11 Steps to Reduce Your LTL Costs

These 11 steps are a combination of good internal business practices and processes, Carrier-friendly best practices, and technology-enabled operational processes.

Some take cost out of your operation; others take cost out of your carriers’ processes which can convince them to provide you with better rates.

Many of these are “Quick Wins”—changes that can be made rapidly and with little or no cost to your organization. Taken together, they form a holistic LTL cost reduction program.

1. Benchmark your current LTL rates.
2. Gain “preferred shipper” status.
3. Utilize a “shipper centric” customized base rate tariff that reflects your shipping patterns.
4. Utilize lane matching principles that route your freight with the “right” carriers.
5. Utilize a “shipper centric” contract.
6. Review your sales order polices regarding minimum order size and frequency of ordering to encourage the largest size shipment possible.
7. Explore the use of load consolidation software or pool points to build larger shipments for as much of the transit distance as possible.
8. Utilize rating, routing, and performance reporting systems to guide carrier selection and monitor routing compliance.
9. Review inbound terms to identify opportunities to reduce costs by unbundling vendors’ product and freight costs.
10. Be open to change carriers.
11. Review your packaging.