerouting or delays. - Analyze Freight Data:
Collect and analyze data on shipping routes, costs, and performance to identify inefficiencies. - Automate Processes:
Use automation tools to streamline booking, invoicing, and communication with carriers.
Pro Tip: Choose a logistics partner that provides access to an advanced freight management platform.
Conclusion
Cutting costs on high-value freight requires a mix of strategic planning, technology, and strong partnerships. By optimizing routes, refining packaging, using insurance wisely, negotiating carrier contracts, and leveraging modern logistics technology, you can lower expenses while maintaining the reliability and security your customers demand.
For more insights on how to manage high-value freight efficiently, contact Donovan Logistics today. Let us help you streamline your logistics and boost your bottom line.
In the world of logistics, efficiency is king. For logistics managers, particularly those handling high-value freight, the stakes are even higher. Missteps in routing, delays, or unexpected costs can mean not just lost revenue but damaged reputations. In this blog, we dive into the most pressing challenge faced by logistics managers today: optimizing complex trucking routes for high-value shipments. The Growing Complexity of High-Value Freight Routing Modern supply chains are intricate, with freight often passing through multiple hubs, jurisdictions, and modes of transportation. High-value freight adds another layer of complexity due to stringent security requirements, time sensitivity, and specialized handling needs. Key challenges include: Dynamic Route Optimization Adapting to real-time disruptions such as traffic, weather, or road closures is crucial. Standard GPS tools often fall short when accounting for the unique demands of high-value freight. Regulatory Compliance From adhering to weight restrictions to ensuring compliance with hazardous material transportation laws, logistics managers must navigate a maze of regulations that vary by state and country. Cost Efficiency Without Compromise High-value freight often demands premium services like climate-controlled trailers, air-ride suspension, or dedicated lanes. Balancing these requirements with cost containment is a constant challenge. Minimizing Risk of Theft or Damage High-value freight is an attractive target for theft and fraud. Managers must invest in secure routing, vetted carriers, and advanced tracking technologies to mitigate these risks. The Impact of Inefficient Routing Suboptimal routes or mismanaged logistics can have a domino effect: Increased Costs: Fuel, labor, and penalties can escalate quickly. Delays: Late deliveries can disrupt downstream supply chain activities. Customer Dissatisfaction: In the high-value freight sector, trust is paramount. A single misstep can erode years of goodwill. Proven Strategies for Success To tackle these challenges, logistics managers are increasingly turning to advanced technologies and specialized partners. Some strategies include: Leveraging Predictive Analytics Tools that analyze historical and real-time data can help anticipate potential disruptions, enabling better route planning. Implementing Robust Tracking Solutions GPS tracking, geofencing, and sensor-based monitoring provide real-time visibility and enhance security. Collaborating with Specialized Partners Partnering with experts in high-value freight logistics ensures access to premium equipment, experienced drivers, and established networks. At Donovan Logistics, we specialize in solving complex routing challenges for high-value freight. Our asset-based operations include climate-controlled trailers, air-ride 26’ trucks with lift gates, and warehousing solutions tailored to your needs. With our team of skilled drivers and cutting-edge logistics technology, we help logistics managers achieve efficiency, security, and reliability. And as part of the extensive UniGroup network, we can solve any logistics challenge. Complex logistics problems require specialized solutions. At Donovan Logistics, we thrive on tackling the toughest routing challenges to protect and deliver your high-value freight on time and in perfect condition. Contact us today for a free consultation and discover how we can streamline your supply chain, reduce costs, and enhance customer satisfaction. Let's build a logistics strategy that works for you. Donovan Logistics: Your Partner in High-Value Freight Solutions. Contact us now to learn more!
Donovan Logistics is excited to be the trucking partner of choice for Corning Glass to transport their beautiful mobile Corning Museum of Glass across the country.
