Know Some Techniques to Negotiate Freight with Carriers
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Freight costs absorb a large portion of a company’s revenue, making logistics expenditures among the largest in one operation.
Therefore, negotiating freight with multiple shipping companies in search of good prices – while quality of service is a concern – is essential to make the business more efficient and profitable.
With that in mind, we have decided to list 5 key points to ensure a good selection process and make the best decision. Continue reading to find out which ones!
Know the composition and volume of your loads
Before starting the process of selection of suppliers, the ideal is to collect all the information about the type of product, the composition of the loads, the demand per period, the percentage of fragile or valuable items, among others.
To raise all the information for the elaboration of the contract
A transport contract must have as many details as possible specifying the obligations and rights of the contractor and contractor. This is necessary to protect the parties from any noncompliance.
Make quotations with some carriers
Quoting from more than one carrier (at least 3) helps you identify which one is most cost-effective and, above all, it increases your bargaining power – which helps you get more attractive quotes when it comes to freight.
Negotiate freight with a focus on win-win
For a negotiation to be successful and bring real benefits, one must focus on win-win. In other words, instead of pushing the carrier to offer an irrefutable proposal, the negotiator needs to be prepared to make concessions.
Give preference to companies that invest in technology
Investment in technology streamlines operations increases control over processes, reduces the risk of errors, promotes cost reduction and improves decision-making.
As far as freight is concerned, opting for companies that allow the tracking of items is essential.
This author’s life has been an adventure. He has visited over 30 countries, and lived in four different states. He is a traveler at heart, but he also loves exploring the outdoors on his bicycle or hiking with his canine companion.
