Avoiding ‘Hidden Costs’ when selecting a Freight Service Provider

The old saying that ‘the cheapest price does not always mean the cheapest cost’ is very true.  Just look at airlines and the ‘hidden cost’ of airport taxes and fuel surcharges for example. 

So it often is with the transport industry too.  We all know that the ‘cheapest price’ provider can end up being the most expensive solution in the long run, because of the tangible and intangible costs of doing business with an ‘average’ or below average operator. 

So let’s look at some of the ‘hidden costs’ when selecting a freight service provider, and just as importantly…what factors to look at that can really save you money.  Let’s face it, ‘a penny saved is a penny earned’ is just as true today as when it first entered our language.  So any costs that come your way due to bad choices, or sticking with an underperforming carrier, translate into ‘before tax’ dollars that you have to generate through new turnover to make them up.  Bad choices cost you twice as much.

Seek the best advice

Savings to freight users come in a number of forms. Wise customers understand that there are many hidden costs in road freight, commonly time, money, spoilage and stress. An experienced operator knows and understands the real cost of these factors to their Customer who is also business operator. That is why it is prudent to seek a quality freight services provider who is skilled at creating efficient logistics solutions. 

Let’s face it professional pride stops many people from seeking advice.  They have the attitude that ‘I know my business best’.  Well that may be true, but only strictly inside your business.  Outside of that there are experts who deal with many other Customers just like you and over a broad geography.  So the chances are that professional pride or simple lack of awareness to go out and ask for an alternative solution, is costing many freight users a lot of money.

And it is not just ‘asking for 3 quotes’.  It requires that you ask someone to properly assess your freight needs (including things they know about, that you are not aware of), and create an efficient logistics solution that is the most cost-effective to your total business needs, not just the cheapest freight.

It’s simply called ‘logistics consulting’ and it can save you money big-time.

Money

Some business owners think that by doing the haulage themselves that they are saving money. However a careful cost/ benefit analysis often reveals the flaws in this thinking. Likewise, historic freight arrangements may also be costing a business more than is necessary. A quality freight services provider will have the ability to analyse the real cost of freight will quickly identify savings if they are available. Money saved is money earned.

Spoilage

Lost stock due to spoilage or damage does not have to be part of the cost of doing business. A quality freight services provider’s customers enjoy the knowledge that their goods are transported with care and (if needed, in a chilled) an environment that is the most suitable to their safe and undamaged arrival in optimum condition. The value of the goods lost or devalued due to spoilage plus the cost of their transport is a double loss that customers do not need to bear if they audit their freight services providers performance.

Stress

Most stress occurs for a business owner when things get out of control. A quality freight services provider’s customers enjoy the stress-free knowledge that their logistics arrangements are being managed by the best in the industry. They need to be able to demonstrate that they take this trust seriously and have systems to ensure that your value is maximized without the hassles.  Stress kills.  It just doesn’t just kill the enjoyment of doing your business, it also affects you health.

Conclusion

It takes very little trouble to contact one of the few quality freight service providers who are adequately qualified to provide this sort of service.  If you were looking for advice on any professional service then you would look for certain indications about their bona fides.  How long have they been in the business; what type of Customers do they have; do they have the equipment, manpower and geographic coverage to suit you; what do their Customers say; do you like them and feel you could trust them?

If you can have a conversation with them and come away with the right answers to these questions, then you probably have a chance of getting the best solution for your business needs.  And you WILL save money as a result.

For your complementary logistics consultation on your freight needs, contact:
 
Zac Popov (Managing Director)
Mobile – 0429 786 540  |   Email – zac@cannonlogistics.com.au