Logistics costs are a key part of an organization’s total cost structure. Focus should be placed on renegotiating transport and freight prices, reducing the total costs of freight and simplifying operations. Six best practices should be practiced in order to minimize costs by most companies.

New carriers: Constant monitoring of market rates is a good idea. In general, logistics administrators enter with established carriers into a comfort zone. This results in a shrinking cost. Market rate checks will reveal other cheaper activities. New carriers with their quotations will be more versatile.

Costs of freight: There are several ways for the optimisation of freight costs. The minimum billing renegotiation for a region should be investigated to a minimum. Another valuable method to simplify freight costs is product distribution coordination. The USPS and Canada Post are today offering viable solutions for small parcels. The best rate/best ratio is provided in arrangements with a variety of smaller local carriers. Internet provides excellent instruments to compare and optimize freight costs

Improve shipping and receiving: Streamlining shipping and receiving activities would bring significant savings. This can happen through reduction of window time for receiving. Mandatory delivery appointments should be the starting point. In order to assess waste processes and combine current processes, a flow map must be generated of all operations.

Technology: Internet technologies make paperwork significantly reduced. Customs, ports, etc. search and e-mail the documents. Documents must arrive at least twenty-four days in advance if cross-border trading is to prevent border delays. Technology also has the ability to customize loading for all shipments.

Reverse logistics is an important feature of freight costs management. Reverse logistics. Most firms deliver a scheme of liberal returns. If the commodity is not fulfilled by the client, 30, 60, 90 days, depending on the salesman, can be returned. The vendor also also arranges to get it. The cost of reverse logistics processes must be rationalized to mitigate

Framework verification: Use of specialist companies to audit freight bills post-payment. Typically, these agencies are paid in return. The audits can provide useful insights into trends and more prospects for cost savings.

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