Minimize the High Cost of Transportation

These five best practices could help you beat the rising cost of freight transportation.

Rising fuel costs are "a grim reality" for manufacturers, and anybody else trying to transport products, says John Haber, EVP of transportation consulting services for spend-management consulting firm NPI. "One question is whether companies are doing all they can do to insulate their business and their customers. In most cases, they aren't."

Haber suggests that companies can minimize transportation cost increases by following these five best practices:

  1. Find out if you're paying a fair price for fuel.
  2. Consolidate shipments and switch modes.
  3. Re-evaluate service selection to determine the most cost-effective method to ship your products.
  4. Closely watch carrier capacity and be prepared to renegotiate carrier pricing when their shipping volumes decrease.
  5. Offset price increases outside of transportation, particularly in such areas as telecommunications, IT and energy.

See Also:
Shareholders Press Manufacturers to Disclose Their Sustainability Efforts
How to Measure Your Suppliers' Sustainability Efforts

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish