Cuting Freight Costs when Fuel Keeps Rising

Most business owners are in sombre agreement that fuel prices are not going to drop anytime soon, if at all. With only the strength of the dollar to keep petrol below the $2 mark, it would take a brave soul to predict relief in the medium or even long term.

If as a distributor you agree with the above there is an important question that needs to, and can, be addressed. How can freight costs be managed effectively to minimise the impact of further fuel hikes?

Paul Lattimore, who heads the NZ agency for the Sydney developed IFS SmartFreight®, believes the answer lies in running multi–carrier dispatch software, with the ability to select the cheapest dispatch method per consignment.

“All carriers, whether courier or bulk, would prefer to be the exclusive provider in their field for any given client”, Mr Lattimore explains. “But while service is a major factor in your choice of freight provider, it’s important that you at least be aware whether your default carrier really provides the cheapest method of shipment for a particular consignment.”

The IFS SmartFreight® software system offers an optional “Cost Comparison” module, allowing freight rates for each carrier to be inserted. At the push of a button, any consignment going out the door can have the cheapest carrier automatically selected, eliminating guesswork and potentially saving a business thousands per year in unnecessary freight costs.

“Again, I’m as aware as anyone that speed and reliability are considerations when selecting which carrier should take which shipment”, says Mr Lattimore. “However to ignore the option of at least comparing rates for a consignment would be folly, given that the technology exists. All freight companies have strengths and weaknesses in their rates schedules, and different rate structures mean no carrier is going to come out on top every time.”  

IFS SmartFreight® has now exceeded 1400 installations worldwide, with most clients taking advantage of the multi-carrier options that the software provides. Since reaching New Zealand in 2005, IFS SmartFreight® is used to process over 120,000 shipped items per month, with clients throughout the country moving everything from hairspray to medical supplies to windscreens.

For more information, head online to www.smartfreight.co.nz
Paul Lattimore. paul@smartfreight.co.nz