Drive Transportation Savings with Mode Optimization
If you’re looking to streamline your supply chain and save money in 2018, mode optimization is a great place to start.
Drive Savings with Mode Optimization
Simply put, mode optimization means putting the right-sized shipment within the right-sized mode, whether it be LTL, TL, or intermodal.
Many companies make their decisions based purely on physical weights of multi-piece shipments.
Do you have a policy in place where all shipments less than 150 pounds are sent via parcel and anything greater than 150 pounds ships LTL? Or do you think hundredweight is not an option because your shipments won’t all arrive at the same time (as opposed to a palletized LTL shipment)?
Less-than-truckload (LTL) shipping can be an efficient and affordable shipping solution for freight that weighs between 150 and 20,000 pounds. Have you heard of lightweight LTL or 100 Weight? Lightweight LTL shipments weigh more than 100 lbs. but less than 1,000 lbs.
The key to driving consistent savings is collaborating with your carrier and exchanging the most recent shipping data to create a repeatable process. Evaluate the following factors to determine the best mode choice for you and your freight.
- LTL accessorial charges, such as fuel surcharge
- Dimensional weight
- LTL minimum and small parcel hundredweight charges
- Characteristics of commodity or goods
Carriers and shippers don’t always do what’s best. Instead, they do what’s easiest. Shipments that are considered “in between” and could go LTL often wind up costing more in the parcel space.
The goal is simple. Put the right size shipment on the right size truck because the cost between them can be considerable and the definition of “right” depends on the requirement, time frames and load of the cargo. Streamline your supply chain and evaluate your modes for potential savings in 2018.
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Mode Optimization Assists With Efficient LTL Shipments
When this hospitality company struggled with on-time LTL service at their hotels in Ohio, they began to analyze their current shipping environment and sought expertise from PITT OHIO to formulate a solution. Download Now!
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