How LTL Shipping Can Help You Save on Costs
Less-than-truckload shipping, commonly known as LTL shipping, provides an alternative method to full-truckload shipping that can significantly save on delivery costs once it is fully implemented. The initial costs and processes involved in setting up LTL shipping can seem daunting; you may have to learn new software or require additional training for your organization for a new transportation management system (TMS). However, the TMS that is dedicated to LTL shipping can further eliminate frustrations and reduce costs associated with full-truckload shipments and smaller package freight by combining all your key performance indicators in a single tool. Plus, with the help of a third party carrier such as Econo-Courier, you have nothing to worry about as they handle the work for you. Here’s a few areas where LTL shipping and its associated TMS can save you money in the long run.
To justify the switch to LTL shipping, typically return on investment is used as a measure of it’s worth. While the initial costs of switching from full-truckload to LTL shipping may seem to overshadow the benefits, the long-term cost of operating under an LTL model is dramatically lower than full-truckload shipping when it comes to smaller shipments and shorter distances. Savings can be expanded even further with the use of a dedicated TMS system.
Customer satisfaction is directly linked with the success of a business. LTL shipping can reduce the delays that come with using full-truckload shipping to get products to customers on time. Even in the case of on time shipments, full-truckload shipments are more susceptible to damaged or incorrect shipments, affecting your business in the form of insurance claims and/or additional processing.
Having enough reliability insurance can make or break the operations of an organization, considering the excessive fines that one could experience for failure to maintain financial responsibility that could potentially hurt a business. The process of obtaining and keeping track of the appropriate policy for LTL shipping can be streamlined through the use of a dedicated TMS, allowing a business to select the most cost effective option that provides adequate coverage for the needs of the business.
A dedicated TMS for LTL shipping can track KPIs and analyze metrics to determine the performance of particular parties along the shipping process. An organization that performs routine audits to ensure all orders are fulfilled correctly and quickly can reduce delays and inefficiencies, thus reducing costs and identifying potential problems before they reach the point of requiring government auditing. This same concept can be applied to individuals or teams within the organization, allowing management to reduce costs and determine if additional training is required. Because LTL shipping may involve multiple organizations, the best way to carry out internal auditing would be a third-party logistics provider or a dedicated TMS.
Need a local courier service for your shipping needs? Econo-Courier has been providing personal and reliable service, including LTL shipping, to the New York metropolitan area for over 45 years. Contact us today with any questions or to create an order.
75 Lackawanna Ave, Unit B
Parsippany, NJ 07054
Phone: (800) 526-9094