Inbound Freight Savings Program
How to get started down the path to savings…
A confidential, free of charge analysis is conducted to determine your current freight costs and operational requirements.
A comprehensive findings report is developed that outlines opportunities to reduce your inbound freight expenses, improve control, and access management information. Other value-added services that will be discussed and used to make this process easier for you are automated vendor routing, enforced compliance, freight bill auditing, and management reporting.
By participating in an inbound freight savings program, typical savings range between 15% - 24%.
How your shipping activity is managed…
For freight inbound to your warehouse location(s), a routing guide will be issued to your vendors advising them on the most cost effective way to ship your freight.
Your inbound freight vendors can choose to utilize either the online freight system to create bill of ladings and schedule shipments with the carriers, or custom Bill of Lading that is created specifically for your account.
After the shipment is made your key employees can track the status in the online freight system to determine what purchase orders are coming inbound to your warehouse location(s).
On a weekly basis all of your carrier billing will be audited for accuracy, and a consolidated invoice would be provided to your company. No more processing of a multitude of individual freight invoices.
On a monthly basis your company would be provided reports which project savings, monitor on time performance, and track claims ratios.
For more information on how you and your company can get started in saving money through an inbound freight cost savings program, call Jeff Barry at 804-740-8743 or email him at jbarry@fcbco.com.
Outbound Freight
UPS, FedEx and DHL have increasingly made it more difficult for you to reduce freight costs to make your shipping rates low for your customers buying from you. Each time there is an increase in rates there seems to also be a wave of surcharges and incidentals that make it onto the list changes as well. If your carrier rates are negatively impacting your business or how your customers shop from your business, we urge you to contact Jeff Barry at (804) 740-8743, via e-mail at jbarry@fcbco.com, or use the "Request Information" at the top of this page. Find out how we can assist you with a FREE Freight Rate Analysis immediately.
A Freight Rate Analysis can be conducted using your historical data and volumes to determine where cost savings and lower rate negotiations can be made to your UPS, FedEx, and or DHL contracts. Inbound freight rate analysis and contract negotiations are also available for your business as well. Don't lose customers over high inbound and outbound shipping rates, call us today!
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Small Package & Freight Management Programs
When it comes to negotiating transportation contracts, knowledge is power. Information and expertise drive results in negotiations. Carriers are constantly making changes to their services and pricing strategies. Understanding the contracting and pricing process has become increasingly difficult even for the experienced logistics professional.
We will provide your company with the opportunity to improve your freight programs and reduce your overall shipping costs. Consultants doing the work specialize in postal, small parcel, express, freight, trucking, and international services. They will assist you in accomplishing significant cost-savings through one or all of the following services:
Industry Knowledge: We bring to our clients consultants who have the combined knowledge and expertise of former senior and regional pricing and sales executives from UPS, FedEx, DHL-Airborne and other major carriers, forwarders and trucking companies.
We use the knowledge and experience of consultants combined with advanced analysis and data modeling. Consultants will assess exactly the type of pricing your company may qualify for and create an agreement that fits with your strategic objectives for distribution. They will provide on-site assistance during the negotiation process to make sure that you receive the discounts you deserve and the service levels your customers expect.
Negotiating Strategy: Consultants will either lead or coach you to achieve the optimal transportation agreements.
Consultants conduct a focus session with our clients to map out our approach for results pertaining to client distribution, contracts and appropriate negotiating strategy to reach your objectives. The consultants will execute work on a “permission only” basisor coach our clients through their own negotiations. Our negotiating philosophy is win-win for both client and carrier; our goal is to improve the working relationship.
Carrier Rate and Contract Analysis: Consultants model actual shipping data to gain an understanding of your business that is equal to, or better than the carriers pricing data.
A complete breakdown and spreadsheet analysis of your shipping patterns and costs will be completed to determine where there are areas for improvement in your current agreements.
Proposal Analysis: Consultants provide detailed analysis of each carrier proposal that accurately identifies the actual cost of each offer to our client.
Each carrier uses different rate tariffs, accessorial policies and pricing, discount structures and has differences in stated service offerings. We have not found another company that matches our consultant’s ability to accurately assess a client’s true total cost of transportation.
Carrier Neutral: Consultants take the bias out of the decision making when assessing a carrier proposal and contract.
The consultant’s summary provides an accurate, unbiased overview of each carrier offer, benchmarked against the company’s distribution strategy. Our client always makes the final decision.
Implementation: Consultants have been involved with over 850 contract implementations ranging from simple reviews for local businesses to advanced carrier negotiations for companies exceeding $100 million in annual transportation spend.
Many companies are missing out on significant potential savings due to problems with implementation. Small differences in service levels and system constraints can turn a great decision into a poor decision if an experienced industry expert does not manage implementation.
One of the most compelling reasons to hire a consultant is that the compensation is based on specific measurable results. Unless the consultant delivers new savings, the services are free under the gain-share agreement. The consultant is compensated based on a percentage of the actual, verifiable new savings.
Extensive transportation management experience with the nation’s largest and most respected carriers will provide you a distinct advantage when it comes to negotiating competitive freight contracts and rate programs.
Freight Cost Reduction Analysis Articles
What Are Your Shipping Options?
In the next few weeks, all the carriers will complete their 2008 pricing announcements. As we look at the future, it’s probably a good bet that these carriers’ rates aren’t going down any more than the cost of oil. So what’s the impact and action plan for your business? Read more...
Rising Transportation Costs - and What to Do About Them
For most multichannel merchants, transportation of goods is the highest operational expense. Inbound freight costs for domestically sourced product typically range from 2%-4% of gross sales, while for imported product, inbound freight costs 6% to 12% of gross sales. Outbound transportation costs typically average 6% to 8% of net sales. Read more...
The Fulfillment Doctor on... The Price of Free Holiday Shipping
What are the underlying reasons behind offering free shipping and processing to customers? Is this common practice in other companies in the multichannel industry? Can anything positive come from giving free shipping to our customers? Read more...
Read more related articles and whitepapers
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Freight Cost Reduction Analysis Blog Posts
Tue, 18 Nov 2008 19:42:37
2009 UPS and FedEx Rates Special Report
F. Curtis Barry & Company’s 2009 UPS and FedEx Rate Special Report highlights some of the rate increases that will effect your shipping and business in 53 days. The question to ask yourself when reading this Special Report is, “have I done everything that I can to prepare my company for these rate increases?”
Overall Rate Read more...
Thu, 02 Oct 2008 18:49:18
Is It Time For Free Shipping?
As I started to write this, the House of Representatives had failed to pass the Bailout Bill, adding one more giant dent in consumer confidence.
Luxury retailers have finally starting feeling the pain that other retailers have been experiencing. Neiman Marcus posted a $35.7 million loss for the quarter ending August 2, and warned that the Read more...
Tue, 23 Sep 2008 21:02:08
Industry e-Newsletter from ACMA
Dear Members and Friends:
It has been a couple of months since our last industry general update. While the summer months are typically a slower time, this period has been anything but. The pace of change at the USPS continues to accelerate with numerous issues that affect cataloging moving one way then the other, Read more...
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