How to Decrease Expenses for Equipment Transport
How to Decrease Expenses for Equipment Transport
Francisca Olive / May 2023
The most expensive aspect of logistics is shipping and transportation. Statistics indicate that a third of logistics expenses are taken up by transportation, which significantly impacts how well the logistics department performs. This presents a challenge when it comes to transporting heavy equipment. If you’re not cautious about reducing these transportation costs, they can quickly skyrocket and affect your bottom line. This article will explain how to decrease expenses for equipment transport.
Choose The Most Fitting Mode of Transportation
Expanding your flexibility when it comes to different modes of transport can reduce costs in many ways. Generally, it is cheaper to ship freight by sea than by air. However, the duration of time could be a liability. Review and compare the different transportation costs and do not hesitate to switch to other modes if needed. If you typically rely on single modes, considering intermodal transport would be an alternative option. Although rail transit is a cheap equipment shipping method compared to trucking, a combination of the two might be the way to go to be on schedule and stay within budget. Another way to increase the mode’s flexibility is by scaling back on using more expensive shipping services.
Select a Reliable Shipping Company
If you do not have the required transportation resources, you will need to use a shipping and transportation company. Transporting heavy equipment calls for specialized handling and oversized consignment permits. Case in point: most oversized shipments will be transported using a flatbed trailer. A specialized trailer like a step-deck trailer is needed for stationary and bulkier or taller equipment. The ideal shipping company will possess the experience and knowledge to guarantee that your equipment will safely arrive at its target destination. This helps reduce losses and hefty equipment damage.
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Automate Certain Processes
Logistics have become so much easier thanks to technological advancements. Tracking orders from the moment they leave the warehouse to the moment the customer receives them has become possible, and this helps monitor any problems that may occur along the way. Additionally, it will provide you with real-time details about unforeseen disruptions so you can respond more quickly and efficiently.
Performing essential tasks manually can take up so much time and effort. Automating certain processes will decrease paperwork, reduce errors and shorten or eliminate delays during border crossing. This can cut costs by eliminating the need to outsource a customs agent.
If your inventory is not insured, your efforts to reduce other freight costs might be wasted. It is important to ensure your supplier’s insurance is up to date or that you have the right insurance cover for your inventory. Furthermore, it’s crucial to understand what your insurance will cover so that you don’t have to pay extra to ship expensive products and services.
If you are transporting equipment from one point to another, particularly over a long distance, you might consider setting up a warehouse close to your customers’ location to reduce your transportation costs significantly. Before anything else, you must figure out the security factor. Be vigilant with your security and ensure that your warehouse is operating safely. Make every effort to prevent costly accidents. Do everything you can to ensure you don’t have to pay any fines to the government. The government can shut down your business if you have numerous security issues. Recruit a safety manager to oversee safety and plan regular safety training.
Transporting consolidated goods from different suppliers within a country might take a little longer, but it might be worthwhile financially. Many smaller shipments can be combined into one shipment to reduce costs further.
Reducing The Size and Weight of the Equipment
Usually, it costs more to haul heavier loads than smaller, lighter ones. Therefore, saving money on equipment transport might entail dismantling and moving the equipment in multiple loads rather than just one. People should always get the correct information before choosing because different states have varying definitions of what qualifies as an oversized load. The idea of moving equipment as partial loads may seem illogical. However, this strategy might help reduce expenses.
Finding the most efficient methods to decrease expenses for equipment transport takes time and effort. You should remember that the best approaches vary based on the resources at your disposal and the equipment that needs to be moved.
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