Not only are Freight costs rising, the cost per shipped unit is also rising. E-commerce shipping is only one contributing reason for per unit cost increases. One approach to combat and help offset these rising costs is to look at the density of units shipped per truckload. Shipping packaged air, stuffer materials, excessive product packaging, and excessive product ingredients (i.e. water in laundry detergent) can all contribute to higher freight costs. By decreasing this waste, and increasing density, the cost per unit shipped could be significantly reduced. Plus, this will produce additional savings in packaging materials, fuel, number of trucks on the road, number of drivers need, and lives which could have been lost on the ever increasing busy highways. There are concerns about increased traffic and costs of maintaining roads and highways. By implementing shipping and product packaging changes and regulations, there could be a rippling effect off-setting costs with holistic and systematic widespread improvements. These implemented changes could save a consumer goods company millions, or even more.
Do you want to evaluate how your company can reduce costs? Contact Beacon Grace LLC today at 240-329-9400.