If you’re using LTL freight shipping, you’re already one step ahead of the pack. By using Less than Truckload (LTL) shipping instead of Full Truckload (FTL), you’re taking advantage of the cost savings of bundling your shipments without having to bulk up to a full 48- or 53-foot trailer. But are there more ways you could lower the cost of doing business this year? Keep reading to find out three ways you can save money on Less than Truckload (LTL) shipping.
Get Educated on the LTL Freight Shipping Industry
If you’re looking to save on the cost of LTL freight shipping, the first thing you need to do is understand some of the common terms of the industry. Having common language with those you’re negotiating ensures there are no misunderstandings. Add to that the confidence you’ll have during the process, and you’ve got a winning strategy for LTL success.
Here are five “need to know” terms:
- Carrier: The company that utilizes trucks and trailers to move your goods from place to place. Common carriers include; Con-Way, Old Dominion, and ABF.
- Cosignee: The location where, or the person to whom the shipment will be delivered.
- Freight Class: The category your shipment is classified under according to the National Motor Freight Traffic Association (NMFTA) according to the size, fragility, and value of your shipment. This value is used to determine the shipping charges from the carrier.
- Less than Truckload (LTL): A freight shipment that does not fill up a full 48 or 53-foot trailer. Using LTL shipping can help you save money by giving you a freight discount even though you don’t have a full truckload (FTL).
- Shipper: The person named in the “bill of lading,” such as an exporter, seller, or cosigner.
Use a 3PL for your LTL Freight Shipping
A 3PL or Third-Party Logistics Provider is a company or individual who facilitates the relationship between you and the carrier. This company can do a variety of things from negotiating better carrier contracts, navigating the fastest and most affordable shipping routes, and even offering suggestions for improving your logistics processes.
What a 3PL is most useful for is streamlining and simplifying your shipping process. Without a 3PL, a project manager will need to create a full process for your product from the moment it leaves the warehouse to its final delivery destination. A 3PL can handle this entire process for you so your team is free to work through improving processes, bringing in new business, and improving client retention.
Use an Integrated 3PL Software for LTL Freight Shipping
If you want a more hands-on approach to running your business, using a 3PL software can help fill in the gaps. Depending on which software you choose, you could have a system that fully integrates all of your processes in one web-based system.
For example, Amrate – a proprietary web-based 3PL software platform from Amware – provides shipment tracking and tracing, freight bill auditing and payment, customized reporting options, real-time carrier management, claims resolution, and quoting all in one bundled product. While you may not need all of the functions of the system, its all-encompassing nature makes it easy to scale your business.
Get more cost-saving tips for LTL freight shipping today. Contact the team at Amware, or request 30-days of Amrate for FREE below.