Every person working in any industry is an expert in his sector. Only in rare circumstances, you will find an individual who can excel in multiple industries. If you work as a distributor of various goods, it is important if you can concentrate on your distribution services and leave experts to handle your logistical services.
Instead of hauling and loading your important goods from the port, you can consider the services of freight broker companies. These agencies don’t only help you to load goods on time, but they save you transport costs. Here are some of the ways through which freight broker companies lower transportation cost.
1. Consolidation Services
One of the strategies that a freight broker can lower the cost of transporting your goods is through consolidation services. You will not be the only person who will be receiving goods from your agent. Other customers want to receive goods on the same day as your company. This helps freight brokers as they can move your goods together and spread the cost between the two of you. This is a strategic method of saving when you are importing goods from another country.
2. Mode Shifting
Load factoring companies may also help you to cut transportation cost through mode shifting. It is important to highlight that different methods can be used to transport goods into your premises. Transportation factoring companies make sure that they look for the best mode of transport that will save you some dollars. Some of the transportation strategies to be considered include rail transport, road transport, air, and water transport. Top transportation factoring companies can help you to save up to 30% through mode shifting.
3. No Internal Transportation Department
Most of the companies have an internal transportation department, which plays a critical role in the success of any company out there in the world. Its primary role is to transport goods from the port of entry to the company’s warehouses. Sometimes goods can be transported from the warehouses to the respective customers. Freight broker companies usually eliminate this problem. They will be handling your transportation cost, which means that you don’t need to have a transportation department in your organization.
4. Avoiding Inbound Transportation Costs
Inbound transportation costs have consistently proven to be an Achilles hills on most of the organizations. For example, buying raw materials to manufacture finished goods is always a complex task for various organizations around the world. Companies usually incur considerable amounts of money when they are dealing with inbound transportation costs.
However, freight broker companies have proved to be sources of reprieve to this major problem that has affected millions of companies around the world. Nearly 28 million small enterprises in the United States depend on freight broker companies to handle inbound transportation costs.
5. Cost Avoidance
Cost avoidance is one of the most important undertakings that you can consider when you are in business. Every company is interested in cutting costs so that it can increase revenues. When you consider freight broker companies to handle your inbound and outbound transportation, you avoid important costs that could have an impact on your business. For example, you avoid loading costs, offloading costs, hiring costs, and truck fueling costs, among other unseen expenses.
6. Time and Workforce Savings
Other important savings that you will get in your company when you consider the services of a freight broker factoring program are time and workforce savings. You will not be involved in the entire transportation system. This means that your workforce will use the time available to enhance the operations of your distribution company. This may seem to be minor costs, but it turns out to be one of the leading savings in a distribution agency.
These are some of the ways you will save on transportation if you consider freight broker companies to handle your inbound and outbound load. These are considerable savings that can have positive impacts on the financial future of your organization.