Making profits is at the core of every business. And reducing costs as much as possible is one way to maximize the company’s profitability.
One area where you are likely to incur significant expenses is in the transportation of heavy machinery. Statistics reveal that motorized vehicles, machinery, and electronics are the most commonly moved commodities by the U.S. freight transportation system.
Truckload logistics can increase your overall cost of production, which means you would have to increase the price of your final product. The more expensive your final products are, the more unattractive they will be to the consumer.
Here are some ways to prevent this ripple effect by minimizing the cost of shipping heavy machinery.
1. Reduce Damages by Ensuring the Shipment is Safe
You do not want to incur more costs in the form of damages as your shipment is in transit. Ensure that you fit the machinery snugly into custom made crates and boxes. Try to consolidate the shipment to as few pallets as possible. It eliminates movement, which can result in damages.
2. Minimize the Dimensions of Your Shipment
Besides reducing the movement of your machinery, minimizing the space your shipment takes helps reduce the overall cost. LTL freight rates will usually depend on the weight and dimensions of the shipment, including the packaging. Ensure that the weight and dimensions recorded are accurate; a mistake could cost you a lot.
3. Check their Liability Coverage
Overweight shipping can lead to damages during transportation. The right truckload logistics company will have adequate liability coverage. It will protect you from the loss that occurs from such damages. You should also always have a thorough look at your shipment upon arrival and immediately raise any issues you may have.
4. Fill the Forms Accurately
Regardless of the transportation service you are receiving from the logistics company, the details on the bill of lading forms need to be accurate. Offering wrong information to save on costs can lead you to pay more in the form of penalties. Ensure your workers are aware of the rules of making declarations.
5. Proper Timing
Although you cannot accurately predict when you will need to make use of truckload logistics, avoid shipping during the holiday period or in extreme weather seasons. Such periods could have you paying more than the standard freight rates. Harsh weather conditions could result in delayed shipment orders, and consequently, delays in production.
6. Compare Offers
Different companies in the logistics industry will offer different prices for industrial machinery transport services. Get quotes from various companies and compare the prices to the services provided. However, keep in mind that the lowest price does not always mean the best services.
Hiring the wrong transportation company could be costly in the long run. Here are some factors to consider when choosing a logistics provider for your business.
What Services do they Offer?
Just because you are currently in need of transporting heavy machinery does not mean your focus should be on truckload logistics only. Check if the company offers a variety of services such as aerospace logistics services, expedited freight services, specialty freight services, or intermodal shipping. You could need these services in the future.
Besides your efforts to guarantee the safety of your shipment, you need a logistics provider who applies similar efforts. They should have a history of ensuring safety when transporting their customers’ goods.
Use of Latest Technology
With the continuous growth of technology, it is only right that the logistics company automates most processes. Utilizing the latest technology ensures that the services delivered are top-notch while costs are kept at a minimum.
In a nutshell, shipping heavy machinery can be costly. But it is necessary, especially in the manufacturing industry. Keep the load at a minimum weight and it should occupy as little space as possible. Avoid shipping during the holidays or under harsh weather and ensure the truckload logistics paperwork is correctly done to avoid penalties.
You can prevent incurring further costs from damages by ensuring the shipment is safe, and the shipping company has proper insurance coverage. And of course, ensure you are getting the best value for your money.