Controlling Transportation Costs And Green Intiatives For The Industry

Shopping for best freight rate

Without a doubt, one of the world?s largest industries is transportation. With transportation, one can factor in everything from trucks to airplanes, courier services to ships, barges, warehouses, and logistics services, as well as everything in between. As powerful as it is, however, the transportation industry is susceptible to change as much as any other. Things like green initiatives and controlling transportation costs have become major concerns, as is the ever-increasing need for speed and efficiency at the best price possible.

Controlling Transportation Costs: The Options Available

By controlling transportation costs, the transportation industry can keep itself accessible to the public at large rather than simply the individuals who can afford expensive travel or shipping. At the same time, the companies themselves can make great profits. Of course, there are those willing to overpay simply due to a lack of knowledge ? a total 80% of shippers overpay because of a fail to compare service levels and transit costs, unaware of a way to reduce parcel cost. The advantage of this to shippers is that they can reduce parcel price for themselves in relatively simple ways: by adding a shipping and handling charge to the freight amount, the shipper can reduce freight cost and turn from a cost center to a profit center.

Green Initiatives: Necessary In More Ways Than One

In 2011, the U.S. transportation sector was estimated to produce 28% of all carbon dioxide emissions. Reducing carbon dioxide emissions has become a major concern for the transportation industry ? not only because they?re detrimental to the environment, but because the public has become more concerned about green initiatives. Being a ?green? company can earn not only business, but in some cases, funding and other benefits. Certainly, some company owners have also become genuinely concerned with this issue, and certain green initiatives can even save money. For example, bubble wrap packaging is 75% less expensive than Styrofoam spacer packaging; and unlike Styrofoam, it?s recyclable.

Saving Money In Innovative Ways

It?s one thing to reduce freight price and seek out better fuel prices. There are new, forward-thinking ways that the transportation industry can cut costs. It?s important to be on the lookout for discount programs, offered by some industry associations and chambers of commerce. Look towards the Internet as well. While companies could pay 42 center apiece to send out direct mailers, it?s not only faster but more cost-effective to opt for electronic postage. Purchasing postage online equals a 3% price reduction, and using Priority Mail averages 3.5% in savings.

These two major concerns ? cutting costs and cutting down environmental toxins ? may seem daunting at first, but can be dealt with in efficient and, in some cases, exciting ways. Companies that promise to move into the future are more likely to attract clients and customers, and save themselves a lot of time and money while at it.

Leave a Reply