I just heard a sad, but all too common story this morning from one of our over the road, Van Operators. He received a panicked call from a friend of his yesterday looking for some advice and probably a shoulder to cry on. This friend is responsible for managing trade show logistics for his company…. ”Harry, we can’t locate the truck that is shipping our exhibit! But that’s not even the worst part! When the driver tried to deliver to the show the other day, he was refused by drayage.” Harry, having years of experience transporting trade show exhibits, knew where this was headed. You see, his buddy only books his tradeshow shipping with a freight broker who outsources to low-cost freight haulers and common carries…not van lines that specialize in trade show transportation. Huge Difference. So, why did his freight get refused by drayage anyway? Well, the freight hauler, not really understanding how the trade show shipping process works, decided to do what he always does. He thought it was a good idea to stack freight from two different shippers directly on top of each other! Not decked…I’m talking stacked. This is a big NO with drayage. They’ll refuse you every time . His friend decided to gamble and go with a low-cost carrier that really has no experience with trade shows. And it ended up costing them A LOT…in this case, they had to cancel their show appearance altogether. They had no time to readjust. So, all in all they paid around $2,000 for their shipment to go from NY to Vegas. (this is extremely low). But it ended up costing them much much more in lost time, booth space rental that they couldn’t use, freight costs, and more importantly lost revenue opportunities that should have been generated from the show. Now the second question was…Where is my expensive booth now!? As I’m writing this, I don’t know if they found the driver yet, I’m sure it’ll turn up. But, I’m guessing this truck did not have GPS tracking, or maybe it does, but it’s broken. If you coordinate trade show shipping for your company, please don’t let this happen to you. Here are a few tips to make sure it doesn’t: Use a carrier, preferably a van line, that specializes in transporting high-value exhibit booths. Make sure that they have years of experience transporting trade shows. They understand how to work with drayage companies, how to check in, understand the importance of target delivery dates and times, and fully understand the move-in and move-out procedures. Check to see how long their van operators have been hauling trade shows. Make sure they have the proper equipment on their trailers. (Decking, logistics bars, pads/blankets, straps). Ask if they have a dedicated trade show group. The best logistics companies and van lines will have local support, a central trade show coordination department and regional onsite reps for most major shows. These reps are vital because they make sure the drivers are checked in properly, have their paperwork, and that you have everything you need. Ask if the trucks have GPS for tracking. (I wonder if they found that truck yet?) See if the company has warehouse facilities in most major cities so you can take advantage of advanced warehousing in between shows- This tactic can reduce your shipping costs. If you have a carrier that does all that, then you should be good to go and the above scenario should never happen to you. Now, while I can certainly empathize with Harry's friend, I still have to scratch my head and wonder...Why risk an important show that has a major upside for your company and your career to save a few bucks on shipping? If you want to learn more about Donovan Logistics and how we help our clients ship their trade show exhibits then schedule a call to see if we’re right for you. (hint, we do all the mentioned above : ) If you want to make sure you are doing everything to maximize your booth shipping, then should check out our Trade Show Shipping Cost Reduction Checklist
Donovan Logsistics recently transported new automated TSA equipment that helps speed the check-in process to Logan airport. Due to the sensitive nature of this equipment, it had to travel in a safe and stable environment. Donovan Logsitcs handled the final mile from our facility in Franklin MA to Boston. Check out the Boston 25 News story about what the these new checkout lanes mean for travelers.
Are you running out of storage space for your excess inventory, aftermarket parts, or high-value products? Do you need a clean, well maintained, local warehouse facility? Donovan Logistics offers short or long-term warehouse storage; order fulfillment programs; kitting and distribution and asset management programs. Also, with our transportation and logistics expertise, we can assure shipments are implemented in a timely manner with destinations anywhere in the world to meet your commitments to your customers, partners and/or manufacturing facilities
Shipping high value freight. Logistics management for high value products
Donovan Logistics named exclusive Mayflower Express agent for New England - Allows clients to reduce costs.
