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Parcel Distribution cost saving tips

. Distribution & Logistics, Uncategorized.

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Understand Your Profile

Some carriers charge per consignment, others by parcel. If the ratio of parcels to consignments is one to one – it may be more cost effective to use a supplier that charges a parcel rate

International / Domestic

Some carriers specialise in overnight UK next day delivery and others in International Distribution. Use the carrier that is appropriate for your profile, as this will be most cost effective

Documents

Use document pouches for small items – this is more cost effective

Timed Deliveries

Use timed deliveries e.g. by 10.00 AM, sparingly as they are significantly more expensive than next day deliveries. The majority of items will be delivered by noon the following day anyway since the carrier spends most of the afternoon collecting for the following day’s deliveries.

Help Your Suppliers

Minimise the collection and waiting time for the carrier’s driver on site. If you run a tight ship and are an ‘attractive’ account it will provide a good negotiating factor.

Challenge Fuel Surcharges

Most carrriers will apply a fuel surcharge during the year – Challenge these

12 Months Profile

Provide an estimated annual profile of consignments, parcels and weight to suppliers for initial quotation purposes. If this is exceeded then request a price review

Pallets

If sending heavy items by pallet – request a special pallet rate or obtain alternative quotations from specialist pallet carriers

Trailers

If the consignment is not urgent send it by road trailer rather than air – much more cost effective

Automated Despatch Systems

If there is sufficient volumes take advantage of suppliers automated despatch note systems for UK Domestic and International carrier shipments. This prints out consignment notes and enables a database of clients to be stored – saves time.

Expertise

If you do not have the resource to profile your requirements and research suppliers that match your needs, then employ external consultants to investigate this for you such as Expense Reduction Analysts!
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