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I fully agree with the answers been added by EXPERTS................Thanks.
Freight is a function of of freight and volume dispatched. Therefore to optimize the freight cost we need to address two main aspect one is
1) Freight rate
2) Maximize the truck utilization
The first thing we should benchmark our freight rate through different techniques like reverse auction and theoretical costing.
To maximize the utilization of truck we should use best fit type of vehicle - for light material we should use long chesis containerized vehicle of high cubic feet volume and for heavy merchandise we should use high weight carrying vehicle with regular cubic feet volume
In secondary distribution we should apply consolidation technique like FRD and FDD.
The most famous model of Hub & Spock model to be used if distribution is done from multiple location to multiple receiving location.
Improve the loading and unloading operation by using automation initiatives.
Use dunnage / packing stuff to avoid the in-transit losses
Shipping products can be something of a nightmare. It requires large amounts of organization, waiting, and costs that can be hard to drive down at times. There are many techniques and ways of operating that can cut down on this cost, both monetary and chronological. Outside of rather obvious solutions, such as setting up protocols and systems to keep things organized and smooth, there are some smart, economical solutions to the problem that freight shipping can present.
Be mindful of the contentDepending on what is being shipped, there can be various costs involved. While most freight costs are generally measured by weight and space constraints, there are other factors to consider when it comes to shipping. Say, for example, that you are shipping 200 micro-processors in packaging film for a large computer server center. While these electronic devices may take up very little space, and weight very little, it would be a good idea to mark them and have them shipped as 'fragile,' as logical processors are very delicate. In this manner it is important to be mindful of what is actually being sent, rather than just the space constraints.
Compress, and compress some moreAs stated in the previous section, space saving isn't everything, however, it is still highly important. Using shipping pallets and pre planned strategies to conserve space can be highly profitable, and convenient, not only for the people sending the shipment, but for those receiving it. Such cohesion and minimalistic use of space can be quite easily accomplished by stretch film. Once a product is organized and set on a pallet, not only does it need to be secured, but it also effectively compressed into a single entity. Wrapping in packaging film is one of the most common means of doing this. Wrapping snugly around the product makes sure that it will not shift in freight transit, but also means that organization is far simpler.
Don't be afraid to set up procedureUse twice the amount of stretch film? Always check with a supervisor before wrapping the pallet? Double check pallet condition? Little rules and procedures like this can occasionally be annoying to the worker, but they can also prevent shipping failures. A late or lost shipment can be a major headache, but what can be worse is damaged products. This is why any sort of management from strict protocols to awareness guidelines can be massively important to the well being of a shipping operation. Professional operations generally have checklists with which all conditions must be satisfied before things are allowed to move forward.
In the end, it generally just comes down to smart management, smart packaging, and smart people to keep a shipment's costs down, and to ensure that the shipment gets from point a to point b without a problem, which is, in the end the real aim of a shipment operation.
