One of the most challenging dilemmas facing many producers is how to get their product out of the warehouse and into consumers’ hands. Variable shipping prices can make controlling costs difficult, if not impossible. That’s where the process of load tendering comes into play. Here’s a closer look at the best practices for load tendering.
At its core, load tendering is the process of offering cargo to multiple carriers in order to find the best rates while allowing shipping companies the ability to accept or reject the offer. The practice is helpful for producers because it helps to assure contract compliance and provides a mechanism for automating payments to the carriers. This allows communication throughout the delivery process by providing carriers with detailed load information to distribute to suppliers and customers.
Focusing on the fixed costs while shipping helps keep the rates lower. These set prices, including the mileage and destination, make up the majority of costs. Try to mix and match the variables until you find one with the shipping rate that fits within the budget.
Most of the variables with price fluctuations have only a small impact on the freight’s price tag, with a combined total accounting for less than one percent of the total shipping cost. The day of the week has one of the most significant individual effects of these variable prices. Typically, shipping mid-week has the lowest cost, while weekend shipping obviously comes at a significantly increased rate.
The next suggestion in our list of the best practices for load tendering is to provide the carriers plenty of time before the scheduled pickup date. The more time that’s allowed, the lower the rate is likely to be. Like being selective with the day of the week, providing ample lead time for the carriers often leads to cost savings.
Finally, be sure the freight falls within the routing guide for whatever retailer is purchasing the products. This document establishes the requirements for shipping items between producer and retailer. A routing guide allows buyers to ensure product uniformity across all products they purchase.
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