Improving your Freight Costs 2 – Required History

Phase-2: The method I am using here is to enable you to compare the potential costs of different Freight Providers if you deliver Nationally or at least over a two States. The savings or differences between Providers can be up to 53% (this is an actual figure from a project I am currently doing!).

Once you have the history file of all your consignments for the relevant period together and in a spreadsheet, you should also have all the data for each consignment on one line, with the different types of data in specific columns. You can now remove all the information (columns) that reference a customer or receiver’s name and address (referred to as “Consignee”, while you are the “Consignor”).

What should remain are the following columns:

Date, Consignment No, Destination Suburb, Destination Post Code, Actual Weight, Volume, Number of Pieces.

If you send consignments from more than one place, you will need to include the Sender’s Suburb and Post Code.

Your history file has now been de-sensitised, yet retains all the information required by your preferred/selected carriers (freight providers) to work out an appropriate quote. Now before you send this off, you need to decide what is important to you and your customers. Also be aware, you do not need to send this information to the carriers, you can always just ask for their rate-card, but this would mean you do all the work in the spreadsheet.

Phase-3 of the project is to make a list of the performance standards you will be asking your carriers to provide for comparison. You will also be asking for a copy of all their ancillary charges (these are the ones that can really hurt the pocket if you are not aware of them up front). Next time, I will give you a list of the standards I look for.