Effective Ways to Reduce Shipping Costs

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Are you looking for ways to reduce shipping
costs? If yes, then dont worry we are here for
the rescue. Running a business can be pretty
costly and tiresome. The main question is how one
can lower their shipping costs without
sacrificing the services and customer
satisfaction.  Many companies where freight is
the most crucial element in carrying out the
business processes, will definitely face
increased charges. The freight charges account
for a significant portion of the companys
expenses. In order to reduce such transport
logistics, companies tend to face various budget
pressures. 
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What do shipping expenses entail?

• Before beginning, we should know what shipping
  costs actually are.
• For every company, it will have its own meaning.
  
• For different companies, there will be different
  understandings of shipping costs.
• But in general terms, it is the cost that
  includes the expenses incurred during moving a
  product to its final destination. 
• Logistics expenses usually encompass the costs
  associated with purchasing, warehousing,
  workforce, packaging, shipping, and the overhead
  expenses related to moving goods across your
  entire supply chain.
• So, to ease the process, SAG Logistics is here
  to help, a leading LCL shipping company in Dubai
  which provides other services like intermodal
  transportation, EOR/IOR services and the like.  

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Here know the most efficient ways to reduce
shipping costs

• 1. Optimising shipping routes  )
• It is one of the most effective yet basic ways
  to reduce freight charges is by optimising the
  shipping routes.
• By analysing the data, one can determine the
  most efficient shipping route to transport their
  goods.
• Factors that should be determined are 
• Distance
• traffic patterns
• delivery times
• Routes 
• By looking at all these factors, the companies
  can lower their fuel consumption and
  transportation time which reduces shipping costs.

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2. Using Intermodal transportation 

• Using more than one mode of transportation to
  move goods from one place to another is termed
  intermodal transportation.
• One such example is, say goods are transported
  by truck, then by rail or sea and then again by
  truck to reach their final destination.
• This method can be more cost-effective than only
  using one transportation since the fuel costs can
  be minimized and hence will lower the freight
  charges.
• This will also help in reducing the risk of
  delays due to traffic or other factors. 

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3. Consolidate shipments 

• They can also be termed as LCL shipping aka less
  than container shipping.
• If your shipment is compact and stackable but
  doesnt fill an entire container, you can opt for
  Less-than-Container-Load (LCL) shipping, which
  enables you to transport your shipment in a
  consolidated container shared with other goods,
  ensuring that your shipment keeps moving.
• This is a cheaper way of shipping goods hence
  reducing shipping goods.    

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4. Monitoring fuel prices

• It is crucial to monitor the fuel charges as
  they can have a significant impact on the
  shipping costs.
• By keeping a close check, companies can make
  adjustments to transportation routes and shipping
  options.
• This is one of the important ways to reduce
  shipping costs. 

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5. Evaluating packaging  

• It is also important to look into how to pack
  the goods since it also affects the freight
  costs.
• Choosing the right kind of packaging can help
  reduce the risk of damage during transportation,
  which impacts insurance costs.
• Additionally, choosing a lightweight packaging
  can help reduce the weight of goods hence lower
  transportation costs. 

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6. Using technology 

• One of the best ways to reduce shipping costs is
  by using the right technology.
• Technology plays a significant role in reducing
  shopping changes.
• The (TMS) Transportation Management System can
  furnish instant information on the status of
  shipments, empowering companies to make necessary
  modifications to avoid any holdups or
  complications that may lead to elevated expenses.

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